JUDGMENT

K. RAMASWAMY, J.:—A short but interesting question of law had arisen in this case. The appellant is a firm which owned three vessels, by name M.V. Fathel Beri, M.V. Fathel Rehman and M.V. Saad Salam. It carries on export of timber, coir etc. to Gulf countries and imported Euphraez Zabdi Dates on return. Out of the amounts payable in Pounds deducting the price for dates, the appellant had fitted 230 H.P. Gardner engine (second hand) to their vessel Fathelbari and 240 H. P. Kalvin engine (second hand) to their vessel Fathel Rehman, which were purchased at the cost of Rs. 50,000/-and Rs. 55,000/- respectively. Out of the amount payable through Nakoda in Basrah, a sum Of Rs. 30,000/- was paid. For the third vessel Saad Salam an agreement was entered into to fit in a second hand engine with M/s. Mohd. Zasim of Kuwait at a price of 2,100 Kuwati Dinars and payable in three annual instalments. The Addl. Director, Enforcement Directorate, Madras adjudicated the proceedings against the appellant and found that the appellant had purchased two engines and got fitted to two motor vessels and agreement to the third engine was also concluded without obtaining the permission of the Reserv