Export proceeds realisation by uncontroverted documents defeats penalty for alleged non-realisation under foreign exchange law.

Penalty for alleged contravention of Section 18(2) and Section 18(3) of the Foreign Exchange Regulation Act, 1973 could not be sustained where the exporters produced export realisation particulars, bank certificates and contemporaneous documents showing that the proceeds had in fact been realised. The respondent did not dispute the documentary evidence, so the factual for treating the proceeds as outstanding disappeared. On that basis, the impugned order was set aside and the appeals were allowed.

---

---

Issues: Whether the penalty imposed for contravention of Section 18(2) and Section 18(3) of the Foreign Exchange Regulation Act, 1973 for non-realisation of export proceeds was liable to be set aside in view of the evidence that the export proceeds had been realised.

Analysis: The appellants produced export realization particulars, supporting bank certificates, and contemporaneous documents showing that the outstanding export proceeds had been realised. The record also showed that the respondent did not dispute the documentary evidence. In these circumstances, the basis for sustaining the penalty for non-realisation did not survive.

Conclusion: The impugned order was set aside and the appeals were allowed in favour of the appellants.

Ratio Decidendi: When realisation of export proceeds is established by uncontroverted documentary evidence, a penalty founded on alleged non-realisation cannot be sustained.

---