Appellant applied for rebate of Central Excise Duty by producing...

Appellant applied for rebate of Central Excise Duty by producing fake shipping bills, fraudulently availing rebate. Settlement Commission order stated no immunity granted under FEMA. Findings conclusive - remittances received without actual exports, documents bore appellant's signatures, export proceeds realized by appellant without written arrangement. Delay irrelevant as FEMA violations civil in nature. Appellant responsible as proprietor to ensure export realization. Contravened FEMA by not making shipments within one year of receiving advance remittances. Penalty imposable despite lack of mens rea. Mitigating factors - appeared all documentation completed, later known documents forged, full disclosure to Settlement Commission, paid liabilities. No evidence of active collusion in forgery. Penalty reduced to Rs. 5 lakhs by AT.