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6. Learned counsel for the department would contend that the company by their letter dated 16.04.2003 submitted transcript of accounts of its Charlotte Branch office, along with the party wise details of export proceeds outstanding during the period 2000 to 2002, as extracted above. However, the company failed to produce copies of export invoices cum softex (software export detail) forms, against the said amount from their overseas customers. Hence, show cause notice dated 11.06.2003 was issued to the company, for non-realisation of export proceeds Rs.19,33,90,485/-, in contravention to Section 8 of the Act, read with Regulation 3 of the Foreign Exchange Management (Realization, Repatriation and Surrender of Foreign Exchange) Regulations 2000 and also read with Regulation 9 of the Foreign Exchange Management (Export of Goods and Services) Regulations 2000 and further read with Section 42(1) of FEMA 2000. Further, it is submitted that queries were also raised by the department relating to joint venture/ wholly owned subsidiaries. To that effect, the company had replied that a wholly owned subsidiary company in USA was started in the year 1996 and one joint venture company in UK was started in 1999. The wholly owned subsidiary company in USA was fully operational till early year of 2001 and thereafter the entire business are looked after by Chicago branch office. The joint venture company in UK is still operative and that 98% of equity is being held by MSIL, Chennai and the remaining 2% equity is held by 3 British nationals. A team of 2 officials of Mumbai Zonal office of the department, was deputed to Chennai to conduct investigation on the show cause notice and the company furnished information to the Enforcement department. Whileso, the company challenged the investigation conducted by the Bombay Zonal Office in W.P. Nos. 1171 and 1172 of 2004, on the ground of its jurisdiction. Based on the order dated 28.01.2004, passed by this Court in the aforesaid writ petitions, the said investigation was transferred to the Special Director of Enforcement I, New Delhi, for further adjudication.

On the basis of the aforesaid letter, the company failed to produce copies of export invoices cum softex (software export detail) forms, against the said amount shown as outstanding. By letter dated 12.05.2003, the company had stated that most of their exports were executed on-site at the customers site. Further stating that the exports have not provided the copies of the export invoices. The said fact was also conveyed by its banker, namely, Bank of Baroda, Chennai Corporate Banking Branch by its letter dated 11.04.2003. Hence, the show cause notice dated 11.06.2003 was issued to the company, under Section 8 of the Act, read with Regulation 3 of the Foreign Exchange Management (Realization, Repatriation and Surrender of Foreign Exchange) Regulations 2000. Section 8 of the Act, reads as follows :-