1987 (8) TMI 99 - HC - Central Excise

Summary

Issues:
1. Validity of Show Cause Notice under Section 82 of Gold (Control) Act, 1968.
2. Jurisdiction of Central Government to exercise revisional powers under Section 82(2) of the Act.
3. Admissibility of fresh material in revision proceedings.

Analysis:

Issue 1: Validity of Show Cause Notice
The petitioners sought to quash a Show Cause Notice issued by the Central Government under Section 82 of the Gold (Control) Act, 1968. The Notice aimed to revise an order confiscating gold bangles and imposing penalties on the petitioners. The Central Government's Notice was challenged on the grounds of legality and propriety.

Issue 2: Jurisdiction of Central Government
The Central Government proposed to exercise revisional jurisdiction under Section 82(2) of the Act based on fresh material not before the Administrator. This included a Mint Master's report and an inspection revealing certain characteristics of the gold bangles. The question at hand was whether the Central Government had the jurisdiction to consider new evidence not presented during the original adjudication.

Issue 3: Admissibility of Fresh Material
The Court emphasized that the revisional authority must base its decisions on the record before the subordinate authority. It was established that the Petitioners had already undergone criminal proceedings where they were acquitted based on evidence that the gold bangles were ornaments, not primary gold. The Administrator's decision to set aside the confiscation order was supported by this finding. The Court held that introducing new evidence after the conclusion of prior proceedings was impermissible, emphasizing the finality of investigations and adjudicatory processes.

In conclusion, the Court quashed the impugned Show Cause Notice dated 21st July, 1980, ruling in favor of the petitioners and allowing the Writ Petition with costs. The judgment underscored the importance of maintaining the integrity and finality of legal proceedings, prohibiting the reconsideration of matters based on evidence not previously presented before the relevant authorities.