D.C. Mandal, Member (T)

1. The appellants imported 2 consignments of 232 cartons containing 60,000 gross sets declared as "Metal fittings rivets (rivets for leather goods)" and filed 2 bills of entry No. 5770 and 5771, both dated 27-12-1988 for their clearance. Declared CIF value was Rs. 1,59,1987/- in each consignment, total coming to Rs. 3,18,396/-. The Department alleged that the appellants had actually imported snap fasteners consisting of 4 pieces, i.e. top, socket, stud and post, of 3 different sizes VT2, VT3 and VT5, of "swallow-RK" brand and had split up the importation into two consignments as detailed below:-

It was alleged that the snap fasteners were imported in two consignments by misdeclaring the goods as rivets with a view to evading customs duty and clearing the goods against REP licence for rivets. The appellants had REP licence for rivets, but did not have licence for snap fasteners. Under Notification No. 224/85 dated 9-7-1985 as amended by Notification No. 290/87 decorative rivets were exempted from duty in excess of 40% plus 5% ad valorem with Nil additional duty of customs, whereas the duty on snap fasteners was 100% + 45% ad valorem plus 15% additional dut