Conditional regulatory relief requires strict proof of compliance, with the burden remaining on the party claiming the benefit.

RBI permission to write off or set off unrealised export proceeds was conditional on surrender of proportionate export incentives and production of documentary proof. The exporters failed to show, with verified material, the exact incentives availed in respect of the relevant GR forms; unencashed cheques alone did not establish compliance. The burden of proving fulfilment of the condition remained on the exporters and did not shift to the opposing authority merely because it lacked the records. The Tribunal's approach of treating that burden as discharged was found erroneous, and the matter was remanded for fresh consideration on the additional documents and further material.

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Issues: Whether, on the RBI's conditional permission for write-off/set-off of unrealised export proceeds, the burden of proving surrender of proportionate export incentives remained on the exporters and whether the Tribunal was right in holding that burden to have been discharged.

Analysis: The RBI's permission was not unconditional; it required the exporters to surrender the export incentives availed of, proportionate to the amount written off, and to furnish documentary proof. The exporters did not produce evidence showing the exact incentives availed in respect of the concerned GR forms. Mere reliance on two cheques said to have been sent to the Customs authorities did not establish compliance, particularly when those cheques were never encashed and no verified material was produced to show full surrender of the incentives. In these circumstances, the obligation to prove compliance with the condition attached to the RBI permission continued to rest with the exporters, and the Tribunal erred in shifting that burden to the Enforcement Directorate.

Conclusion: The finding of the Tribunal was set aside, and the matter was remanded to the Adjudicating Officer for fresh consideration on the basis of the additional documents and any further material produced by the respondents.

Ratio Decidendi: Where statutory or regulatory relief is granted subject to fulfilment of a condition, the party claiming the benefit must affirmatively prove compliance with that condition, and the burden does not shift to the opposing authority merely because it does not possess the relevant records.

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