S MURUGESAN Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THE Miscellaneous application has been filed for leave to produce additional evidence regarding the claims of ownership of third parties.

(2.) A. Nos.G/115 & 116/88 & C/331/88. - Since the above appeals arise out of the common order of the Collector of Central Excise, Cochin, dated 11.12.87 they are taken up together and disposed of by single order.

(3.) THE appellants herein are brothers and are living in the same house at Palayam, Nedumangad of Trivandrum District. Appellant Murugesan is a licensee under the Act. His brother appellant Chandra Kumar obtained a licence under the Act on 14.3.87. On 27.3.87 on the basis of prior information the Central Excise authorities searched the residential premises of appellants and found appellant Murugesan in possession of 3,597.500 gms. of new gold ornaments, 1010 gms. of old gold ornaments,.. 10 gms. of gold of foreign origin, two gold coins of foreign origin weighing 16 gms., primary gold weighing 206.000 gms., crude gold in the forms of ring weighing 23.000 gms. and Indian currency of Rs. 1,20,630/-. Since the authorities had reason to believe that the gold ornaments had not been accounted for in the statutory accounts of appellant Murugesan and had reason to believe that the currency represented the sale proceeds of contraband gold, they effected the seizure of the gold and also gold ornaments and also the currency under a mahazar as per law. We are not in the present case concerned with the currency because under the impugned order the currency has been ordered to be released. Shri Murugesan gave a statement before the authorities on 27.3.87 admitting the fact that the gold and ornaments belonged to him and were kept in the residence for business purposes without having been accounted for in the statutory register. Shri Chandra Kumar the brother of appellant Murugesan also gave a statement before the authorities on 28.3.87 corroborating the version of appellant Murugesan. Appellant Murugesan gave a further statement on 28.3.87 that the gold and ornaments were purchased by him and that the gold biscuits and gold coins were of foreign origin and that the primary gold was made out of the gold melted by him. He again admitted that the goods had not been accounted for in his books and registers under the Act. It is in these circumstances after further investigation proceedings were instituted against the appellant resulting in the present impugned order appealed against.