Export proceeds contravention turns on buyer delivery of goods before any finding on liability under foreign exchange law.

Liability for alleged non-realisation of export proceeds under section 18(2) depends first on whether the foreign buyer actually took delivery of the exported goods. If the goods were not delivered or cleared by the buyer, no payment obligation would arise and no contravention would be attracted; if they were delivered, the authority must then assess whether adequate steps were taken to secure payment and give reasons. Because the existing record did not resolve this foundational factual issue and relevant correspondence was said to be absent from the adjudication, the matter required reconsideration on that point and the impugned order was set aside with remand for fresh adjudication.

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Issues: Whether the matter should be remanded for fresh adjudication on the question whether the foreign buyers had taken delivery of the exported goods, since the applicability of contravention under section 18(2) depended on that factual determination.

Analysis: The record showed outstanding export realisations in respect of three GRIs, but the appellant asserted that the relevant correspondence and supporting material had not been placed before the adjudicating authority. The decisive factual question was whether the foreign buyers had actually taken delivery of the goods covered by the outstanding GRIs. If the goods were not cleared by the buyers, no liability for payment for the goods would arise and the alleged contravention under section 18(2) would not be attracted. If the goods were cleared, the authority would then have to examine whether adequate steps had been taken to secure payment and record findings with reasons. In these circumstances, the existing adjudication was incomplete and required reconsideration on the relevant factual issue.

Conclusion: The impugned order was set aside and the matter was remanded for fresh adjudication, with directions to determine whether the goods were delivered to the foreign buyers and to decide the charge accordingly.

Ratio Decidendi: Where liability for non-realisation of export proceeds turns on whether the foreign buyer actually took delivery of the goods, the adjudicating authority must first determine that foundational fact before concluding on contravention under section 18(2).

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