K.L. Rekhi, Member (T)

1. In this appeal, dispute is on the correct value of a consignment of 10.130 Metric Tonnes of Nickel Alloy Tubes Inconel 600 & 601 imported by the appellants in October 1984 against a contract entered into in July 1984. By the impugned order, the Collector held that the appellants were guilty under Section 111(m) of the Customs Act, 1962 for having under-declared the value of the goods at £ 2190.00 per Metric Tonne. Acting under Rule 8 of the Customs Valuation Rules, 1963 (best judgment assessment rule) the Collector re-assessed the value of the goods on the basis of costing at £ 9,439.88 per Metric Tonne. The Collector ordered confiscation of the goods under the same Section and adjudged the fine in lieu of confiscation at Rs. 5 lakhs. In addition, the Collector imposed a penalty of Rs. 1 lakh on the appellants under Section 112 of the Act. The appellants are in appeal against this order.

2. When the matter came up before us first on 8-9-1988, we noticed that though the goods were made of very costly metals, there is no evidence on record as to at what price the manufacturers were selling the goods in wholesale at the relevant time. The appellants had fi