JUDGMENT :

M/s. Surjan Singh Balbir Singh had obtained four licences bearing Nos. 3082282 dated June 24, 1986, 3160049 dated August 5, 1986, 3051479 dated March 18, 1985 and 3158010 dated June 30, 1986. The said licences were issued under Appendix 21 of Import Policy 1985-86 with an endorsement - Duty free imports against Replenishment of Licence. The said licences were first transferred by M/s. Surjan Singh Balbir Singh in favour of M/s. Chakradhar International India who transferred the same in favour of Sneh Sales Corporation, respondent No. 1 herein. On the basis of the said licences respondent No. 1 imported two consignments of Polyester filament yarn from Japan. One consignment consisting of 509 cartons was cleared through the Inland Container Deport (ICD), New Delhi against Bill of Entry No. 1974 dated October 31, 1986 and the second consignment consisting of 132 cartons was cleared through ICD, New Delhi against Bill of Entry No. 1906 dated October 23, 1986. The goods were assessed under Section 17 of the Customs Act, 1962 [hereinafter referred to as `the Act'] and were allowed clearance for home consumption under Section 47 of the Act. After clearance the goods were despatc