Export document preparer not liable for foreign exchange penalty without proof of involvement in export proceeds default

Penalty under the Foreign Exchange Regulation Act could not be sustained where the person proceeded against was shown only as an export document preparer acting for consideration, and not as an exporter, company controller, or person responsible for realisation of export proceeds. The material on record did not establish his participation in the company's default or any direct connection with the alleged contravention. In the absence of evidence linking him to the substantive violation, penal action against him was unjustified and the penalty was set aside.

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Issues: Whether penalty under Section 18(2) read with Section 18(3) of the Foreign Exchange Regulation Act, 1973 could be sustained against a person shown only as an export procedure agent who prepared export documents and was not shown to be part of the exporting company or responsible for realisation of export proceeds.

Analysis: The appellant's role, as reflected from the record and the impugned order, was limited to preparing export documents for consideration. The material did not show that he was an exporter, a person in control of the company, or otherwise connected with the default in realisation of export proceeds. In the absence of evidence establishing his involvement in the contravention alleged against the company, penal action against him could not be justified.

Conclusion: The penalty imposed on the appellant could not be sustained and was liable to be set aside.

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