J MOHANLAL Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is directed against the order of the Collector of Central Excise, Madras, dated 10.11.87 imposing a fine of Rs.42,700 in lieu of 832.000 gms. of new gold ornaments under Section 73 and a penalty of Rs. 42,600 on the appellant under Section 74 of the Gold (Control) Act, 1968, the 'Act' for short.

(2.) The appellant is a pawn broker at Chingleput. On 7.8.1986 the Central Excise officers visited the appellant's shop at Chingleput and found him in possession of new ornaments totally weighing 832.000 gms. The authorities on a reasonable belief that the ornaments were being kept for purposes of; 'sale in contravention of the Act effected seizure of the same under a mahazar as per law. The appellant also gave a statement on 7.8.86 before the authorities that the ornaments under seizure were kept only for purposes of sale. It is in these circumstances, after further investigations, proceedings were instituted against the appellant resulting in the present impugned order.

(3.) HEARD Shri Krishnan, the learned D.R.