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Issues:
Violation of provisions of section 18(2) read with section 18(3) of the Foreign Exchange Regulation Act, 1973 regarding repatriation of export proceeds. Analysis: The appeal was filed against Adjudication Orders for contravention of the provisions of the Foreign Exchange Regulation Act. The Appellate Tribunal considered two appeals together. The appellant submitted letters from RBI granting extension for repatriation of export proceeds till January 28, 2006, for 21 GRIs, which were the subject of the appeals. The Tribunal noted that the extension by RBI absolved the appellants from any violation of section 18(2) of the Act, as no action contrary to RBI's permission was taken. The Tribunal emphasized the role of RBI as the custodian of foreign exchange, citing a Supreme Court judgment supporting RBI's exclusive authority in matters related to foreign exchange regulation. The respondent argued that the extended period might end before January 28, 2006, and the extension letter was not before the Adjudicating Authority. However, the Tribunal rejected this argument, stating that contravention cannot occur after receiving an extension from RBI. The Tribunal held that the Adjudication Orders were to be set aside and quashed, considering the later extension date by RBI. The Tribunal asserted its wide jurisdiction in sitting as an appeal authority, ensuring that justice is not obstructed by legal technicalities. Therefore, the Tribunal set aside and quashed the two Adjudication Orders, allowing both appeals in favor of the appellant.
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