The proviso to Section 118 of the Patents Act, 1970 provides that, in case of contravention of Section…

The proviso to section 118 excludes punishment for a breach of section 39 where, "in the opinion of the Central Government, the invention was not relevant for defence purpose or atomic energy at the time of such contravention". The decision rests with the Central Government, not with the Controller, and withdrawing the foreign application does not by itself excuse the breach.