1985 (2) TMI 274 - AT - Customs

Summary

Issues: Confiscation of gold under the Gold (Control) Act, conscious possession of gold, legal aspects of primary gold definition, applicability of Sections 8(1) and 16, family possession limits, relevance of court decisions on declaration, evidence of possession, release of confiscated goods, penalty imposition.

Analysis:

The judgment pertains to a transferred appeal under Section 82-K of the Gold (Control) Act challenging an order of confiscation of gold bars and coins by the Collector of Central Excise & Customs Pune. The appellant was found with concealed gold items during a search by Income-tax authorities. The appellant denied conscious possession, attributing the gold to his deceased father. The appellant's advocate argued that the appellant, as the Kartha of a Hindu Undivided Family, was not in conscious possession of the gold, emphasizing the family's possession limit of 12000 gms.

The legal representative of the appellant delved into the definition of primary gold, contending that the seized gold coins did not fall under this category. Reference was made to Sections 8(1), 16(5), and 16(6) of the Act, highlighting the family possession limit and citing court decisions to support the argument on declaration requirements. The Senior Departmental Representative countered by questioning the concealment of the gold, implying knowledge within the family, but the tribunal did not pursue this line of argument.

Upon considering the arguments, the tribunal noted the circumstances of the seizure, emphasizing the unsuccessful attempts to locate the hidden gold, casting doubt on the precise information possessed by the authorities. The tribunal observed the appellant's agricultural background and the presence of old coins in their possession, reflecting a conservative approach to finances. Ultimately, the tribunal found insufficient evidence to establish conscious possession of the gold and coins, leading to the setting aside of the confiscation order. The tribunal ordered the release of the confiscated items with a condition for disposal or conversion within a specified period and remitted the penalty imposed on the appellant.