JUDGMENT

BHARUCHA, J.—This is an appeal by special leave against the judgment and order of the Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as CEGAT). The order which granted special leave expressly confines it to the question whether a member of CEGAT sitting singly could in law have heard the appeal before it.

2. The appellant was granted an advance import licence for the import of crude emetine under a duty exemption scheme (C.E.E.D.) which required the appellant to export the goods after processing them. The goods that were imported by the appellants were found, on chemical analysis performed at the request of the Customs authorities, to contain emetine hydrochloride, moisture and other impurities. The Additional Collector of Customs held that the goods imported being emetine hydrochloride, the licence was not valid for the same. Inasmuch as the importation had been made without the cover of a valid licence, an offence under Section 11 1(d) of the Customs Act, 1962 (hereinafter called the said Act) read with Section 3 of the Import and Export (Control) Act, 1947 was established against the appellant. He ordered thus:

"Taking all the circumstances into account and in view of the fact that this is not an importation for individual sale and profit in India, but an importation under D.E.E.C. Scheme which importers are bound to re-export Emetine Hydrochloride, B.P. Grade, I take a lenient view and order that the goods in question shall be confiscated under Section 111(d) of the Customs Act, 1962 read with Section 5 of the Import and Export (Control) Act, 1947. I, however, allow under Section 125 of the Customs Act, 1962, an option to pay in lieu of such confiscation a fine of Rs 10,000 (rupees ten thousand only) and clear the goods into town."

There against the appellant preferred an appeal to CEGAT and it was listed for hearing before a member thereof, sitting singly. The appeal was rejected and the Additional Collectors order confirmed.

3. Learned counsel for the appellant submitted that this was a case which involved the determination of a question having a relation to the rate of customs duty applicable to the said goods and that, therefore, it could not have been heard by a member of CEGAT sitting singly but ought to have been heard by a Special Bench thereof, in which behalf he drew our attention to the provisions of Section 129-C of the said Act. Learned counsel for the respondent submitted, on the other hand, that no question having relation to the rate of customs duty had been determined by the order of the Additional Collector and that, therefore, it was not a matter that could only have been heard by a Special Bench of CEGAT. Since this was a case, in his submission, which fell within the ambit of clause (c) of sub-section (4) of Section 129-C it was, rightly, listed before and decided by a member of CEGAT sitting singly.

4. The relevant portions of Section 129-C need to be reproduced.

"129-C. Procedure of Appellate Tribunal.- (1) The powers and functions of Appellate Tribunal may be exercised and discharged by Benches constituted by the President from amongst the members thereof.

(2) Subject to the provisions contained in sub-sections (3) and (4) a Bench shall consist of one judicial member and one technical member.

(3) Every appeal against a decision or order relating, among other things, to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment shall be heard by a Special Bench constituted by the President for hearing such appeals and such Bench shall consist of not less than two members and shall include at least one judicial member and one technical member.

(4) The President or any other member of the Appellate Tribunal authorised in this behalf by the President may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a member where-

(a) the value of the goods confiscated wi