P.C. Jain, Member (T)

1. Brief facts of the case are as follows :

1.1 The appellants herein imported GPZ brand of bearings No. 10777/670 valued at Rs. 7,50,000/- c.i.f. The value per piece of bearing was at the rate of Rs. 50.000/-. However, subsequently, the information regarding price list was obtained by the Custom House from the Agent in India of the suppliers that according to the current price list the value per piece of bearing was Rs. 1,79, 631.76 as against the declared value of Rs. 50,000/-. Accordingly, a show cause notice dt. 18-3-1988 was issued to the appellants alleging under-valuation to the extent of Rs. 19,43,446/- and duty evasion to the extent of Rs. 28,37,432/-. Further the appellants sought clearance of the goods under OGL Appendix-VI, Serial No. 46 of ITC Policy for April-March, 1985-88. As per provisions of the said serial number only those items are permitted to be imported by all persons which are used in :

(i) Printing Machinery

(ii) Machine tools for cutting, forming, abrading and polishing, metals, wood, glass and plastic including any standard of ancillary equipment;

(iii) Cinematographic equipment.

1.2 The case was adjudicated by the Collector of