J J JEWELLERS Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THE above two appeals are directed against the common order of the Collector of Central Excise, Cochin, dated 6-10-1988 imposing a fine of Rs. 2,00,000/- in lieu of confiscation of 2243.900 gms. of gold ornaments, absolutely confiscating 5.700 gms. of primary gold besides imposing a penalty of Rs. 50,000/- on appellant J.J. Jewellers, Nellore, and Rs. 5,000/- on appellant Praveen Kumar Jain under Section 74 of the Gold (Control) Act, 1968, the 'Act' for short.

(2.) Appellant J.J. Jewellers are licensees under the Act at Nellore and appellant Praveen Kumar Jain is their employee. On 31-8-1987, the Superintendent of Central Excise, Cochin, intercepted appellant Praveen Kumar Jain at Ernakulam and found him in possession of gold ornaments totally weighing 2249.600 gms. which included 5.700 gms. of primary gold. Since the authorities had reason to believe that the ornaments which were found new were being taken for purposes of sale in contravention of Section 27(7)(b) of the Act, they effected seizure of the same under a mahazar as per law. Appellant Praveen Kumar Jain gave a statement before the authorities on 31-8-1987 that he was an employee of appellant J.J. Jewellers and that the ornaments were being taken for purposes of sale and that all the ornaments had not been entered in the G.S.12 Register. It is in these circumstances after further investigations proceedings were instituted against the appellants resulting in the present impugned order.

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