DIRECTOR, ENFORCEMENT DIRECTORATE, MINISTRY OF FINANCE ANDA vs K. O. KRISHNASWAMY

The Supreme Court held that under Section 12(2)(b) of the Foreign Exchange Regulation Act, 1947, the term 'full amount payable by the foreign buyer' refers to the actual price agreed upon for the goods exported, not an inflated invoice amount. The Court clarified that if the exporter has received the agreed contractual price, they cannot be held guilty of contravening the Act merely for showing a higher price in the invoice. The High Court's quashing of the penalty imposed by the Director was upheld, affirming that no violation occurred if the contractual value was realized by the exporter.