RAMESH JAIN Vs. COLLECTOR OF CUSTOMS AND C EX

JUDGEMENT

(1.) THIS appeal is directed against the order of the Collector of Customs & Central Excise, Hyderabad, dated 26-7-1988 imposing a fine of Rs. 1,00,000 in lieu of confiscation of gold ornaments weighing 990.250 gms. valued at Rs. 2,05,972/- under Section 73 of the Gold (Control) Act, 1968, the 'Act' for short, besides a penalty of Rs. 25,000 under Section 74 of the Act.

(2.) On 16-12-87 the officers of the Preventive & Intelligence Unit, Nellore Division, intercepted the appellant at Nellore when he alighted there from a bus bound for Tirupathi-Vijayawada and found him in possession of 990.250 gms. of new gold ornaments. Since the ornaments were in trade quantities, the authorities had reason to believe that they were kept for purposes of sale in contravention of law since the appellant admittedly was not a licensee under the Act. The authorities, therefore, effected seizure of the same under a mahazar as per law. Appellant gave a statement before the authorities that the ornaments belonged to his family and were being taken to Vijayawada for purpose of sale and that he sold one necklace to Narayanamoorthy and returned with the other ornaments as he could not sell them. It is in these circumstances proceedings were instituted against the appellant resulting in the present impugned order.

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