1. A show cause notice dated 10-6-1964 was issued to the petitioner by the Assistant Collector of Customs and Central Excise, Cochin-3, proposing to confiscate 258 wrist watches. Ext. P-1 is the notice. The notice also stated why action should not be taken against the petitioner under S.112 of the Customs Act, 1962, for being knowingly concerned in the offence of unauthorised importation of the aforesaid

watches. The petitioner submitted his explanation on 15-6-1964. (Ext. P-2). The Collector of Customs and Central Excise, the 1st respondent, passed Ext. P-3 Proceedings by which he confiscated the watches, and imposed a penalty of Rs. 2,500/- on the petitioner for being knowingly concerned in the commission of the offence. The petitioner appealed to the 2nd respondent. As the appeal was not accompanied by deposit of the penalty the appeal was dismissed on that ground.

2. The case against the petitioner was that he was concerned in the importation of 258 wrist watches from Singapore to Cochin through Mr. M. K. S. Nair, who at the relevant time was the Chief Petty Officer in I. N. S. Thrisul, that the said watches were entrusted to Mr M. K S. Nair at Singapore by the petit