( 1 ) THE facts in this case are briefly as follows : The petitioners carry on business in Calcutta under the name and style of "mahadayal Premchandra". The said firm was granted a licence by the Government of India in 1958 for the importation of cotton fabrics etc. , from the soft currency areas including Japan. Under the said licence, the petitioners imported from Japan about 6800 yards Black Cotton Umbrella cloth 888 (Synthetic waterproof fabric) to Calcutta. The goods arrived per s. s. "eastern Muse" on or about 26th June, 1959. They had the manufacturer's certificate stating that the goods were synthetic waterproof fabrics. On or about the 26th June, 1959 the petitioners made over the shipping documents to their clearing agents M/s. Mitra Shipping Agency, for clearing the goods. On the same day, the clearing agents filed the bill of entry for consumption, together with the bill of lading, bill of exchange, invoice and other necessary shipping documents, for clearance of the said goods on behalf of the petitioners. Even before the petitioners placed their order for the importation of the said goods, they had taken the precaution of writing through their clearin