HARI SARAN VERMA Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition is filed questioning the legality and validity at the order passed by the Collector, Central Excise, Kanpur on 27.5.1991 under the provisions of the Customs Act and the Gold Control Act.

(2.) On the basis of credible information received, the officers of D.R.I., New Delhi intercepted and searched the two petitioners on 11.10.1988 at Mathura Railway Station and recovered from them, in all, 100 foreign gold biscuits. Their statements were recorded on that occasion and subsequently their residential and business premises were also searched. On the basis of the material gathered a show cause notice was issued to both the petitioners on 29.3.1989 calling upon them to show cause why the said gold should not be confiscated and why the penalties should not be imposed under the aforesaid two enactments. In response to the show cause notice the petitioners submitted their explanations which were considered and under a very elaborate order, the Collector, Central Excise, Kanpur passed the order, the operative portion of which reads thus:

(3.) This writ petition was filed on 20.8.1991. The main contention urged by Sri Raj Pal, the learned Counsel for the petitioners runs thus: