Rajagopala Ayyangar, J.-This is an appeal against the judgment of Panchapakesa Ayyar, J., allowing in part an application filed under section 45 of the Specific Relief Act and issuing a writ in the nature of mandamus directing the Collector of Customs, Madras to release 12 diesel-engines belonging to the respondent (applicant in the application) and imported by him on the respondent’s paying the entire customs duty payable on the value of the engines plus 12½ per cent. of the entire value of the goods and setting aside the order of confiscation which has been passed by the Customs authorities in respect of these engines. The Collector of Customs has filed this appeal while the respondent who filed the application for the writ of mandamus has filed a memo. of cross-objection in which he has prayed that the learned Judge should not have imposed a fine of 12½ per cent. on the value of the goods which the learned Judge made a condition for their clearance.

The facts giving rise to these proceedings are briefly these: The applicant for the writ of mandamus is a firm of importers by name Lala Gopikissen Gokul Dass. A public notice of the Government of India, Ministry of Commerce, dated nth September, 1950, was issued inviting the attention of the importers to the fact that the Government had decided to allow the import of diesel-engines falling under Serial No. 30 from all sources of import on the basis set out in the said notice during the period July to December, 1950. This notification after classifying established importers into two categories, went on to state in para. 3:

“3. Licences for diesel-engines will be granted under separate quotas for imports from the dollar area, Switzerland, Japan and the soft currency area respectively. Each such quota will be calculated in the manner noted down in Public Notice No. 14 I.T.C. (Pn.)/50, dated the 15th June, 1950 on the basis of the quota percentages stated below as applied to half of best years imports of diesel-engines and parts thereof falling under Serial No. 30 of Part II of the Import Trade Control Schedule.

(a) Approved Importers: Quota.

(i) Diesel engines of 0 to 10 h.p. 100%

(ii) Diesel engines of 11 to 20 h.p. 10%

(b) Others:

(i) Diesel engines of 0 to 10 h.p. 33 1/3%

(ii) Diesel engines of 11 to 20 h.p. 5%”

and in para 4 which is the relevant clause for this case

“It has further been decided that licences for imports of diesel-engines of more than 20 h.p. will be granted freely from all sources.”

Messrs. Turner Hoare and Company Ltd., who were one of the main importers of diesel-engines into this country and with whom the respondent-firm had dealings, approached Mr. Phansi, Principal Appraiser, Machinery Department, Customs House, Bombay and made an enquiry as to whether National Gas &38; Oil Engine Company’s horizontal engines of OB or OBSE type rated at 20/22 b.h.p. fell within paragraph 4 of the Ministry of Commerce Circular referred to above. The firm was orally assured that it was so and desiring to have a confirmation in writing despatched a letter dated 19th October, 1950 to the Assistant Collector of Customs setting out this information. The firm also stated that these engines of the National Gas and Oil Engine Company had hitherto been imported as 20/22 b.h.p. and no alterations in design had been made since the new import regulations. They further requested a confirmation in writing to enable them to cable their indents to the makers. A formal reply dated 15th November, 1950, was received by this firm in which it was stated that the oil engines of the type OB or OBSE 20/22 h.p. could be imported against the licence for diesel-engines above 20 h.p. Relying upon the oral assurance to Messrs. Turner Hoare and Company of which they were informed the respondent-firm applied for the grant of two import licences authorising them to import diesel-engines above 20 h.p. The licences were granted by orders dated 26th October, 1950 and 11th November, 1950 by the office of the De

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