9911796707
TMI Blog1988 (2) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... 981 the officers of Gold Control, Bombay, after verification of the statutory records and the physical stock found 1298 gms. of 22 and 23 carats purity and 145 gms. of 12 14 cts. purity new gold ornaments in excess. As the partner of the firm Shri Chandrakumar could not satisfactorily explain the excess, both the quantities were seized. On the date of seizure the statement of Chandrakumar who appears to be the person in charge of the management of the firm, admitted the seizure. He, however, stated that since his mother who was the other partner, was suffering from cancer he too was not attending to the business and one servant Kashinat was looking after the business. He further admitted that the servant had not been giving vouchers while r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed-that out of a quantity of 1443.000 gms., 585.300 gms. were received for repairs and polishing from the customers and the Collector had accepted this contention of the appellant but then he had ordered confiscation of this quantity solely on the ground that the licensed dealer did not maintain proper account and thereby contravened Section 55 of the Gold (Control) Act. Shri Jain submitted that once the Collector had accepted the contentions that this gold belonged to the customers he cannot order confiscation unless he holds that the customers had knowledge of and had connived in the contraventions of the Gold (Control) Act by the dealer. No such finding was recorded by the Collector. Shri Mondal referred to the order of the Collector and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were ordered to be confiscated, Shri Jain did not address any argument. 7. As regards the remaining 254.950 gms., Shri Jain submitted that as early as 21-5-1981 the appellant had informed the Department that 145 gms. out of 254.950 gms. should be outside the purview of the Gold (Control) Act inasmuch as those ornaments are less than 9 ct. in purity. As regards remaining 110 gms. Shri Jain contended that they form foreign matters which are involved in the ornaments. According to Shri Jain, at the time of seizure, no inventory of the ornaments or description of each of the ornament had been made. Shri Jain submitted that according to the department all the ornaments were new ornaments. As per G.S. 12 Register the dealer is not required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions 31, 36 and 55. He, therefore, justified not only the order of confiscation but also imposition of fine and penalty. 9. It is difficult to accept Shri Jain s contention that there was only a technical breach in respect of 602.750 gms. Admittedly, no vouchers were issued for receipt of this gold. No entry had been made in the statutory register. No account was maintained when this quantity was stated to have been issued to the goldsmith. Therefore, the Collector was justified in holding that there was contravention of Section 36 read with Rule 13(1) of the Rules. 10. There is, however, considerable force in the contention of Shri Jain that there was an obligation on the part of the Department to examine the contention as to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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