Per S.S. Sekhon : Appellant is engaged in manufacturing of Quartz Analogue Watches. They import watch components, movements, for the said activity & placed orders with one M/s.. Ravi Diffuser, Goods were despatched by Air Cargo and B/E was filed in Ahmedabad for clearance under a Quantity Based Advance License on Release Advise obtained from Kandla Custom House.

2. On examination, the goods were found to be not as per the invoice. By letters dated 14.03.98 & 17.3.98, the supplier explained that the goods were an incorrect shipment.

3. Since only components and raw materials i.e. 10,000/- pieces of Quartz Analogue Watch movements like button cell, hour wheel key stem, fixing washer, handset, cases, dial, knobs and metal bands separately were permissible for import and as goods under import was found to be complete watches and clocks in SKD condition & the 14 pcs. of Mechanical Movements imported, they were not permissible to be imported without a licence, the clearance of benefit of Notfn. No. 149/95 duty free against the license produced was alleged to be not available & for the act of their import the appellant was liable & goods for action under Section 111 (m) & 111 (d).

4. Th