1995 (1) TMI 93 - HC - Central Excise

Summary

Issues:
1. Confiscation of gold and imposition of penalties under the Gold Control Act by the Collector of Central Excise.
2. Appeal against the Collector's order before the Customs, Excise and Gold (Control) Appellate Tribunal.
3. Tribunal's decision confirming the confiscation of gold as primary gold and imposition of penalties.
4. Challenge of the Tribunal's decision in a writ petition before the High Court of Judicature at Madras.

Analysis:

1. The Collector of Central Excise ordered the confiscation of 707.880 grams of gold in the form of crude bangles, under Section 71(1) of the Gold Control Act. Additionally, penalties of Rs. 40,000/- and Rs. 10,000/- were levied on the petitioners. The petitioners contended that the gold was intended for making ornaments, citing cultural practices in Maharashtra where such crude ornaments are common.

2. The Tribunal, after personal inspection of the gold bangles, concluded that they were primary gold and not ornaments. The Tribunal disregarded the evidence presented by witnesses, including goldsmiths, and confirmed the confiscation order. The Tribunal allowed redemption of the gold on payment of a fine, reducing one petitioner's penalty while confirming the other's.

3. The High Court criticized the Tribunal for basing its decision solely on personal inspection without considering the evidence on record. The Court noted that the availability of the gold for further inspection was not crucial as there was substantial evidence before the Collector. Consequently, the High Court set aside the Tribunal's order and remanded the case for reconsideration based on the evidence presented earlier.

4. The Court emphasized the importance of Tribunal's consideration of the evidence and directed a reevaluation of the case based on the evidence adduced before the Collector. The writ petition was allowed, and the case was remanded to the Tribunal for a fresh decision. No costs were awarded in the matter.