NEGOLICE INDIA LTD Vs. DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) THIS appeal is directed against the impugned order dated 5th December, 2007 passed by the Appellate Tribunal for Foreign Exchange ('AT'), allowing the Revision Petition No. 279 of 2005 filed by the Respondent, Directorate of Enforcement ('DoE') and setting aside the adjudication order ('AO') dated 12th October, 2004 passed by the Additional Director General('ADG'), Enforcement Directorate ('ED') exonerating the Appellants of violation of Section 8(1) of the Foreign Exchange Regulation Act, 1973 ('FERA'). Appellant No. 1, Negolice India Limited ('NIL'), received an export order from M/s. Ace Plast Limited ('APL'), Sharjah, United Arab of Emirates ('UAE') for 1,54,000 pieces of C -90 pre -recorded audio cassettes of the value of Rs. 35,92,512/ - [equivalent to US Dollar ('USD') 83,160]. The said consignment was dispatched by NIL to APL under shipping bill dated 23rd December, 1999. Admittedly, NIL received the full remittance for the consignment. For some reason, however, APL did not lift the consignment which had reached the Dubai Port. The abandoned consignment was subsequently auctioned by the Dubai Port authorities for Rs. 1,20,000/ -.

(2.) ON 24th July, 2000, a letter was written by the Consulate General of India ('CGI'), Dubai to the Directorate of Revenue Intelligence ('DRT) drawing attention to the fact that a consignment of audio cassettes exported by NIL, which was lying unclaimed at the Dubai Port, had subsequently been auctioned. The letter stated that it was suspected that the exporters of the said consignment 'have indulged in some sort of export fraud'. Meanwhile, consequent to the completion of the export transaction, a transferable advance licence ('TAL') for import of 1,54,000 C -90 audio cassettes was issued to NIL. The said TAL was sold by NIL to M/s. R.K. Global ('RKG'), a sister concern. RKG then imported 1,54,000 blank cassettes of Sony -make from an entity in Thailand by placing an order on M/s. Nishant Import and Export Company ('NIEC'), Sharjah. The import was effected under bill of entry dated 26th April, 2000.

(3.) ADMITTEDLY , no further investigation was undertaken by the Intelligence/Investigation Wing of the CGI in Dubai to ascertain the reasons for the APL not lifting the consignment of the audio cassettes exported to it by NIL.