K R PANDURANGAN Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THIS appeal is directed against the order of Collector of Central Excise (Appeals), Madras, dated 24-7-87 confirming the order of the Additional Collector of Central Excise, Coimbotore, dated 28-6-84, imposing a penalty of Rs. 7,000/- on the appellant under Section 74 of the Gold (Control) Act, 1968, the 'Act' for short.

(2.) The appellant is a licensed gold dealer at Coimbatore. On 2-6-83, the Central Excise Authorities intercepted one Chidambaram at Walayar when he was travelling by a bus bound for Palghat from Coimbatore and recovered from him 74 items of gold ornaments detailed in the impugned order. The said Chidambaram informed the authorities that the ornaments belonged to the appellant herein and were being taken to one M/s. Balakrishnan & Brothers at Calicut for sale, without any supporting documents. The authorities, therefore, seized all the ornaments in question under a mahazar. The said Chidambaram gave a statement on 2-6-83 that the ornaments under seizure belonged to the appellant but subsequently retracted the same on 5-6-83. The proceedings instituted after further investigations eventually resulted in the order of confiscation of the ornaments in question with an option to redeem the same on payment of fine in favour of the said Chidambaram. This appeal by the appellant is only in respect of the penalty under the Act.

(3.) HEARD Shri K.K. Bhatia, the learned D.R.