The court's decision was influenced by the provisions of the Sea Customs Act regarding under-valuation, confiscation, and imposition of fine.

( 1 ) THE appellant in this Letters Patent Appeal had obtained a licence for the import of the odolite. On 27th May, 1961 indents were placed on the foreign exporter, M/s Kovo through their agents in India, M/s Manohar Lal and Company. The intents were for 250 pieces of the odolites. The consignments were received in two lots. The first lot of 125 pieces was received and cleared. In May, 1962 the second lot of 125 pieces was received but was not cleared. The clearance was refused because according to the Customs Authorities the consignment had been underalued.

( 2 ) IT appears that the Customs Authorities carried out search in the premises of M/s Manohar Lal and Company on 5th May, 1962 In respect of the first consignment of 125 pieces which had been cleared proceedings were initiated under Section 167 (8) of the Sea Customas Act, (hereinafter referred to as the Act ). Proceedings were also initiated with regard to the second consignment. On 19th June, 1964 two orders were passed being No. 40 and Order No. 41 in respect of the first and the second consignments respectively. By the said orders, the said consignments were ordered to be confiscated and in lieu thereof opportunity was given to get the goods released on payment of fine. In the appeals, which were filed, the same were partly accepted and by order dated 28th March, 1967 the fine was reduced to Rs. 1,70,000. 00. Not being statisfied with the appellate order, the appellant filed revision 683