Judgment

R.C. Lahoti, J.-Notice under proviso to sub-section (1) of Section 28 of the Customs Act, 1962 was issued on 13th May, 1985 and served on M/s. Ranadip Shipping & Transport Co. (Pvt.) Ltd., the appellant, (hereinafter RST, for short) and M/s. Sea Land Service Incorporated (the respondent No. 2) (hereinafter SLS, for short) requiring them to show cause why duty amounting to Rs. 37,97,434/- be not levied and recovered from them apart from assessing penalty and other action on account of short levy occasioned by wilful misstatement and suppres­sion of facts by the importers, M/s. RST and their principals, M/s. SLS. It is not disputed that in the transaction in question the appel­lant had acted in the capacity of agent of respondent No. 2. The adjudicating authority, i.e., the Collector of Customs, Bombay by Order-In-Original dated 3.5.1988 held as under :

(1) The chassis should be valued on the basis of the valuation shown in the show cause notice and the demand notice i.e. at the unit price US$ 2,535/- per chassis CIF Bombay. The rate of duty and the exchange should be calculated on the rate prevailing on the date of filing of the 4 Bs/E in respect of the 84 c