JUDGMENT

S. C. AGRAWAL, J.:—This appeal has been filed under Section 130 E(b) of the Customs Act, 1962 (hereinafter referred to as the Act) against the order dated July 29, 1986 gassed by the Customs, Excise & Gold (Control) Appellate Tribunal (hereinafter referred to as the Appellate Tribunal) whereby the Appellate Tribunal dismissed the appeal of the appellant against the order dated February 24, 1983 passed by the Collector of Customs & Central Excise, -Cochin (hereinafter referred to as the Collector).

2. M/s. Jacsons Thevara, the appellant herein, is a partnership firm. It was originally constituted on January 1, 1973, with two partners, Jacob Punnoose and K.O.Thomas.It was registered as a Small Scale Industrial Unit with the Department of Industries & Commerce of the Government of Kerala, and was manufacturing wooden furniture and flush doors. The firm was reconstituted on January 1, 1974, and two minors, Thomman Jacob and Phili Jacob, were admitted to the benefits of the partnership. The reconstituted firm started manufacturing decorative Veneers of 3 mm thick by manual sawing operations. In July 1978, the appellant decided to diversify its business by manufacturing sophisticated decorative Veneers of thinner varieties and they decided to import a Horizontal Veneers Slicer and spares from Japan. The appellant obtained an import licence dated February 14, 1979, for the CIF value of Rupees 8,70,413 / - bearing a specific endorsement 1 "Project Import" from the Deputy Chief Controller of Imports & Exports, Cochin. After obtaining the, said licence, the appellant placed orders with the foreign supplier in Japan and opened a Letter of Credit on April 12, 1979. Since the financial resources of the appellant were not quite adequate to meet the financial commitments required for importation of the machinery as well as for purchase of raw materials, the appellant consulted Mr. T. K. Jacob and his wife Mrs. Sally Jacob, the parents of the two minor partners who had financial interests in the appellant and as a result of the said deliberations a private limited company M/s. Jacsons Veneers & Panels Private Limited (hereinafter referred to as the Company) was incorporated under the Cornpiknies Act, 1956 on June 6, 1979. The said Company was also registered as a Small Scale Industry with the Directorate of Industries & Commerce, the Government of Kerala. On July 14, 1979, the partners of the appellant passed a resolution where by it was mutually agreed and resolved that the business herein to run under the name of the appellant be transferred with all its assets and liabilities together with import licences, permits, quotas, factory licences, leasehold rights, telephone connections etc., and for this purpose to enter into an agreement with the appellant. These resolutions were followed by an agreement dated July 31, 1979 executed by Mrs. Sally Jacob, Managing Director of the Company and Jacob Punnoose and K. 0. Thomas, partners of the appellant. Under the said agreement the Company agreed to take over and the appellant agreed to hand over the business run by the appellant. as a going concern with the assets and liabilities described in Schedule-A to the agreement and it was also agreed that the appellant shall transfer the import licences, permits, quotas, factory licences, leasehold rights, telephone connections etc. described in Schedule-B to the agreement to the Company and the Company agreed to pay to the appellant a net consideration of Rs. 38,587.52 paise. After the execution of the said agreement a joint application dated August 31, 1979 was submitted by the appellant as well as the Company before the Deputy Chief Controller of Imports & Exports, Ernakulam for approval for transfer of business of the appellant to the Company and for transfer of import licence dated Feb. 14, 1979 issued in favour of the appellant. The said application was based on the agreement dated July 31, 1979. In the meanwhile, on July 31, 1979, the good