Judgement

SHELAT, J.: On March 31, 1959 the respondents obtained a licence to import certain machinery from West Germany. The import licence contained particulars of the machinery to be imported and inter alia stated that its value would be "C.I.F. value of Rs. 45,000. One of the conditions upon which the licence was issued was that

"The above application is accepted and import licence is granted having quantity and value as the limiting factor and is not valid for clearance if the actual value of any item exceeds the C.I.F. value indicated in the licence by more than five per cent

2. The machinery arrived at the port of Calcutta sometime in July 1960 and was allowed to be cleared on the bill of entry submitted on behalf of the respondents. The bill of entry showed the CIF value of the machinery at Rs. 44,843. 61 nP. The customs authorities thereafter assessed the duty payable on the said machinery and the duty so assessed was paid by the respondents. On May 6, 1961, in consequence of certain information received by the authorities a search was made of the business premises of the respondents and also of Stahlumon and Co. Ltd. the agents of the exporters. As a result of the search cer