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TMI Blog1984 (1) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... s sent 222 gold bangles weighing 4813.800 grams to the Mint for this purpose. The officers of the Central Excise (Gold Division) posted at the Mint passed the bangles as ornaments as defined in the Act and issued a receipt to that effect. Before the bangles could be melted, however, officers of the Gold Circle, Bombay (Preventive and Intelligence) seized them. A statement was taken from a partner of the petitioners, Arvind Kumar Mohanlal Choksi. A panchnama was made, at which the panchas were Popatlal Purshottamdas Soni and Himatlal Deepchand Gandhi. It was noted in the panchnama that it was found on a careful examination that the articles seized were gold bangles numbering 222 of different sizes, weights and designs and the approximate pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t they could have the same design, shape and weight. It was also stated that the petitioners partner could not correlate them with the purchases shown in their accounts. On 24th November 1969 the petitioners replied to the show cause notice and submitted that they had not contravened the provisions of the Act. 3. At the instance of the petitioners the two panchas were subjected to an examination. Popatlal stated that he was a licensed goldsmith, who had been in the business for 14 years and had large experience with ornaments. He stated that the bangles were ornaments and would be considered to be in a finished form. Such bangles were worn by ladies. In the course of his business he had received similar bangles for purchases to be made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31 of the Act. The Collector noted that he had examined the bangles. They could not be said to be in a finished form. The die in respect of each of the five patterns was rough and there was no polish whatsoever. Therefore, they could not be said to be in a finished form and fell outside the scope of the definition of ornaments given in Section 2(p) of the Act. The Collector was not convinced of the plea that such ornaments were normally used. It was difficult for him to go by the evidence of the panchas on this score since one of the panchas had been working with the petitioners and his sympathy would naturally be with the petitioners, but even he had admitted that there were some rough edges on the bangles. When purchases were made from ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andom for verification and it was found that the parties shown as sellers of the bangles were fictitious . If gold was crudely given a shape resembling an ornament without its being manufactured by a specialist like a goldsmith then the purpose of Gold Control Act would be defeated, as there would be no control on the person who just gave a shape to gold resembling an ornament. To make the Act more purposeful and to have control on the manufacture of ornaments, it was necessary that only such items should be taken as ornaments as satisfied all the criteria laid down in the definition of ornament. Applying this test, the bangles were not in finished form and their sides were not smooth. They could not be used for personal adornment as the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. There an ornament is defined as a thing, in a finished form, meant for personal adornment or for the adornment of any idol, deity or any other object of religious worship, made of, or manufactured from, gold, whether or not set with stones or gems (real or artificial), or with pearls (real, cultured or imitation) or with all or any of them, and includes parts, pendants or broken pieces of ornaments. The explanation to the definition states that, for the purposes of the Act, nothing made of gold, which resembles an ornament, shall be deemed to be an ornament unless the thing (having regard to its purity, size, weight, description or workmanship) is such as is commonly used as ornament in any State or Union territory. The evidence on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he meaning of the Act and, therefore, were acquired by the petitioners in a manner authorised by Section 31 of the Act. 13. It will have been noted that the authorities viewed the aspect of failure to maintain the requisite records upto date in the light of their finding that the bangles were not ornaments and had been illegally acquired by the petitioners. Now that finding is being set aside, the respondents shall have to examine the first finding afresh and the matter will be remanded for that purpose. 14. The order of the Collector of Customs dated 23rd October, 1970, the order of the Gold Controller (Administrator) dated 2nd June, 1972 and the order in revision of the Government of India dated 18th October, 1979 are quashed and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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