Export proceeds repatriation and statutory presumption of non-compliance upheld where proof of compliance was absent.

Where export proceeds are not repatriated within the prescribed period, the exporter must place material showing the steps taken to secure payment or obtain the Reserve Bank of India's permission; otherwise the statutory presumption of non-compliance under Section 18(3) remains unrebutted. On the record, no adequate material was produced for one consignment, and the plea based on the bank's conduct did not cure the absence of proof of compliance. The contravention was therefore upheld, and the penalty as reduced was sustained.

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Issues: Whether the appellant had established compliance with the obligation to repatriate export proceeds and rebutted the statutory presumption of non-compliance arising on expiry of the prescribed period.

Analysis: The statutory scheme required the exporter to repatriate the sale proceeds within the prescribed period unless permission of the Reserve Bank of India was obtained. On failure to repatriate within time, Section 18(3) raised a rebuttable presumption that the exporter had not taken the requisite steps to secure payment. The record showed no material placed by the appellant regarding steps taken for repatriation of the amount relating to one of the consignments, and the plea based on the bank's conduct did not displace the absence of proof of compliance for that export transaction.

Conclusion: The appellant failed to rebut the statutory presumption and was rightly held liable for contravention in respect of the unrepatriated export proceeds.

Final Conclusion: The finding of violation and the consequent penalty, as reduced by the Tribunal, were sustained and the appeal failed.

Ratio Decidendi: Where export proceeds are not repatriated within the prescribed period, the exporter must adduce material showing the steps taken to obtain repatriation, failing which the statutory presumption of non-compliance under Section 18(3) stands unrebutted.

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