1988 (9) TMI 195 - AT - Central Excise

Summary

Issues:
Confiscation of gold items, applicability of Gold Control Act, possession of gold coins, justification of confiscation, penalty imposition.

Confiscation of Gold Items:
The judgment pertains to two appeals challenging the confiscation of primary gold, gold coins, and gold ornaments by the Collector of Central Excise & Customs. The appellants argued that the confiscated items were ancestral and not part of their business. The Collector ordered confiscation based on lack of a Gold Dealer's license and possession of more gold coins than allowed. The appellants contended that mere possession did not imply dealing in gold. The Tribunal found that the confiscation of 15 gold coins was unjustified as they were ancestral and not part of stock-in-trade, setting them aside.

Applicability of Gold Control Act:
The Collector contended that the primary gold and ornaments were part of a clandestine business due to lack of declarations and other circumstantial evidence. The Tribunal found that the Collector's order was justified, as the seized items were not family ornaments but likely part of an illegal business. The Tribunal upheld the confiscation of primary gold and gold ornaments, noting the absence of a Gold Dealer's license.

Possession of Gold Coins:
The Collector argued that the possession of more than 5 gold coins without declaration was a violation of the Gold Control Act. The Tribunal rejected this argument, stating that the coins were ancestral and not subject to the possession limit. The confiscation of 15 gold coins was set aside, and they were to be returned to the appellants.

Justification of Confiscation:
The Tribunal found that the primary gold and gold ornaments were likely part of an illegal business operation due to the nature of the items seized and the lack of proper documentation. The Tribunal upheld the confiscation of primary gold and gold ornaments, emphasizing the need for a Gold Dealer's license to engage in such activities.

Penalty Imposition:
The Collector imposed penalties on the appellants, which the Tribunal reviewed. The penalty on the mother was set aside as she was not directly involved in the business, unlike the son. The penalty on the son was upheld, along with the fine imposed in lieu of confiscation. The Tribunal confirmed the penalties and fines imposed on the son, while overturning the penalty on the mother.

In conclusion, the Tribunal confirmed the confiscation of primary gold and gold ornaments, along with the penalties and fines imposed on the son. The confiscation of 15 gold coins was set aside, and the penalty on the mother was overturned.