SHANTI LAL Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THIS appeal is directed against the order of Collector of Central Excise (Appeals), Madras, dated 16-6-1987 confirming the order of the Additional Collector of Central Excise & Customs, Trichy, dated 29-12-1984 absolutely confiscating the primary gold totally weighing 1084.000 Gms. valued at Rs. 2,00,540/-, and modifying and reducing the penalty on the appellant from Rs. 25,000/- to Rs. 15,000/- under Section 74 of the Gold (Control) Act, 1968, the Act for short.

(2.) The appellant is a certified goldsmith at Trichy. On the basis of prior information, the officers of the Directorate, Revenue Intelligence and Customs Preventive Unit on 19-10-1983 intercepted the appellant at Karur when he was a passenger in a Cheran Transport Corporation Bus No. TML 4061 bound for Mettupalayam from Trichy. The authorities intercepted one Balasundaram who was a passenger along with the appellant and the authorities recovered from his possession one gold block covered by newspaper kept in a cloth ponch tied around his waist. The gold block weighed 1084 gms. The authorities effected seizure of the same under a mahazar as per law. Shri Balasundaram gave a statement before the authorities that the gold block belonged to the appellant and the appellant also admitted that he was the owner. The plea of the appellant originally was that he melted certain foreign gold and was taking the primary gold for sale at Coimbatore. Subsequently the case of the appellant was that he had received gold ornaments from customers for repairs and melted it for the purpose of re-making. Proceedings instituted against the appellant resulted in the impugned order appealed against.

(3.) HEARD Shri K.M. Vadivelu, the learned D.R. who contended that the appellant has not taken out any plea in the grounds of appeal excepting the plea that the adjudication of Gold Control cases by Additional Collector of Central Excise is without ' jurisdiction. The learned D.R. submitted that Additional Collector of Central Excise being an officer of the rank of Collector of Central Excise is a Gold Control Officer within the meaning of Section 78 of the Act read with Section 4 and Notification No. 2319, dated 29-6-1968. The learned D.R. also contended that purity of the gold being 24 carat, the order of confiscation has to be sustained.