JANKI SINGH Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) In this writ application, the petitioner has prayed for quashing orders of confiscation of gold and gold ornaments and imposition of penalty of the Collector of Central Excise, Patna dated the 19th June, 1965 (Annexure '1'), as also the orders of the Gold Control Administrator, dated the 26th September, 1969 (Annexure '3'), and the orders of the Government of India dated the 25th January, 1971 (Annexure '4'), refusing to interfere with the orders of the Collector.

(2.) The petitioner has stated in the writ application that he is a poor Karigar (certified goldsmith) and has been doing the work of repairing and making gold ornaments from old ornaments supplied by the customers. At the place where the petitioner worked, other Karigar ("certified goldsmiths), namely. Ramchandra Prasad, Baleshwar Prasad and Sarjoo Lal, were also doing similar work of their own customers, as the petitioner. None of these workers were subordinate to one another and they earned their charges from their respective customers for the work done by each of them. On the 11th April, 1964, some officers of the Central Excise visited the premises where the petitioner and the other three Karigars used to work and seized 474.207 grammes of melted gold and ornaments. They also seized a piece of primary gold bearing foreign marks, weighing 116.650 grammes from the possession of Ramchandra Prasad. The Officers also forced the petitioner to sign some statements, which were written according to their dictation. Thereafter, show cause notices were served on the petitioner as well as the other three Karigars, alleging contravention of Rules 126-C, 126-G (3) and 126-HH of the Defence of India Rules, 1962 (hereinafter referred to as the Rules). Notices were also served on the petitioner and the other three Karigars for the alleged contravention of Section 11 of the Customs Act and Rules 126-C, 126-H and 126-1 Of the Rules. The first set of notices related to the seizure of 474.207 grammes of gold and ornaments and a proceeding was initiated before the Collector of Central Excise, Patna, in this regard. The second set of notices related to the seizure of primary gold piece, bearing foreign marks, and a proceeding in this regard was started before the Assistant Collector of Central Excise, Patna. It is the petitioner's case that he and the other two Karigars filed their show cause before the Collector of Central Excise, stating that the petitioner held goldsmith's certificate dated the 21st January, 1964, to make ornaments from old ornaments supplied bv the customers. The other three Karigars also had similar certificates and the seized gold and the gold ornaments, weighing 474.207 grammes were the ornaments made or in the process of being made from the old ornaments supplied by the various customers, whose names and addresses were given for verification. The petitioner also prayed that the said customers be summoned for examination before the Collector The petitioner's case further is that two of the Karigars, namely, Sarjoo Lal and Baleshwar Prasad, corroborated the case of the petitioner before the Collector. Ramchandra Prasad, however, neither filed show cause nor appeared before the Collector. A grievance is made that without summoning the customers or Ramchandra Prasad, the Collector, by an order dated the 19th June, 1965, directed for confiscation of the gold and gold ornaments seized, under Rule 126-M and also imposed a penalty of Rs. 2,000/- under Rule 126-L (16) of the Rules (Annexure T). No order adverse to the remaining three Karigars was passed in the proceeding before the Collector.

(3.) As regards the proceeding before the Assistant Collector of Central Excise, Patna, regarding the seizure of primary gold bearing foreign marks, in his show cause the petitioner has stated that the said primary gold was not recovered from the possession of the petitioner, but it was recovered from the possession of Ramchandra Prasad, who was accountable for that. In that proceeding, the Assistant Collector of Central Excise ordered confiscation of the primary gold under Rule 126-M of the Rules.