Foreign Trade (Regulation) Rules, 1993
1. The adjudicating authority may determine the amount of settlement to be paid by the person to whom a notice has been issued and who has opted for settlement, and has admitted the contravention specified in the notice, in the following cases, namely:-
i. where it is of the opinion that the contravention of any provision of the Act or these rules or the policy has been made without mens rea or without wilful mistake or without suppression of facts, or without any collusion, or without fraud and forgery, or without an intent to cause loss of foreign exchange ; or .
ii. where the person importing the goods has not met the requirements of the actual user conditions as specified in the policy and has not misutilised the said imported goods; or
iii. where the person importing the goods has not fulfilled the export obligation and has not misutilised the said imported goods.
2. Where a person has opted for settlement under sub-rule (1), the settlement made by the adjudicating authority shall be final.