1986 (2) TMI 189 - AT - Central Excise

Summary

Issues:
Appeal against customs order, confiscation of gold ornaments, excessive redemption fine and penalty, reduction of penalty amount.

Analysis:
The appeal was directed against an order upholding the confiscation of 73 pieces of unaccounted gold ornaments by the Collector of Customs. The appellant, a Licensed Gold Dealer, claimed that some of the ornaments belonged to customers for repair, but the Adjudicating Authority rejected this defense. The gold ornaments were confiscated with an option for redemption on payment of a fine and a personal penalty was imposed. The appeal against this decision was unsuccessful.

The respondent filed a cross-objection maintaining that the orders were in accordance with the law and did not require interference. During the appeal, the appellant's counsel argued that the redemption fine and penalty were excessive for a technical offense. Citing a previous tribunal order, the appellant contended that the penalties were disproportionate. The respondent argued that the penalties were justified based on the facts of the case.

After considering the arguments, the tribunal found the redemption fine and penalty to be excessive. The appellant, a Licensed Gold Dealer, had failed to keep proper records but there was no evidence of clandestine disposal of the gold. The tribunal upheld the redemption fine but reduced the personal penalty from Rs. 10,000 to Rs. 2,000 to serve as a deterrent for future compliance. The tribunal referenced a similar case where penalties were reduced under comparable circumstances.

Consequently, the appeal was partly allowed, confirming the findings and redemption fine while reducing the penalty amount. The cross-objection was also disposed of accordingly.