Export proceeds repatriation under FERA: statutory presumption of contravention upheld where no timely recovery steps were shown.

Failure to realise export proceeds within the prescribed period under FERA gives rise to a rebuttable presumption of contravention, and liability follows where the exporter cannot show timely, reasonable steps to recover the amount. The record showed no contemporaneous effort before expiry of the statutory period, so the presumption was not displaced and contravention was treated as complete. Repeal of FERA by FEMA did not extinguish liability for offences already committed under the repealed Act because of the savings provision. The penalty order was restored.

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Issues: Whether failure to realise export proceeds within the prescribed time constituted contravention of the Foreign Exchange Regulation Act, 1973, and whether the exporter had rebutted the statutory presumption by showing reasonable steps to recover the amount.

Analysis: Export proceeds from goods exported in early 2000 were not realised within six months, and the first correspondence with the authorities was issued only after expiry of the statutory period. Under Section 18(3) of the Foreign Exchange Regulation Act, 1973, once the prescribed period expires without payment being received, a rebuttable presumption arises that all reasonable steps were not taken to recover the amount. The Court found no material showing sincere or reasonable efforts within time and held that the contravention was complete upon failure to secure repatriation within the statutory period. It also held that the repeal of FERA by FEMA did not wipe out liability for offences already committed under the repealed Act, in view of the savings provision.

Conclusion: The exporter was held to have contravened Sections 18(2) and 18(3) of the Foreign Exchange Regulation Act, 1973, and the penalty order was restored.

Final Conclusion: The appeal succeeded and the Tribunal's order was set aside, with the adjudication finding and penalty under FERA upheld.

Ratio Decidendi: Failure to repatriate export proceeds within the prescribed time gives rise to a statutory presumption of contravention, which can be displaced only by proof of reasonable steps taken within time; absent such proof, liability under FERA follows notwithstanding the repeal of the Act.

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