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Issues:
1. Imposition of penalty for non-realization of export proceeds under the Foreign Exchange Regulation Act, 1973. 2. Consideration of appellant's efforts to realize outstanding export proceeds. 3. Assessment of the proportionality of the penalty imposed. 4. Determination of the appropriate quantum of penalty. Detailed Analysis: 1. The appeal was filed against the imposition of a penalty of Rs. 2.5 lakhs on the appellant for non-realization of export proceeds, contravening section 18(2) of the Foreign Exchange Regulation Act, 1973. The appellant complied with the Board's order by depositing the penalty amount, leading to the disposal of the appeal on merits. 2. The appellant argued that despite efforts to recover the outstanding amount from a financially troubled foreign buyer, the export proceeds were not received. The appellant sought extensions and even refunded cash assistance, demonstrating bona fide intentions. However, the respondent contended that the appellant should have taken more proactive steps, such as re-importing goods or finding an alternate buyer, to realize the outstanding amount. 3. The respondent argued that the quantum of penalty was proportionate to the appellant's non-realization of export proceeds. The appellant, on the other hand, claimed that the penalty was excessive compared to the outstanding amount and that the non-realization was not intentional but due to circumstances beyond their control. 4. The Chairman found merit in the respondent's submissions, emphasizing that the appellant should have taken more decisive actions to recover the export proceeds. Despite the appellant's efforts, the Chairman concluded that the steps taken were not effective in realizing the outstanding amount. However, considering the appellant's financial losses and export performance, the Chairman reduced the penalty to Rs. 50,000, deeming it sufficient for the case. 5. Ultimately, the Chairman directed the retention of Rs. 50,000 as the penalty amount, refunding the balance to the appellant within 45 days. The decision balanced the appellant's efforts and circumstances with the need for accountability under the Foreign Exchange Regulation Act.
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