Check the proxy setting on Server..
For the same
Go to SEPM Console
Admin Tab
In Admin select Servers Tab
In server, Select the Local Site(My Site)
Edit the proper of your Server in it.
One screen will be display, Go to Proxy Server Tab.
There two blog display(HTTP Proxy Setting & FTP Proxy Setting)
Select the "Donot use a Proxy" in both and Ok.
Then try the LUAL Command.
Hope it will help you