COMMR. OF C. EX. Vs. RAMRATAN SHRIVALLABH CHANDAK

JUDGEMENT

(1.) THE present Reference has a chequered history. On the basis of the information received by the concerned authority under the Gold (Control) Act, 1968 search was conducted in the residential premises of Shri Ramratan Shrivallabh Chandak (since deceased) on 25 -3 -1974. The search continued for three days. During the course of the search, the primary gold was found in the almirah kept on the room of the second floor. In the first compartment of the almirah, 18 gold foils weighing 49.30 grams were found. At the base of this almirah, there was a drawer but that did not contain any incriminating material. The drawer was completely pulled out and it was found that there was a cavity in between the base of the drawer and the base of the almirah. In the cavity, Kalyan magazines were found lying and upon removal of these magazines one Dabba containing three cartons of Cuticura shaving sticks were found. Each carton of Cuticura shaving stick contained four gold slabs, i.e. total 12 gold slabs weighing 3730.800g. were found. In the cavity, a cotton cloth bundle containing 13 gold rods in the shape of Kadas weighing 1326.800g. were also found. These articles were seized and panchnama was drawn. On 28 -3 -1974 Ramratan Shrivallabh Chandak was asked to make a statement but he expressed his inability for not being well. A notice was issued to the said Ramratan to show cause as to why the seized primary gold be not confiscated under Section 71 of the Gold (Control) Act for contravention of Section 8(i) and 16 of the said Act. The said Ramratan was also prosecuted under Section 8(i) and Section 16 read with Section 85(ii) of the Gold (Control) Act, 1968.

(2.) IN response, Ramratan filed reply to set up a case that he had no knowledge that the gold was kept in the almirah. His case was that gold was presumably kept by his mother, who had never informed about the said gold. Vide order dated 16 -7 -1974 the Central Excise Collector ordered absolute confiscation of the aforesaid material. A penalty of Rs. 5 lakhs was also imposed under Section 74 of the Act. Being aggrieved by the said order, Ramratan preferred an appeal. The Appellate Authority by order dated 27 -3 -1976 set aside the order dated 16 -7 -1974 being in violation of principles of natural justice and remanded the matter back to the Collector.

(3.) BEING aggrieved thereby, Ramratan preferred an appeal before the Gold Control Tribunal. The appeal was dismissed on 12 -12 -1976. Aggrieved by the said orders, Ramratan made an application to the Central Government under the then existing Section 82 of the said Act. However, the said application came to be transferred to the Tribunal. During the pendency of appeal before the Tribunal, Ramratan died and his legal representatives were brought on record.