Export proceeds later realised cannot sustain a non-realisation contravention under FERA when default has ceased before final disposal.

Subsequent realisation of export proceeds can defeat a charge of non-realisation under Section 18(2) of the Foreign Exchange Regulation Act, 1973 when the outstanding amount has been received before final disposal. The appellant produced bank certificates and inward remittance records showing that the foreign exchange earlier treated as outstanding had later been credited. On that factual basis, the default assumed in adjudication no longer survived, and the contravention was held not sustainable. The penalty order was set aside and the pre-deposit was refundable.

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Issues: Whether the appellant could be held guilty of contravention of Section 18(2) of the Foreign Exchange Regulation Act, 1973 for non-realisation of export proceeds after the outstanding amount had subsequently been received.

Analysis: The appeal concerned a penalty imposed for failure to realise export proceeds. The appellant produced bank certificates and inward remittance records showing that the outstanding foreign exchange had later been received and credited to his account. On that basis, the factual foundation for holding him in default no longer survived, since the amount found outstanding by the adjudicating authority had already been realised.

Conclusion: The appellant could not be found guilty of contravention under Section 18(2) of the Foreign Exchange Regulation Act, 1973.

Final Conclusion: The penalty order was set aside and the appellant obtained refund of the pre-deposit.

Ratio Decidendi: Where export proceeds found outstanding in adjudication are subsequently realised before final disposal, the contravention for non-realisation under Section 18(2) is not sustainable on that basis.

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