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TMI Blog1989 (8) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Anarkali Jewellers and that the firm was convicted of an offence under Gold (Control) Act in a case of seizure involving 225-500 grams of primary gold and that a penalty of Rs. 2,000/- was imposed, which was not disclosed by the appellant at the time of filing an application for licence. The appellant s stand before the authority was that there was no necessity for him to stale involvement of the firm relating to offence and penalty as no penalty was imposed on any partner and particularly on him as firm itself was a separate legal entity on its own from partners and he was not subjected to any penalty and he was not required to make any such information for granting a fresh licence under the relevant rules. The plea of the appellant was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that grant of licence was renewed in the case of old firm as well as new firm. He contended that the appellant was not required to make declaration of the involvement of the offence proceedings pertaining to the firm as he was applying for licence in his individual capacity as the firm and the partners are altogether different as the firm is a separate legal entity from its partners under the provisions of the Gold (Control) Act. In support of his contention, he cited the following decisions :- (i) AIR (35) 1948 - Privy Council-100 - Bhagwanji Morarji Goculdas v. Alembic Chemical Works Co. Ltd. and Others. (ii) 1978 (2) E.L.T. (J 317) - Assistant Collector of Central Excise and Customs at Surat and Others v. Shri J. C. Shah, M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in rejecting the licence. 5. We have gone through the arguments advanced by both sides and perused the records. The first issue to be decided in this case is whether the firm is a separate and distinct legal entity apart from its partner to get licence under the provisions of the Gold (Control) Act. Section 27 of the Gold (Control) Act, 1968 is relevant in this context which concerns with licensing of dealers. Relevant portion of Section 27 of the Act dealing with grant of licence and cancellation is reproduced as under :- 27. Licensing of dealers. - (1) Save as otherwise provided in this Act, no person shall commence, or carry on, business as a dealer unless he holds a valid licence issued in this behalf by the Administrato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cence under Section 27 of the Gold (Control) Act and he has given declaration as per Rule 2 of the Gold Control (Licensing of Dealers) Rules, 1969 declaring that he has never been convicted of any offence nor any penalty has been imposed without disclosing the involvement of the firm with the firm stand that the firm is different person from partner. The term person has not been defined in the Act. But the term Dealer is defined in Section 2(h) as including Hindu undivided family, local authority, company, society registered under the Societies Registration Act, 1960, co-operative societies, club, firm or other association of persons. In view of the definition and as per provisions of the Gold (Control) Act and Rules, the firm is also cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it applied for renewal. Hence the notice issued to the firm was non est in law. In view of the observations as per decisions of Courts cited Supra and as per provisions of the Gold (Control) Act and Gold Control (Licensing of Dealers) Rules, 1969, it is clear that firm and partners are not one and the same and that irrespective of the treatment of firm and partners either under General Law or under sister statutory law, the firm is a separate legal entity from its partners under the provisions of Gold (Control) Act. Non-disclosure of involvement of firm cannot be construed as inaccurate particulars while applying for licence in individual capacity as firm is separate and distinct legal entity from its partner. In the view we have taken, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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