Page 46 - ELT_15th July 2020_Vol 373_Part 2

A52 EXCISE LAW TIMES [ Vol. 373

of suspension of IEC can be passed only on temporary basis i.e. till the penalty is
paid or recovered. Therefore, if suspension order under Section 8 of FTDR is
passed (which is conclusive in nature) along with imposition of penalty under
Section 11 it will not only be a double whammy but it will also take away the
essence of engrafting sub-section (7) in Section 11 of FTDR, thereby vitiating the
whole scheme behind the introduction of Section 11 in the FTDR. Hence, if order
imposing penalty is passed under Section 11, then in such a situation, only tenta-
tive suspension order under Section 11(7) may be passed and permanent suspen-
sion order under Section 8 cannot be passed.
Conclusion
From the above discussion, it becomes clear that Adjudication Authority
cannot simply suspend the IEC of a person, while doing so he must be mindful
of the following :
 Whether ‘reason to believe criteria’ is getting fulfilled before issu-
ance of SCN.
 Show Cause Notice (“SCN”) explicitly expounding his guilt and
grounds on which such person’s IEC is proposed to be suspended.
 Whether ‘reasonable opportunity’ has been provided to such person
whose IEC is proposed to be suspended.
 Whether officer is competent to permanently suspend IEC in view
of DGFT Notification No. 39/2019 (RE-2013)/2009-2014, dated 29-8-
2013.
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Non-Realisation of export proceeds
(a) If an exporter fails to realize export proceeds within time specified
by RBI, he shall, without prejudice to any liability or penalty under
any law in force, be liable to return all benefits/incentives availed
against such exports and action in accordance with provisions of FT
(D&R) Act, Rules and Orders made thereunder and FTP.
(b) In case an exporter is unable to realize the export proceeds for rea-
sons beyond his control (force-majeure), he may approach RBI for
writing off the unrealized amount as laid down in Para 2.87 of
Handbook of Procedures.
(c) The payment realized through insurance cover, would be eligible
for benefits under FTP as per procedures laid down in Para 2.85 of
Handbook of Procedures.
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EXCISE LAW TIMES  15th July 2020  46