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TMI Blog1988 (2) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... acts, they are clubbed together, heard together, hence this common order. 3. The appellant in appeal GC(T)(BOM) No. 36/82 is a partnership firm. The appellant in A. No. 34/82 is the son of appellant in Appeal No. 35/82. The father and the son are the partners of the firm referred to above. 4. The facts necessary for the disposal of these appeals are few and single. On 12-3-1981, the Gold Control Supdt. visited the premises of M/s. Chhogmal Rupchand Jain. During the visit, he came to know that Shri Chhogmal R. Jain in 1972 and inducted his son Premchand Chhogmal Jain as partner. Ever since the year 1972, the partnership firm has been carrying on the business as gold dealers. But then, no licence as such was obtained to carry on the busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her submitted that no offence had been committed in respect of the stock-in-trade because the appellants have maintained all the statutory registers and, therefore, the Collector was not justified in ordering confiscation. It was further contended by Shri Mehta that during the proceedings, an application was made for licence in the name of the firm and the licence was granted. Therefore, the offence, if any, committed is a minor offence which did not call for imposition of fine or penalty. Finally, Shri Mehta submitted that on the representation of the gold dealers, the Government realised the necessity of not obtaining the prior approval of the department for changing the constitution of the firm and they had issued a Notification in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and penalty. Shri Mondal submitted that when the appellants could inform as to the change in the constitution of the firm to the authorities such as Income-tax, Sales-tax and registrar of firms, it is not clear why they could not inform the Gold authorities. The plea that they were unaware of the requirement, should not be accepted because even after the change in the constitution of the proprietary concern, the proprietor has been getting his licence renewed upto the date of visit of the Supdt. He, therefore, contended that there is no bona fide in the plea of the appellants. As regards the fine and penalty, Shri Mondal submitted that the value of the gold ornaments comes to Rs. 1,02,600/-. The fine imposed was only Rs. 10,000/- which wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the partnership firm that had carried on the gold dealers business. Admittedly, the firm as such did not possess gold dealers licence. It had neither applied nor obtained the licence. Therefore, there was contravention of Section 27(1). The contention of Shri Mehta that because the appellants had maintained all the statutory records, there was no contravention of any of the provisions of the Gold (Control) Act in respect of the gold seized and therefore, the seized gold did not become liable to confiscation, is not legally tenable. It was not the contention of Shri Mehta that the seized gold did not form part of the stock-in-trade of the partnership firm. Since the partnership firm did not obtain a licence the entire gold seized and trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , set aside the penalties on both the appellants. As regards, the fine, the father who was a dealer in gold should have known that he was required to obtain a fresh licence when he took his son as a partner. His plea that he was not aware of his obligation to inform the Gold Control Authority cannot be believed because he had informed all other authorities, who are required to be informed. However, having regard to the later Trade Notice issued in the year 1986 which permitted taking of son or daughter as partners without prior permission of the department, I reduce the fine from Rs. 10,000/- to Rs. 2,500/-(Rupees two thousand five hundred). 9. Subject to the modification in the quantum of fine and penalties, these appeals fail and they a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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