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Alleged contravention of Foreign Exchange Regulation Act - Failure to realize full export proceeds within prescribed time - Imposition of penalty on Ciba Industrial Corporation. Analysis: The judgment pertains to a case where a memorandum was issued to the appellant, Ciba Industrial Corporation, alleging a violation of the Foreign Exchange Regulation Act. The appellant was accused of failing to secure the realization of full export proceeds within the prescribed time frame for garments exported to the U.S.A. in 1977. Subsequently, an adjudication order was passed imposing a penalty of Rs. 20,000 on the appellant. The Assessing Officer found the appellant guilty based on the failure to provide evidence of receiving payments against the outstanding export forms, as required by banking procedures. The appellant contended that a significant portion of the export proceeds had been realized and deposited in their current account with Central Bank of India. The appellant argued for leniency due to the realization of proceeds, albeit not in the prescribed manner. On the other hand, the respondent maintained that the export proceeds against the relevant forms were still outstanding, emphasizing the lack of certification from the bank regarding the connection between the received amount and the specific forms in question. Upon review, the Chairman examined a certificate provided by Central Bank of India, which did not confirm that the credited amount was related to the export proceeds covered by the disputed forms. Consequently, the Chairman upheld the Assessing Officer's conclusions, highlighting the appellant's failure to justify receiving proceeds directly instead of through authorized banking channels. The Chairman deemed the appellant's explanation unsatisfactory, especially considering the prolonged outstanding export proceeds since 1977, and upheld the penalty of Rs. 20,000 as reasonable. Ultimately, the appeal was dismissed as the Chairman found no merit in the appellant's arguments. The adjudication order imposing the penalty was confirmed, leading to the dismissal of the appeal.
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