JUDGMENT

A.K. Sikri, J.

Civil Appeal Nos. 1633-1638 of 2004

1. In August, 1991, Respondent Nos. 1 and herein imported 2 and 3 containers respectively of alcohol under the description "Undenatured Ethyl Alcohol' (Malt Spirit plus or minus 59.3% Vol.) from an intermediary, M/s. Ravco International Ltd., England (hereinafter referred to as 'RIL' for short). As per the Department, these imports were under invoiced at pound 1.40 per litre whereas the actual price of the said goods was pound 3.78 per litre. This led to issuance of a show cause notice dated 28.09.1992 upon the importers/Respondents herein. It was alleged that the correct transaction value of the imported goods was pound 3.78 per bulk litre and that the goods were imported against invalid licenses. Accordingly, demand of customs duty was raised against Respondent Nos. 1 and 2. It also proposed confiscation of the goods and penal action against the Respondents. The Collector of Customs vide Order-in-Original dated 28.02.1995 upheld the misdeclaration and undervaluation and further held Respondent No. 1 to pay customs duty of Rs. 1,63,74,648/- along with penalty of Rs. 1,64,00,000 and goods to be confiscated. Respondent No. 2 g