Export proceeds non-realisation attracts rebuttable presumption of contravention when no reasonable recovery steps are shown.

Failure to realise and repatriate export proceeds within the prescribed period under Section 18 of the Foreign Exchange Regulation Act, 1973 attracts a rebuttable presumption that the exporter did not take all reasonable steps to secure payment. On the facts, outstanding amounts remained unpaid against several GRs, and no material was produced to show adequate recovery efforts, so the presumption was not displaced. The plea for write-off was rejected because such relief was not available in these proceedings. The penalty was also not found excessive in light of the extent of contravention, and the penalty order was upheld.

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Issues: Whether the appellant had failed to realise and repatriate export proceeds so as to attract contravention of Section 18(2) and the statutory presumption under Section 18(3) of the Foreign Exchange Regulation Act, 1973, and whether the penalty imposed was liable to be interfered with.

Analysis: The outstanding export proceeds remained unpaid in respect of several GRs. The statutory scheme under Section 18(2) prohibits acts resulting in delayed or incomplete realisation of export proceeds, and Section 18(3) raises a rebuttable presumption that the exporter did not take all reasonable steps to recover payment once the prescribed period has expired. On the facts, no material was produced to show adequate steps taken to recover the dues, so the presumption was not displaced. The plea based on write-off was rejected because the Tribunal had no power to grant such relief in these proceedings. The penalty was also found not to be excessive having regard to the extent of contravention.

Conclusion: The contravention was established and the penalty order was upheld.

Final Conclusion: The appeal failed on merits and the adjudication imposing penalty remained undisturbed.

Ratio Decidendi: In proceedings under Section 18 of the Foreign Exchange Regulation Act, 1973, failure to realise export proceeds within the prescribed period attracts a rebuttable presumption of contravention, and the exporter must adduce material showing reasonable steps taken to recover the payment to displace that presumption.

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