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Issues:
1. Penalty imposed under section 18(2) of FERA, 1973 for contravention of export regulations. 2. Failure to realize export proceeds and adjustments made without RBI permission. 3. Allegations of under-invoicing and delay in realization of export proceeds. 4. Responsibility of partners and Power of Attorney holder in the appellant-firm. 5. Contention regarding the reasonableness of steps taken for realization of export proceeds. 6. Interpretation of sections 18(2) and 18(3) of FERA, 1973. 7. Liability under section 68(1) of FERA, 1973 and quantum of penalties imposed. The judgment by the Appellate Tribunal for Foreign Exchange, New Delhi involved appeals against penalties imposed for contravention of section 18(2) of FERA, 1973. The penalties were imposed on the appellant-firm and individuals for reducing unit prices of exported items without RBI permission and failure to realize export proceeds. The appellants were found guilty despite contentions of adjustments being for mutual dues and steps taken for realization. The tribunal noted the unauthorized adjustments and lack of evidence of receipt of payments, upholding the penalties. The tribunal emphasized the obligation under section 18(2) to repatriate full export value within the specified period and the presumption of non-compliance if payment is not received. The tribunal found the steps taken for realization inadequate, especially considering the close association of partners with foreign buyers. The responsibility of partners and a Power of Attorney holder was highlighted, with penalties upheld as proportionate to contraventions under sections 18(2) and 68(1) of FERA, 1973. The appellants were directed to deposit the penalty amount within 15 days, failing which recovery would be made by the respondent in accordance with the law.
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