2000 (9) TMI 80 - HC - Central Excise

Summary

Issues: Interpretation of the Gold (Control) Act regarding the weight of ornaments containing stones and gems for the purpose of penal provisions.

In this judgment, the petitioner possessed gold ornaments exceeding 4000 gms, leading to an order of confiscation. The petitioner argued that if the weight of stones and gems in the ornaments were excluded, the weight would fall below 4000 gms, making Section 16 of the Gold (Control) Act inapplicable. The Act aimed to control the production, supply, and possession of gold ornaments. "Gold" was defined to include alloys and ornaments, while "ornament" encompassed items for adornment, with or without stones or gems. Section 16 mandated declarations for owned ornaments, exempting those not exceeding 4000 gms owned by a family. The court noted that the Act did not exclude the weight of gems or pearls while determining the 4000 gms limit. The exemption clause was to be narrowly construed. The Act intended to regulate gold in any form, including ornaments with gems or pearls. The Tribunal's view, upholding the inclusion of gem weight, was deemed correct as the undisclosed ornaments were subject to penalty. The court held that the Act's definitions of "gold" and "ornaments" encompassed the weight of pearls and stones for penal provisions.