Presumption against exporter for unrepatriated export proceeds sustained; partner penalty set aside absent independent culpability.

A statutory presumption against the exporter applied where export proceeds were not repatriated, and the partnership firm failed to rebut it because general assertions that goods remained unsold abroad and that visits were made to the buyer did not show reasonable efforts to recover the proceeds. The finding of guilt and penalty against the firm were therefore sustained, and the penalty was not treated as excessive. By contrast, no independent material established separate culpability of the partner, so simultaneous penalty on the partner was unsustainable and was set aside.

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Issues: (i) whether the penalty imposed on the partnership firm for failure to repatriate export proceeds was justified; (ii) whether the penalty imposed on the partner was sustainable.

Issue (i): whether the penalty imposed on the partnership firm for failure to repatriate export proceeds was justified.

Analysis: The relevant provision created a presumption against the exporter unless reasonable efforts to repatriate the export proceeds were proved. The explanation that the goods remained unsold abroad and that two visits were made to persuade the foreign buyer was found insufficient to rebut that presumption. The adjudication finding of guilt against the firm was therefore upheld, and the quantum of penalty was not treated as excessive.

Conclusion: The penalty and finding of guilt against the partnership firm were sustained.

Issue (ii): whether the penalty imposed on the partner was sustainable.

Analysis: The firm was a partnership concern, and no separate factual basis was shown to fasten guilt on the partner independently. On that footing, simultaneous imposition of penalty on both the firm and the partner was not warranted in the absence of material establishing the partner's distinct culpability.

Conclusion: The finding of guilt and penalty imposed on the partner were set aside.

Final Conclusion: The appeal succeeded only in relation to the partner, while the liability of the firm remained undisturbed.

Ratio Decidendi: Where a statutory presumption requires proof of reasonable efforts to repatriate export proceeds, the presumption is not rebutted by general assertions or unconnected visits, and penalty on a partner cannot be sustained absent independent material showing separate culpability.

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