S. Kalyanam, Member (J) - (1.) THIS appeal is directed against the order of the Additional Collector of Central Excise, Guntur, dated 29-6-1987 absolutely confiscating 873,850 gms. of primary gold under Section 111 (d) of the Customs Act, 1962, besides a penalty of Rs. 5,000/- under Section 112 of the Customs Act, 1962.
(2.) The appellant is a certified goldsmith. On the basis of intelligence, the officers of Headquarters Gold & Customs Preventive Unit, Guntur, intercepted the appellant and other person on 2-8-1985 at about 10.30 a.m. at Vijayawada Railway Station. One Durga Das who was also in the company of the appellant at that time was found in possession of the appellant's brief case which on examination by the authorities was found to contain 873.850 gms. of primary gold . as detailed hereunder : JUDGEMENT_1312_TLCE0_19880.htm The appellant also gave an inculpatory statement to the effect that Items No. 2 & 3 referred to above belonged to turn which he purchased for a sum of Rs. 85,000/- for purpose of sale. He also stated that the other two items under S.No. 1 & 4 above belonged to his companion Durga Das. It is in these circumstances, the authorities after further investigations initiated proceedings against the appellant and his companion under the provisions of the Customs Act, 1962 as well as the Gold (Control) Act, 1968 which eventually resulted in the present impugned order now appealed against. In regard to confiscation and penalty of gold in question under the provisions of the Gold (Control) Act, 1968, a separate appeal is pending before the Collector of Central Excise (Appeals), Madras, against the impugned order. Shri Narayanan, the learned Counsel and Shri Parthasarathy the learned Consultant for the appellant at the outset, submitted that the Show Cause Notice was not served on the appellant before the expiry of six months in terms of Section 110 of the Customs Act, 1962,, the 'Act' for short and therefore, the impugned order is vitiated. It was further submitted that even though reliance has been placed in regard the purity of the gold and its foreign origin on the Mint authority dated 26-2-1986 against the appellant, a copy of the same was not given to the appellant much less the appellant afforded an opportunity of being heard in that regacd. The impugned order was, therefore, assailed as violative of the principles of natural justice.
(3.) HEARD Shri C.V. Krishnan, the learned D.R.;