Rebuttable presumption in export proceeds cases requires proof of reasonable recovery efforts before penalty can be sustained.

Non-realisation of export proceeds creates only a rebuttable presumption of contravention under foreign exchange law; liability cannot be sustained where the exporter shows reasonable steps to recover the dues, such as correspondence with the bank and buyer, requests for assistance, and applications for extension or write-off. The adjudicating authority must consider this evidence and the status of the write-off request before imposing penalty. The impugned order was set aside and the matter remitted for fresh adjudication on the exporter's efforts to realise the proceeds and the disposal of the write-off application.

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Issues: Whether non-realisation of the full export proceeds constituted contravention of the foreign exchange law and whether the evidence of efforts taken by the exporter was sufficient to rebut the statutory presumption and justify penalty.

Analysis: The record showed that the exports were made under letters of credit, that the appellant had corresponded with the bank and the foreign buyer, sought assistance from the Indian High Commission, and approached the Reserve Bank of India for extension of time and write-off. The Adjudicating Officer had not considered this material evidence. Mere non-realisation of export proceeds does not by itself establish contravention; it gives rise only to a presumption, which can be rebutted by proof that reasonable steps were taken to recover the amount. The Reserve Bank's letter also indicated that the application for write-off was to be dealt with by the bank, and the effect of that disposal was relevant to the adjudication.

Conclusion: The penalty could not be sustained without reconsidering the evidence and the status of the write-off application, and the matter required fresh adjudication.

Final Conclusion: The impugned order was set aside and the matter was sent back for reconsideration on the basis of the appellant's efforts to realise the export proceeds and the outcome of the write-off request.

Ratio Decidendi: Non-realisation of export proceeds raises only a rebuttable presumption of contravention, and where the exporter shows reasonably adequate steps to recover the dues, liability cannot be sustained without proper consideration of that evidence.

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