1987 (12) TMI 145 - AT - Central Excise

Summary

Issues:
Renewal of Gold Dealers Licence under Gold (Control) Act, 1968 based on contravention of Section 33 - Determining if contravention is technical or serious in nature.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Madras challenged the rejection of the renewal application for a Gold Dealers Licence by the Collector of Central Excise (Appeals), Madras. The rejection was based on a contravention of Section 33 of the Gold (Control) Act, 1968, involving non-accountal of gold ornaments. The appellants had been penalized for this contravention previously, with a fine and a penalty imposed by the Additional Collector of Central Excise, Cochin.

The appellants argued that the contravention should not disentitle them to license renewal, as the gold ornaments in question were family ornaments given to a certified goldsmith for polishing and eventual sale due to financial difficulties. The adjudicating authority had acknowledged that the ornaments belonged to the appellants' family and were duly declared under the Act. The delay in accounting for the ornaments was minimal and should not warrant non-renewal of the license.

The Tribunal considered the nature of the contravention in relation to the renewal of the Gold Dealers Licence. Referring to previous rulings, the Tribunal emphasized the importance of assessing the seriousness and gravity of the offense, as well as the circumstances surrounding it. The Tribunal highlighted that the appellants had been in the business for generations and had no prior contraventions. The fact that the ornaments were family-owned, declared, and polished by a certified goldsmith supported the appellants' case.

In light of the evidence and the nature of the offense, the Tribunal concluded that the contravention could be characterized as technical rather than serious. Citing guidelines from the Gold Control Administrator, the Tribunal expressed reluctance towards disproportionate punishment such as non-renewal of the license. Relying on previous Bench rulings and considering the specific circumstances of the case, the Tribunal set aside the order rejecting the renewal application and allowed the appeal, thereby granting the renewal of the Gold Dealers Licence to the appellants.