JUDGMENT

S.P. Bharucha, J.-Under appeal is the judgment and order of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi. The Tribunal allowed the appeal of the Revenue setting aside the order of Central Board of Excise & Customs and restoring the order of the Collector of Customs, subject to the modification of reducing the quantum of penalty.

2. The appellants were setting up a plant for the manufacture of tyres. They entered into an agreement for the supply of technical know-how, documentation and the like. On the same day they entered into a second agreement which noted that the second party to the agreements, General Tyre International Company, had for many years been engaged and had acquired vast experience in the manufacture of tyres as well as the design, engineering and equipment of plants for the same. The agreement in Article 5 stated, so far as is relevant;

Optional Procurement Services :

5.1 ATL shall have the option and right to call for the services of GENERAL for procurement of any one of more items of equipment, machinery, spares, accessories and raw materials required for the PLANI, which ATL may elect to purchase, and GENERAL shall arrange for obtain