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TMI Blog1988 (9) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... rava, foils patyas and wires and absolute confiscation of 15 gold coins weighing 29.200 gms. and also the confiscation of gold ornaments weighing 1409.600 gms. and the fine of Rs. 20,000/- levied in lieu of confiscation as well as the penalty of Rs. 5,000/- on the appellant in appeal No. 73/83 and Rs. 1000/- on the appellant in appeal No. 72/83. 4. The appellant in appeal No. 73/83 is the son of the appellant in appeal No. 72/83. They along with the wife in appeal No. 73/83 were living together at the relevant time. 5. On 29-3-81, the Gold Control Officers searched the residential cum business premises of the appellants and seized primary gold, gold coins and gold ornaments described in the seizure panchanama. The statements of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act .) He, therefore, pleaded that the confiscation of 15 gold coins should be set aside. 8. The further submission was that excepting the bare statements of the appellants there was no evidence whatsoever to establish that the appellants were dealing in gold. The statements at best established possession of gold and gold ornaments. Mere possession would not be sufficient to hold that the appellants were dealing in gold. He vehemently urged that all the seized gold other than those released to the ladies belonged to the father of the appellant Shri A.H. Gandhi and they were in the possession and custody of his mother Smt. R.H. Gandhi, after the death of his father in the year 1941. The only two pieces of documentary evidences on which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant Shri Anandlal Hiralal Gandhi amply made clear that the transactions in gold were made clandestinely and therefore, the Collector was justified in passing the order. Shri Arya tried to support the confiscation of 15 gold coins by contending that there had been no declaration in respect of those coins as required under Section 16. 10. I have carefully considered the submissions made on both the sides and perused the available records. I agree with the contention of Shri Solanki that the Collector committed an error in ordering confiscation of 15 gold coins seized in this case. The only ground on which the confiscation was ordered was that the appellants contravened Section 8 (5) of the Act. It was not the case of the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re obtained during the manufacture of ornaments either by converting old gold ornaments into new gold ornaments or in the manufacture of new gold ornaments from primary gold. The story of the appellants that this primary gold also stored for 40 years would have been accepted if these primary gold as well as all the seized gold ornaments were found together. But then, the evidence as well as the panchanama clearly establish that all the seized ornaments were not found in the drum as contended by the appellants. They have found in different drums and are in different places. The definition of dealer takes within its ambit manufacture of gold also. Looking to the quantity of primary gold in the form of rava, foils, patyas and wires it can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take their ornaments. They picked up their ornaments. It is to be remembered that out of the 3 persons, 2 were ladies. One of them is the appellant s mother who is an old lady. If really, the other gold ornaments seized by the department belonged to the deceased husband of Smt. R.H. Gandhi who was stated to be in custody and possession, one would have expected her to pick up those ornaments also. She did not do so. It was not the case of the appellant that those ornaments were pledged with them in connection with the money lending business. Looking to the places from where they seized and taking into consideration the items seized and coupled with the admission of the appellant Shri A.H. Gandhi, the Collector, in my opinion was justified i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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