1987 (8) TMI 268 - AT - Central Excise

Summary

Issues:
1. Imposition of fine and penalty under the Gold (Control) Act, 1968.
2. Dispute regarding the licensee of a shop and seizure of gold ornaments.
3. Non-issuance of Show Cause Notice to the licensee.
4. Liability of an employee for contraventions under the Act.
5. Legality of penalty imposed on the employee.
6. Request for remand by the Departmental Representative.

Analysis:

1. The judgment deals with the imposition of a fine and penalty under the Gold (Control) Act, 1968, based on a common order of the Collector of Customs & Central Excise. The adjudicating authority imposed a fine and penalty on the appellants for non-accounted gold ornaments.

2. The dispute revolves around the licensee of a shop and the seizure of gold ornaments. The appellants, a father, and son duo, were involved in the case where gold ornaments were seized from the licensed premises of a jewelry shop. The son, an employee, was present during the seizure.

3. The issue of non-issuance of a Show Cause Notice to the licensee, the father, was raised. The judgment highlights that the licensee was not served with a proper notice, which is a mandatory requirement under the Act. The failure to issue a Show Cause Notice to the licensee was deemed a serious infirmity that vitiated the impugned order.

4. The judgment questions the liability of an employee, the son, for contraventions under the Act. It emphasizes that the son, being an employee and not the licensee, should not have been proceeded against for any charges of contravention.

5. The legality of the penalty imposed on the employee was also examined. The judgment concluded that the penalty imposed on the employee was not justified, considering the employee's role as a manager and not the licensee.

6. Lastly, the Departmental Representative requested a remand for reconsideration of the issue by the adjudicating authority. However, the judgment rejected the remand request, citing the lapse of time and the release of the seized ornaments to the licensee, rendering a remand unnecessary in this case.

In conclusion, the judgment set aside the impugned order, allowing the appeals due to the serious infirmity caused by the non-issuance of a Show Cause Notice to the licensee and the unjust penalty imposed on the employee.