AADIK EXPORTS Vs. DIRECTORATE OF ENFORCEMENT

JUDGEMENT

(1.) THE petitioner, Aadik Exports, by way of present writ petition has challenged order dated 2nd July, 2008 passed by the Appellate Tribunal for foreign Exchange disposing of the application for waiver of pre-deposit of penalty amount of Rs. 3,00,000/- with the condition that the petitioner will deposit 50% of the penalty amount within thirty days.

(2.) IN 1992, the petitioner had supplied garments to a buyer in Finland vide two invoices of US$ 11279. 50 and US$ 5642. 50. It is the case of the petitioner that the foreign buyer did not take delivery of the consignment due to alleged defects and the shipment was stored in the bonded warehouse at Helsinki, Finland. It is the case of the petitioner that a new foreign buyer could not be located and the agent of the foreign buyer later on exercised right of lien on the cargo. The petitioner had no option but to write off the two invoices as legal expenses involved for initiating litigation were substantial, while value of the two consignments was marginal. Learned counsel for the petitioner in this regard has also relied upon certificate issued by the American Express Bank to write off the outstanding export proceeds and close the file of the petitioner.

(3.) IT is admitted that the Reserve Bank of India has granted approval to waiver/ write off the export proceeds of one of the consignments valued at US$ 5642. 50. However, no waiver or write off in respect of the other assignment of us$ 11297. 50 has been granted by the Reserve Bank of India.