NARAYAN PRASAD DUTTA Vs. COLLECTOR OF C E

JUDGEMENT

(1.) The application is directed against the order dated 24th April, 1986 of the Tribunal rejecting the prayer of the petitioner to redeem offending gold on payment of redemption fine. The facts leading to this application are stated hereinafter.

(2.) The first petitioner carries on business, inter alia of husking mill building materials at Dwarhatta in the district of Hooghly, West Bengal. The second petitioner is the wife of the first petitioner. The father of the first petitioner carried on business in gold at Sonapatti, Burrabazar, Calcutta. But the first petitioner is stated to have never dealt in gold. The father of the first petitioner died in the year 1930 when the first petitioner was only 2 years old. Before his death, the father of the first petitioner kept some gold bars with his mother. The first petitioner occasionally lends money to relatives against deposit of gold ornaments for which the first petitioner maintained a separate account. In or about 1973 the mother of the first petitioner gave the said gold bars to him for keeping the same in India Safe Deposit Vault Co. Ltd. at No. 2, Brabourne Road, Calcutta for safe custody. The first petitioner kept the said gold bars weighing about 1575.100 grams in the locker of the aforesaid vault.

(3.) On February 22,1975 the Gold Control Authorities searched the said locker and seized the gold bars alongwith some assorted gold ornaments and articles. On the basis of the said search and seizure a show cause notice dated August 16,1978 was issued by the Collector of Central Excise inter alia directing the first petitioner to show cause as to why primary gold articles and ornaments should not be confiscated Under Section 71 of the Gold (Control) Act, 1968 (hereinafter referred to as the said Act). The first petitioner duly replied to the said show cause notice and a personal hearing was given thereafter to the first petitioner. The Collector of Central Excise by an order dated August 19,1976 held that the gold bars were obtained by melting smuggled foreign biscuits and the petitioners were indulged in clandestine dealing of gold. The Collector confiscated the gold bars Under Section 71 of the said Act. An option was however given to , the petitioners to redeem the seized gold articles and ornaments Under Section 73 on payment of fine of Rs. 10,000/-. The Collector also imposed penalty of Rs. 20,000/- on both the petitioners.