9911796707
TMI Blog1989 (7) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... on payment of a fine of Rs. 20,000/- and imposition of penalty of Rs. 5000/- on the appellant. 2. On 22-10-1982, the residential premises of the appellant were searched, where 293.100 gms of primary gold and 1976.000 gms of gold ornaments were found. The appellant is a licensed goldsmith. The authorities found that there were no registers maintained by him and it appears that he has suspended the business since 1979. So far as the gold ornaments of 1976.000 gms were concerned, they were claimed to be the family ornaments, which on verification, was found to be correct and those ornaments were returned. As regards 293.100 gms of primary gold was concerned, no satisfactory explanation was available and hence the same was attached under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were found, Shri Shah submitted that vide Section 39(3) of the Gold (Control) Act, a licensed goldsmith remains a licensed goldsmith till the death or the licence is cancelled. Here the licence is not cancelled and that, therefore, the appellant continue to remain a goldsmith and under such circumstances, the charge levelled against him cannot be sustained. He, further, submitted that vide Section 42 of the Act, a goldsmith is entitled to possess primary gold upto 300 gms and in the instant case, he is found to have possessed 293.100 gms of gold which is within the prescribed limit. He, then submitted that the adjudication proceedings ought to stand vitiated on the ground that there had been no show cause notice served on the appellant. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of drawal of panchnama as also in the statements recorded, the appellant has admitted that he is not doing any gold-smithy business. He has not got any account to show that the business is a running business and that he has not given the names of the customers at that time. Shri Prabhu submitted that the customers have been brought up only at a subsequent stage and even they admitted that they had never seen the appellant doing any gold-smithy work. Shri Prabhu, therefore, urged that the appellant has come forward with an entirely unconvincing story, that too, at a later stage which has to be negative and submitted that the orders passed by the authorities below calls for no interference. 5. I have considered the submissions made on both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed belonging to the customers has been advanced for the first time and at a very belated stage. In his statement recorded on 23-10-1982 that is, on the date of the seizure, the appellant has categorically stated in the last portion of his statement that the primary gold is lying in my house for the last one month which I received from my customers . It is true that he disclosed the names of the customers only in his letter dated 23-11-1982 i.e. after one month from the date of seizure. But then, we have also on record, the letters written by those customers addressed to the Deputy Collector, Gold Control, where they have lodged their claim over the ownership of the gold seized. The letters have been received by the authority on 23-11-1982 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a licensed gold-smith has received the ornaments without issuing any receipt to the party or without making any entry thereof in GS-13 register. Actually he is not maintaining any account. The appellant as a licensed gold-smith was required to comply with the statutory provision and maintain proper account and his failure to do so, makes him liable for contravention of the provisions contained in Section 55 of the Act. Considering the fact that the appellant has not remained in the active business and be doing some job for the purpose of earning some livelihood and considering the fact that the quantity of the gold found from him being very small, I hold that the personal penalty of Rs. 5000/- imposed on him is little excessive. I, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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