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1976 (3) TMI 59 - SUPREME COURTWhether there was no violation of Section 12(1) of the Foreign Exchange Regulation Act ? Held that:- Although the statement in the declaration that the value of the goods mentioned in column 4 at ₹ 63,301.50 was to be received in India in Indian rupees for the export of goods to Italy was not untrue, the affirmation, if made, would have been either false or contrary to the requirement of the law. If in the affirmation the appellant had stated that for the value of the goods exported to Italy it was to receive the payment in Indian rupees through the Chartered Bank Ltd., Cochin as per the declaration, then the affirmation would have violated Section 12(1) as it would not have been on affirmation stating that the export value would be paid in the prescribed manner. Absence of affirmation in the declaration furnished by the appellant is tantamount to failure on the part of the appellant to comply with the requirement of the law engrafted in Section 12(1) of the Foreign Exchange Regulation Act. That being so, the decision of the Division Bench of the High Court that the appellant had attempted to export goods in violation of the restrictions imposed under Section 12(1) of the Foreign Exchange Regulation Act is fit to be upheld, but on a different basis. on the facts and in the circumstances of this case we feel persuaded to reduce the amount of penalty imposed upon the appellant from ₹ 25,000/- to ₹ 15,000/-. The direction as to the payment of ₹ 5,000/- in lieu of confiscation of the goods is upheld. Since the law engrafted in the amended Section 12(1) of the Foreign Exchange Regulation Act was not very clear either to the Custom Authorities or to the High Court resulting in the recording of the findings against the petitioner on a wrong basis, although not affecting the substance of the view that the appellant had violated Section 12(1) of the Foreign Exchange Regulation Act, we have thought it fit to reduce the quantum of penalty by ₹ 10,000/-.
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