Export proceeds repatriation default: Penalty upheld for non-compliance with RBI write-off conditions.

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....The HC dismissed the appeals challenging the penalty imposed for failure to take reasonable steps for repatriation of export proceeds of US$ 5,36,759.50 for goods exported in 1997-98. The ground of limitation was rejected as the show cause notice was issued within the prescribed period and the appellants had submitted a reply. On merits, the Reserve Bank of India's write-off was subject to return of export incentives availed, which the appellants failed to comply with, thereby contravening Sections 18(2) and 18(3) of the Act. The Appellate Tribunal had reasonably reduced the penalty to 1/3rd after due consideration of the appellants' contentions. The HC found no merit to interfere with the reasoned orders.....