Judgment

THAKKAR, J.:- Whether S. 12(2)* of Foreign Exchange Regulation Act of 1947 (Act) designed to prevent wholesale or partial evasion of repatriation of earnings from export of goods covers only sale proceeds of goods exported "for sale" as held by the High Court of Calcutta by the judgment under appeal, or to sale proceeds of goods exported "on sale" in the context of sales completed before export also, as held by the Madras High Court R. Venkatasubbu v. Director of Enforcement, Enforcement Directorate, New Delhi, ILR. 1968) 3 Mad 18 and as contended by the appellants is the problem.

*"12(2) Where any export of goods has been made to which a notification under sub-sec. (1) applies, no person entitled to sell. or procure the sale of the said goods shall, except with the permission of the Reserve Bank, do or refrain from doing anything or take or refrain from taking any action which has the effect of securing that -

(a) the sale of the goods is delayed to an extent which is unreasonable having regard to the ordinary course of trade, or

(b) payment for the goods is made otherwise than in the prescribed manner or does not represent the full amount payable by the foreign buyer in resp