RATAN JEWELLERS Vs. COLLECTOR OF CUSTOMS AND C EX

JUDGEMENT

(1.) THE above appeals arise out of the common order of the Collector of Customs & Central Excise, Hyderabad, dated 1-7-1987.

(2.) Under the impugned order the adjudicating authority has absolutely confiscated 12.350 gms. of primary gold of 18 ct. purity valued at Rs. 2,100 under Section 71, confiscated 340 pieces of gold ornaments weighing 1097.000 gms. of 22 ct. purity valued at Rs. 2,08,430/- and permitted redemption of the same on payment of a fine of Rs. 1,50,000 under Section 73, imposed a further fine of Rs. 2,000 in lieu of confiscation of the ornaments of weighing 23.300 gms. of 22 ct. purity, besides a penalty of Rs. 50,000 on appellant Ratan Jewellers and Rs. 5,000 on appellant Kiran Kumar under Section 74 of the Gold (Control) Act, 1968, the 'Act' for short.

(3.) ON 16-2-1986 the Superintendent of Central Excise (Preventive), Nellore, alongwith his officers intercepted appellant Kiran Kumar at Nellore bus stand and recovered from his possession 14 paper packets containing 340 pieces of new gold ornaments of different description totally weighing 1097.000 gms. Kiran Kumar was also found in possession of 2 vouchers bearing Nos. 99 and 100 issued in the name of Jashko Fashion Jewellers, Kottayam. Since the ornaments were in trade quantities and the vouchers found in the possession of Kiran Kumar contained many irregularities and also some over-writing, the authorities on a reasonable belief that the ornaments in question were being taken for purposes of sale in contravention of the provisions of the Act effected seizure of the same under a mahazar as per law. As a follow up action, the authorities verified the stocks and accounts at M/s. Ratan Jewellers, Nellore, and found the same to be correct. The authorities visited the residential premises of appellant Hirachand at Kandapala Street, Nellore, and recovered from the house the following gold and ornaments: