1987 (5) TMI 37 - HC - Central Excise

Summary

Issues involved:
The issues involved in this case include violation of provisions of the Gold Control Act, 1968, confiscation of gold and gold ornaments, imposition of penalty, and the liability of legal representatives in case of death of the accused.

Details of the Judgment:

1. Confiscation and Penalty Proceedings:
The Gold Control Officers seized gold and gold ornaments from the joint family property of Gayens, leading to proceedings against Tarak Nath Gayen, Niranjan Gayen, and Debendra Nath Gayen. The show cause notice alleged violations of Sections 55, 41(b), and 27(1) of the Gold Control Act, 1968. The Collector of Central Excise ordered confiscation of gold and imposition of a penalty of Rs. 2 lakhs on the three individuals for contravention of the Act.

2. Appeal to Tribunal:
In appeal, the Tribunal ordered the return of all seized gold to the appellants due to lack of notice served to Mrigendra Nath Gayen, the head of the family. However, it upheld the penalty on the basis of improper maintenance of accounts and unlawful possession of gold by the appellants.

3. Liability of Legal Representatives:
Debendra Nath Gayen passed away before the penalty could be realized from him. The Court held that the penalty imposed was to punish him specifically, and thus, it cannot be recovered from his legal representatives. Citing precedent, the Court emphasized that the penalty cannot be enforced posthumously.

4. Final Decision:
The Court disposed of the writ petition by ruling that the penalty imposed on Debendra Nath Gayen would not be realized due to his demise. Tarak Nath Gayen and Niranjan Gayen were held liable to pay a reduced penalty of Rs. 25,000 each. The petitioners were directed to pay the penalty in installments, with default leading to legal action. The Court concluded the judgment without any order as to costs.

This judgment highlights the legal intricacies surrounding confiscation, penalty imposition, and the implications of an accused's death on penalty recovery, providing clarity on the liabilities of individuals under the Gold Control Act, 1968.