Knowingly facilitating export cargo diversion while retaining misleading shipping documents amounts to abetment and penalty liability.

A shipping agent who knowingly facilitated diversion of export cargo from the declared destination while keeping shipping documents showing the original destination was treated as an active participant in the contravention of foreign exchange law. The record showed that consignments booked for Moscow were diverted to Dubai, that the bills of lading continued to reflect Moscow, and that freight entries and related documents aligned with the diverted destination. On these facts, the tribunal found active involvement in the exporter's design, held the agent liable for abetment and contravention of the foreign exchange regime and RBI guidelines, and upheld the penalty.

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Issues: Whether the shipping agent was liable for penalty for facilitating diversion of cargo from the declared destination and thereby contravening the foreign exchange law.

Analysis: The shipping documents and the surrounding chronology showed that the consignments were booked for Moscow but were diverted to Dubai while the bills of lading continued to reflect the original destination. The record also showed that the shipping agent issued and relied upon documents consistent with Dubai delivery, the freight entries were aligned with the diverted destination, and the diversion was carried out in a manner that fitted the exporter's design. On this evidence, the appellant was found to have played an active role in the diversion of cargo and to have facilitated the exporter's violation of the foreign exchange regime and the RBI guidelines.

Conclusion: The shipping agent was held liable for contravention and abetment, and the penalty was upheld against it.

Final Conclusion: The appeal failed on merits because the appellant's conduct was treated as active participation in the unlawful diversion of export cargo, warranting affirmation of the penalty order.

Ratio Decidendi: Where a shipping agent knowingly facilitates diversion of export cargo from the declared destination while retaining documents showing the original destination, such conduct amounts to active participation in and abetment of contravention under the foreign exchange law.

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