I have setup FTP server in Ubuntu 12.04 LTS.
Now when when I try to connect to FTP server from Windows 7 through command-line ftp.exe, I get successfull
You need to use passive mode.
If you're using linux client, use pftp or ftp -p.
From man ftp:
-p Use passive mode for data transfers. Allows use of ftp in environments where a firewall prevents connections from the outside world back to the client machine. Requires that the ftp server support the PASV command. This is the default if invoked as pftp.