GUNWANTLAL GODAWATS Vs. UNION OF INDIA & ANOTHER

JUDGEMENT

(1.) On 3rd and 4th June, 1965, the residential premises of the appellant's father were searched by the officers of the Government of India in exercise of the authority conferred upon them under Rule 126L(2) of the Defence of India Rules, 1962[1*] (hereinafter referred to as "the RULES"). They found 240 kilograms of gold (bars etc.) buried in the house and seized it. Proceedings for confiscation were initiated. Eventually on 24.9.1966, the Collector of Central Excise and Customs passed an order[2*] confiscating the seized gold in exercise of the power under Rule 126M of the RULES on the ground that the seized gold was held by the appellant in contravention of Rule 126-I. A penalty of Rs. 25 lakhs under Rule 126L(16) of the RULES was also imposed.

(2.) Aggrieved by the same, an appeal was carried by the appellant's father before the Gold Control Administrator which was dismissed on 6.3.1972. The matter was carried further in a revision before the Government of India which was also dismissed on 4.6.1979. The decision of the Government of India was challenged in a writ petition (No.1215/79) before the Rajasthan High Court. By a judgment and order dated 9.8.1994, the Rajasthan High Court allowed the writ petition.

(3.) It appears from the said judgment that two submissions were made before the High Court, (i) no personal hearing was given by the Collector to the appellant's father before the order of confiscation was passed though a show cause notice dated 3.2.1966 was issued proposing confiscation and penalty under Sec. 126M and 126L(16) of the RULES respectively, and (ii) An opportunity to redeem the seized gold was not given.