S. Kalyanam, Member (J)

1. This appeal is directed against the order of the Collector of Customs, Madras dated 15.4.1986 imposing a fine of Rs. 20,000/- under Section 125 of the Customs Act, 1962, hereinafter referred to as the Act.

2. The appellant herein filed a shipping bill No. 3608 dated 29.11.85 at the Madras Customs House for export of 23 bundles containing 5560 pieces of Full Chrome Goat Suede lining finished leather valued at Rs. 1,95,867/- FOB. The exporters have furnished a declaration in the shipping bill that the goods sought to be exported were covered by Item e(2)(ii) of 15:8170/79 and entitled to be cleared duty free. Government of India, Ministry of Finance, Department of Revenue Notification No. 333-Cus. dated 2.8.1978 as amended by Notification No. 282/85-Cus., dated 30.8.1985 exempts finished leathers of goat, sheep and bovine animals and their young ones, when exported out of India from the whole of duty of customs leviable thereon under the Second Schedule to the Customs Tariff Act, 1975 w.e.f. 1.9.85 when they satisfy the standards as specified for such finished leathers by the Indian Standards Institution in IS: 8170/79. The shipping bill was assessed to