Per Justice K. Shreedharan :

These appeals have come up before this larger Bench on a reference made by a Bench of two Members. Appellants imported drawings, designs, plans, etc. from M/s Zimmer AG, Germany, under an agreement for transfer of technology for the purpose of setting up a plant to manufacture polyester, polyester filament yarn and Polyester staple fibre. Commissioner of Customs, New Delhi, found the goods as classifiable under Customs Tariff Heading 4911.99 "other printed matters not elsewhere specified or included under Chapter 49. "in this view, the goods imported were valued at DM 32,66, 900.00 equivalent to Rs. 7,50,61,438.00 and imposed duty thereon. The Commissioner took the view that the goods are liable to be confiscated, but they are not available for confiscation in the case. Consequently, he imposed a penalty amounting to Rs. 5 lakhs each on three of the Directors of the Company. This action of the department is under challenge in these appeals.

2. Case put forth by the Company is that the imported materials are printed books which are to be classified under Heading 49.01 of the Customs Tariff Act, 1975 as they are books containing technical knowledge. T