JUDGMENT

OZA, J. : — This appeal on special leave arises out of a Judgment of the Delhi High Court dated 4th April, 1978. The leave is granted on a limited question as regards the question of interpretation of sub-clause (m) of Section 111 of The Customs Act, 1962 (Act for short). The appellants imported 27 knitting machines as the appellant owns a hosiery factory in 1972. The appellants held an import licence for import of knitting machinery.

2. According to the Customs authorities the machinery was not new as the licence permitted to import, but was old reconditioned. The Customs authorities also held that the price shown by the appellant on the basis of invoice was much lower than what the price actually should be. The price shown by the appellant on the basis of invoice was Rs. 77441/- whereas according to the Customs authorities the price came to Rs. 2,98,359/-. On this basis, a show cause notice was issued and after hearing the appellant, the Collector of Customs Bombay by order dated 29-12-73 found that the appellants had committed breach of Section 111 (d) of the Act and also of Section 111 (m) of the Act and for both the counts the penalty was imposed on the appellants. Und