PHAGU MAL RATTAN CHAND Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition arises out of the proceedings allegedly taken by the respondents against the petitioners under the provisions of the Gold Control Act, 1968 (hereinafter called the Act). The petitioners have challenged the order of seizure of the Gold Ornaments weighing 244.750 grams ordered to be confiscated and imposition of a penalty of Rs. 2,000/- as stood modified by the order of respondent No. 1 by partly allowing the revision of the petitioners by order dated May 16, 1981 and in lieu of confiscation releasing the ornaments on payment of a fine of Rs. 7,500/-.

(2.) It is stated in the petition that petitioner No. 1 is a partnership concern and a licensed dealer in terms of the Act, whereas petitioner No. 2 is one of the partners of the said firm. On November 1, 1973, the Central Excise Intelligence and Preventive Officers headed by an Inspector visited the business premises of the petitioners situate in Jain Bazar Jammu. On physical verification of stocks, the said officers seized sixty pieces of gold ornaments weighing 244.750 grams (in Gross), in excess of the recorded balance on the alleged violation of the provisions of the Act. It is further stated that on February 12, 1974, a show cause notice was issued to the petitioners by Assistant-Collector, Customs and Central Excise, Srinagar, Respondent No. 3, alleging that the petitioners had been guilty of violating the provisions of Sections 8, 33, 36 and 55 of the Act. They were, therefore, called upon also to show cause as to why the ornaments seized be not confiscated under Section 71 of the Act and the penalty in temes of Section 74 be not imposed. The petitioners replied the said notice attacking the seizure as well as the allegations made against the petitioners in the said notice of show cause and denied that they have committed any violation of the Sections shown therein.

(3.) The Assistant Collector, Customs and Central Excise, Srinagar respondent No. 3 by his order dated April 30, 1974 directed the confiscation of the ornaments seized and imposed a penalty of Rs. 1,000/- upon the petitioners in terms of Section 74 of the Act on the strength of the alleged statements of the owners of the ornaments recorded behind the back of the petitioners. On appeal against the said order to respondent No. 2 by the petitioners, the same was accepted by order dated December 23, 1975, who directed that the proceedings leading to the passing of the final order be conducted de novo. On receipt of the file, respondent No. 3 by a notice dated March 22, 1976 purported to level a further allegation against the petitioners alleging violation of the provisions of the Identification of Customs Rule 1969 besides the provisions of the Act. The said notice was also contested by the petitioners alleging that the show cause notice issued amounts to fresh charge and is beyond the scope of the directions issued by the Collector while remanding the case for de novo enquiry.