Repatriation of export proceeds: statutory presumption remained unrebutted, and the penalty was upheld.

Section 18(2) of the Foreign Exchange Regulation Act, 1973 requires an exporter to take reasonable steps to realise and repatriate export proceeds, and section 18(3) raises a rebuttable presumption of contravention where payment is not received within the prescribed period. Rule 8 of the Foreign Exchange Regulations Rules, 1974 similarly requires realisation within the stipulated time. On the stated facts, the exporter's efforts were found inadequate, no extension of time or waiver was obtained, and no satisfactory material displaced the statutory presumption. The penalty order was therefore upheld.

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Issues: Whether the exporter took reasonable steps to repatriate the export proceeds and whether the penalty for contravention of section 18(2) read with section 18(3) of the Foreign Exchange Regulation Act, 1973 was sustainable.

Analysis: The legal obligation under section 18(2) is to take reasonable steps for realisation and repatriation of export proceeds. Section 18(3) creates a rebuttable presumption that reasonable steps were not taken if payment is not received within the prescribed period. Rule 8 of the Foreign Exchange Regulations Rules, 1974 requires realisation within the stipulated time. The claimed efforts were found inadequate on the facts, the exporter had not obtained extension of time or waiver, and the statutory presumption was not displaced by any satisfactory material.

Conclusion: The exporter failed to rebut the presumption under section 18(3), and the penalty order was upheld.

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