SUMITRABEN RAMUJILAL VYAS Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioners challenged the legality and validity of the order passed by the Collector of Central Excise, Baroda, on March 16, 1974, which has been confirmed by the Gold Control Administrator on Gold Control Appeal and also by the Government of India in revision.

(2.) Officers of the Income Tax Department had searched the residential premises of petitioner No. 1 - Smt. S. R. Vyas and had also searched the locker in the Central Bank of India jointly operated by petitioners No. 1 and 2. The search was carried on from July 29 to July 31, 1972. In the search, gold weighing 8662.300 gms. was recovered. Out of this, gold ornaments weighing 536.00 gms. were returned on the spot and rest of the gold and gold ornaments, i.e., 8126.300 gms. was seized under a Panchnama. Thereafter the said gold and gold ornaments were seized by the officers of the Central Excise Department and a regular Panchnama thereof was drawn. Statements of petitioner No. 1 and petitioner No. 2 were recorded. Show cause notice dated December 30, 1972 was issued to both petitioners No. 1 and 2. Petitioner No. 1 inter alia contended that the residence was being used as a religious place by a group of people following "Moksh Margi Sampraday". That the gold in question was not that of 24 ct. purity and they were ancestral ornaments. It was also contended that the gold was in possession of their family since days of her father-in-law, i.e. Shri Vallabhram, who died somewhere in the year 1925. Petitioner No. 1 also submitted that there are other members of the family who had share and interest in the gold and gold ornaments seized by the department. Petitioner No. 2 also submitted reply but he, in short, submitted that he was the administrator, managing the affairs of the family of petitioner No. 1 and had no interest whatsoever in the gold and gold ornaments seized.

(3.) The Collector of Central Excise, Baroda heard petitioners No. 1 and 2 and considered the reply submitted by them. Thereafter he passed an order dated March 16, 1974, holding that the charge under Sections 8(1) and 16 of the Gold (Control) Act, 1968, levelled against petitioners No. 1 and 2 was proved. After considering the Panchnama and other records, the Collector of Central Excise, Baroda held that there were 5 "Kadas" of gold each one of them was weighing as follows :