V.T. Raghavachari, Member (J)

1. The appellants, M/s. Automotive Enterprises, Bombay, imported two consignments of bearings of various sizes from the United Kingdom, the suppliers being M/s. Harvin Exports, London. They were main bearings with Part No. AJH 5285 and connecting rod bearings Part No. AJH 5286, prices respectively being shown as-

£ 0.58 and £ 0.69 FOB

When the goods were examined they were found to be Glacier Brand bearings. The department issued a show cause notice dated 18-2-1978 pointing out that the price list dated 7-2-1977 prevailing at the time of importation as supplied by the Authorised Indenting Agents M/s. Overseas Manufacturers Sales Company, Bombay, showed the correct prices for the main bearings and connecting rod bearings to be respectively-

£ 1.37 and £ 1.19

It was therefore charged that the appellants had misdeclared the value, rendering the goods liable for confiscation under Section 111(d) and(m) of the Customs Act read with Section 3(2) of the Import and Export (Control) Act, 1947. The appellants were called upon to show cause against such action being taken and also for payment of duty at the value suggested.

2. The appellants under their reply date