1985 (6) TMI 111 - AT - Central Excise

Reference Application - Gold ornaments and articles, including gold coins, undeclared by deceased though quantity exceeding specified limit

Summary

Issues:
1. Confiscation of primary gold under the Gold (Control) Act, 1968.
2. Confiscation of gold coins and liability of the successor.
3. Questions of law arising from the Tribunal's order.

Analysis:

1. The case involved the confiscation of primary gold weighing 482.900 gms found in the residential premises of an individual. The Collector of Central Excise, Madras, confiscated the gold under Section 71 of the Gold (Control) Act, 1968, due to a contravention of Section 8(1) by the individual who succeeded to the gold after his sister's death. A fine of Rs. 10,000 was imposed in lieu of confiscation. The Collector also confiscated gold coins, part of the deceased sister's possession exceeding the legal limit, and imposed a penalty on the individual under Section 74 of the Act.

2. The Tribunal, in an appeal filed against the Collector's order, upheld the confiscation of primary gold but set aside the confiscation of gold coins. It reasoned that the coins would not be liable to confiscation in the hands of the individual who inherited them, as the failure to declare them by the deceased did not make them automatically confiscable in the successor's possession.

3. The applicant sought to refer legal questions arising from the Tribunal's order to the High Court under Section 82B of the Act. The questions pertained to the application of the proviso to Section 71(1) of the Gold (Control) Act, 1968, in deciding the liability of undeclared gold coins to confiscation in the successor's possession. The High Court was asked to determine the correctness of applying the proviso in such circumstances.

In conclusion, the case involved the confiscation of gold under the Gold (Control) Act, 1968, with a specific focus on the possession of primary gold and gold coins in relation to inheritance and declaration requirements. The Tribunal's decision to set aside the confiscation of gold coins raised legal questions regarding the application of relevant provisions, leading to a reference to the High Court for clarification on the matter.