UNION OF INDIA Vs. SAIN DITTA MAL

JUDGEMENT

(1.) 120 round pieces of gold are at the centre of controversy in this appeal. Customs authorities seized this gold way back on 6.7.1966 from respondents residence. No steps were, however, taken for its confiscation within the prescribed period under the Customs Act. On the contrary they issued a show cause notice to them for its proposed confiscation and levy of penalty under Rule 126. They replied to this, but Collector passed order dated 13.9.1968 confiscating the gold in question and Imposing a penalty of Rs.10,000.00 each on them. They took appeal against this wherein only penalty was reduced to Rs.4,000.00. They then filed two writ petitions (C.W.266 and 293/1971) and challenged the validity of the action for having been taken beyond prescribed statutory period. Appellants defended this by seeking shelter both under the Customs Act and the DIR. But, controversy still persisted as the Gold Control Ordinance/Act came into force meanwhile Lriggering the issue whether the show cause notice was to satisfy its requirements also. writ Court alternated between abstract legal propositions and eventually allowed respondents writ petitions setting aside the confiscation order and directed return of gold but leaving the imposition of penalty intact.

(2.) Appellants have filed this appeal in 1982 and obtained an interim stay order and as a result this disputed gold remains in their custody.

(3.) when this matter was being considared we found that much water had flowed down since the seizure of the gold in 1966 and even Gold Control Act stood repealed by now. we also noticed that the issue was stuck in an abstract legal stalemate of sorts, and it was still to be explored which set of laws would be attracted to the matter.