RAM SINGH MANMOHAN SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition, the petitioner challenged the authority of the Assistant Collector (Preventive). Central Excise Collectorate, Chandigarh, to issue warrants for the search of the house of the petitioner, and the competency of the Deputy Collector to order confiscation of ornaments or to impose the personal penalty.

(2.) The circumstances leading to the search of the premises of petitioner no. 2 and the consequent recovery of the gold ornaments are not in dispute, 0n 27th September, 1974, armed with the authority of the search warrant issued by the Assistant Collector (Preventive) Central Exese Collectorate, Chandigarh, Shri Kishan Singh Inspector, Customs & Excise conducted the search of the house of the petitioner in the presence of two witnesses. He prepared the Panchnama (Ex. P-1). On that very day, the statement of S. Ram Singh, petitioner no. 2 was recorded. On 18th February. 1975. the Debuty Collector of the Central Excise issued notice to the petitioner to show cause as to why the said 633 grams of gold ornaments be not confiscated u/s 71 of the Gold Control Act, 1968 and a penalty be imposed for the contravention of Section 6(2), 16(7) and 27(7)(b) of the Gold Control Act. 1968. The petitioner sent t?is reply alleging therein that a total number of 26 items weighing 377.400 groms out of the seized gold ornaments benloged to various persons who had pawned the same with the petitioner. These ornaments, even though ware pawned only 213 days prior to their seized but the entries could not be posted in 'Ghirvi Register' though the same existed in the daily cash book. The remaining ornaments had been delivered to the petitioner at his residence on the evening of 26th September, 1974 for minor repairs by one Darshan Singh and others of Patiala. All the gold items thus, are not liable to seizure. In support of the reply, the affidavits of the persons who had powned the jewellery items and the person who had come for repairs were attached.

(3.) The learned Deputy Collector of Customs and Central Excise was not satisfied with the explanation and by order dated 3rd September, 1976, seized and confiscated the gold ornaments u/s 71 of the Gold Control Act. for the contraveation of Section 6(2), 16(7) and 27(7)(b) of the Gold Control Act, 1968 (hereinafter referred to as the Act). The petitioner, however, was given the option to redeem these ornaments on payment of redemption fine of Rs. 10,000. A personal penalty of Rs. 5000 was also imposed on the firm M/s. Ram Singh Manohar Singh Gold Jewellers u/s 74 of the Act.