(1) THIS appeal is directed against the judgment of the Customs, excise and Gold (Control) Appellate tribunal (hereinafter referred to as the tribunal) dated 31/12/1991 whereby the ap- peal filed by the appellant against the order dated 10/07/1989 passed by the additional Collector of Customs, New Delhi was dis- missed. By his order dated 10/07/1989 the Additional Collector of Customs had di- rected confiscation of the goods covered by Bill of Entry No. 104090, dated May 24, 1988 of synthetic rags and serviceable gar- ments absolutely under Ss. 111(d), 111(f), 111(i), 111(1, 111(m), 111(e) as well asun- der S. 119 of the Customs Act, 1962 (here- inafter referred to as the Act) and had also imposed a personal penalty of Rs. 7 lakhs on the appellants under S. 112(b) of the Act.

(2) ON 24/05/1988 M/s. Arbindo Wool- len Mills filed a Bill of Entry for clearance at Inland Container Depot (ICD) Customs, Pragati Maidan, New Delhi. Along with the said bill of Entry the said M/s. Arbindo Mills gave a declaration for importing the goods under open general licence saying that they are registered with the authorities in Kanpur as a small scale industry and that their reg- istrat