BHOLANATH KARMAKAR Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS Rule is directed against a Show-cause notice dated 9th December, 1968 issued under Section 79 of the Gold Control Act, 1968 and the order of confiscation and penalty dated 22nd October, 1969 passed by the Collector of Central Excise, calcutta and Orissa under Sections 71 and 74 of the Gold Control Act, 1968.

(2.) PETITIONER carries on business as a jeweler in the name and style of "ms. Gunea House" at Alamganj Ghatal in the district of Midnapore. He holds a licence, the number of which is 672/gold (63 ). On 6th of May, 1968, some officers of the Central Excise Department visited the shop of the petitioner and seized there from primary gold and gold ornaments as per details mentioned in the Panchnama, Annexure 'a' to the petition. By a letter dated 13th of May, 1968 the petitioner was asked to give oral and writ ten evidence in the enquiry relating to the aforesaid seizure. That notice was given pursuant to Rule 126l of the Defence of India (Amendment) Rules, 1963. There after, on 9th December, 1968, the petitioner was called upon to show-cause why the seized primary gold and the ornaments should not be confiscated under Section 71 of the Gold Control Act, 1968, read with Section 116 of the said Act and why a penalty under Section 74 of the said Act read with Section 116 thereon should not be imposed. In that show-cause notice it was stated that the petitioner contravened the provisions of Sections 29 and 55 read with Sections 32 and 33 of the Gold Control Act, 1968 corresponding in 126b, 126g (i) and 126 (ii) (bb) (i) of the Defence of India Rules, 1982 Part X11a. Thereafter, the petitioner showed cause and the Collector of Control excise, Calcutta and Orissa by his order dated 22nd October, 1969 confiscated primary gold weighing 442. 900 GMS and the remaining quantity of gold ornaments weighing 1370. 260 gms. under Section 71 of the Gold Control Act, 1968. The petitioner was, however, given an option to take release of the confiscated gold and gold ornaments on payment of a fine of Es. 5,000/- in lieu of confiscation. The Collector also imposed a penalty of Rs. 1,000/- upon the petitioner under Section 74 of the said Act.

(3.) THE petitioner being aggrieved by the aforesaid show-cause notice, the confiscation of gold and imposition of personal penalty, moved this Court Hinder Art, 226 of the Constitution and obtained the present Rule on 22nd of december, 1969. An interim injunction was also granted by this Court restraining the respondents from giving effect to the impugned order of punishment both of the fine of Rs. 5,000/- and penalty of Rs. 1,000/ -. The operation of the order of confiscation was also stayed pending the hearing of the Rule. The respondents were directed to hold the gold pending the hearing of this Rule.