1987 (7) TMI 248 - AT - Central Excise

Summary

Issues Involved:

1. Confiscation of gold and Indian currency under various Acts.
2. Classification of Mohurs and Habib coins under the Gold Control Act (GCA).
3. Confiscation of foreign marked gold under the Customs Act (CA).
4. Penalty imposition under the GCA and CA.

Issue-wise Detailed Analysis:

1. Confiscation of Gold and Indian Currency:

Gold and Indian currency were seized from the premises of two individuals for contravention of Sections 8(1) and 16 of the Gold Control Act, 1968 (GCA), Section 11 of the Customs Act, 1962 (CA), and Section 13 of the Foreign Exchange Regulation Act, 1973 (FERA). The seized items included various gold coins, mohurs, and a cut piece of foreign-origin gold biscuit. The Indian currency was alleged to be the sale proceeds of contraband gold under Section 121 of the CA.

2. Classification of Mohurs and Habib Coins:

The primary issue was whether Mohurs and Habib coins were considered "primary gold" or "articles" under the GCA. The adjudicating authority initially confiscated these items, but the lower appellate authority released them, stating that they fell within the definition of "articles" and required declaration under the GCA. The appellant-Collector argued that these items were primary gold, not issued by a sovereign power, and thus liable for confiscation. However, the tribunal found that the Mohurs and Habib coins were fully finished products with designs and inscriptions, not crude or semi-finished forms, and thus classified them as "articles" rather than "primary gold."

3. Confiscation of Foreign Marked Gold:

The foreign marked gold piece weighing 72 grams was confiscated under the CA. The onus to prove that the foreign marked gold was not smuggled lay on the appellant, which was not discharged. The tribunal upheld the absolute confiscation of the foreign marked gold, stating that mere possession attracted penal liability under Section 112 of the CA.

4. Penalty Imposition:

A penalty of Rs. 1000/- was imposed on one individual under Section 74 of the GCA for possession of primary gold. Additionally, a penalty of Rs. 1500/- was imposed under Section 112(2) of the CA for the foreign marked gold. The tribunal upheld these penalties, finding no reason to interfere with the adjudicating authority's decision.

Conclusion:

The tribunal confirmed the lower appellate authority's decision to release the Mohurs and Habib coins, classifying them as "articles" under the GCA. It upheld the confiscation of the foreign marked gold and the associated penalties under the CA. The appeals were disposed of accordingly, with specific directions for the release of certain items upon payment of a fine.