AJANTHA CASHEW CO Vs. ASST DIRECTOR OF ENFORCEMENT

JUDGEMENT

(1.) The appellant is an exporter of cashewnuts. It had entered into a contract with a foreign buyer, M/s. Zaloom Brothers Inc., New York, through its agents, M/s. Able Reggio Company Inc., New York, for sale of 1500 cartons of cashewnuts during July, August and September, 1971. The price stipulated was 70 cents per pound.

(2.) It appears that there were certain overdrawings by the appellant from its agent and certain adjustments were made on account of the alleged default in shipping the stipulated quantity of cashewnuts, during August, 1971. The statement of accounts submitted by its agents are alleged to have been forwarded to the Reserve Bank of India by the appellant along with its covering letters. One such statement indicated that an amount of U. S. Dollars 750 was appropriated from the overdrawn balance due to the appellant on various shipments of cashew consignments. A further amount of US Dollars 203. 94 was shown as having appropriated by the agent as over drawing made by the appellant but really due to the agent.

(3.) Proceedings were initiated by the Assistant Director of Enforcement under the Foreign Exchange Regulation Act, stating that the appellant contravened S.5(1) read with S.12(2) of the Foreign Exchange Regulation Act 1947, in that an amount of US Dollars 953.94 from out of the value of the goods exported by the appellant were not repatriated into India within the period prescribed. After calling for the explanation of the appellant, the Assistant Director passed an order dated 7-12-1977 requiring the appellant to pay an amount of Rs. 1000/- each for contravention of S.5(1)(a) and S.12(2) of the Foreign Exchange Regulation Act, 1947.