TMI Blog1981 (8) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... o be 3254.00 grammes which exceeded the exemption limit of 2000.00 grammes in respect of which a declaration ought to have been filed in accordance with the provisions of section 16 of the Act. The Collector, Central Excise, therefore, confiscated the household ornaments weighing 1500.00 grammes under section 71 of the Act with an option to redeem the same, if so desired, on payment of a fine of ₹ 60,000.00. A fine of ₹ 10,000.00 was also imposed under Section 74 of the Act. The pledged ornaments, weighing 1754.00 grammes were, however, released. 2. On appeal against the aforesaid order, the Gold Control Administrator, Delhi, by his order dated 21st May, 1977 (Annexure VIII) reduced the redemption fine only from ₹ 60,000.00 to ₹ 20,000.00. In revision before the Central Government, the order of the appellate tribunal was further modified to the extent that the amount of penalty imposed under section 74 of the Act was reduced from ₹ 10,000.00 to ₹ 2,500.00 only. Vide order of the Central Government dated 31st August, 1979 (Annexure XI). During the pendency of the revision, petitioner s father, Amolakchand, died on 13-9-1978 and the revision was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to any article, or ornament or both- (a) owned by a minor or a lunatic, by the guardian or manager of such minor or lunatic, as the case may be; (b) owned by an idol or a deity, by the manager of such idol or deity, whether known as shebait or by any other name; (c) owned, possessed, held or controlled by a person whose properties are under the management of any administrator or receiver, by such administrator, or receiver; (d) owned, possessed, held or controlled by a person whose properties are under the management of a Court of Wards, by the manager of such Court; (e) vested in an executor or an administrator of a will or other testamentary disposition, by such executor or administrator; (f) owned, possessed, held or controlled by the members of a firm, by any partner of such firm; (g) owned, possessed, held or controlled by a Hindu Undivided family, by the head or Karta of such family; (h) which is the subject-matter of any public or private trust, by the trustee of such trust; (i) owned, possessed, held or controlled by a company, whether incorporated in or outside India, by any person in charge of the management of the affairs of such company; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an individual who is not a member of a family, exceeds two thousand grammes; (ii) a family, exceeds four thousand grammes; (c) in relation to any ornaments, or both articles and ornaments, owned, possessed, held or controlled by any person, referred to in clauses (b) to (f) and (h) to (m) of sub-section (2), unless the total weight of such ornaments, or both articles and ornaments, exceeds two thousand grammes. (6) For the purposes of this section, family shall be deemed to consist of- (i) the husband, wife, one or more minor children; or (ii) any two or more of them, but shall not be deemed to include any other person. (7) Every licensed dealer or refiner shall make a declaration or further declaration, as the case may be, in accordance with the provisions of this section in relation to any gold owned, possessed, held or controlled by him in any capacity other than the capacity of a licensed dealer or refiner and the provisions of sub-section (5) shall not apply to such gold. Explanation.- Where the licensed dealer or refiner is a company or other body corporate or a firm, the declaration referred to in this subsection shall also be made by every director o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) excludes the coverage of clauses (a) and (g) of sub-section (2) as they refer to a minor and Hindu undivided family respectively, because they have already been given a separate category Nos. (i) and (iii) in clause (a) of sub-section (5). Sub-section (5) (b) provides that no declaration is required to be made if the total quantity of ornaments or both ornaments and articles, owned, possessed, held or controlled by an individual who is not a member of a family does not exceed 2000.00 grammes and in the case of a family it does not exceed 4000.00 grammes. Again sub-section (5)(c) provides that no declaration is required to be made by any person referred to in clauses (b) to (f) and (h) to (m) of sub-section (2) if the total quantity of ornaments, or both articles and ornaments, does not exceed 2000.00 grammes. As said earlier, late Amolakchand was a pawnee in respect of 1754.00 grammes of ornaments and he fell in the residuary clause (a) of sub-section (2) in relation to those ornaments. 7. A careful reading of the aforesaid provisions of sub-sections (2) and (5) with its clauses (b) and (c) will go to show that any person may in relation to any ornaments, or both articles a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (2) and in each case to the maximum prescribed quantity and if the principle of clubbing is accepted (which does not appear the intention of the legislature for obvious reasons), it would lead to hazardous results. 8. From the above discussion, it follows that a person may hold ornaments or both articles and ornaments to the maximum prescribed limit in his individual capacity as well as in the capacity of any other person referred to in Clauses (b) to (f) and (h) to (m) of sub-section (2) of section 15 and therefore, for purposes of making a declaration under section 16(1) or (3) it is not necessary for such a person to club both the holdings together, because a person while holding any ornaments or both articles and ornaments for others as referred to above, he does not lose his personal right as an individual to hold and possess the same up to the prescribed quantities under the Act and his right of personal holding will not be effected by the quantities of articles and ornaments possessed, held or controlled by him for others in the capacities enumerated in sub-section (2). The household ornaments of Late Amolakchand as an individual, therefore, could not be clubbed togethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... club together the personal holdings of an individual and the holdings held by him for any other person or persons referred to in clauses (b) to (f) and (h) to (m) of sub-section (2), for purposes of declaration, then nothing prevented it to add the similar words in any capacity or in all capacities at the end of sub-sections (1) and (3) of section 16 of the Act which deal with the requirement of making a declaration. But it has not been so provided with a clear intention not to club the two. 11. As the petitioner is getting the relief on the first contention discussed above, it is therefore, not necessary for us to go into the other ground whether or not the ornaments seized from the Bank-locker belonged to the daughter of Late Amolakchand and by reason of which he was not responsible to make the declaration. 12. For the reasons stated above, the petition succeeds and is hereby allowed. The impugned orders (Annexures VI, VIII and XI) are quashed. The confiscated ornaments seized from the Bank-locker weighing 1500.00 grammes be released and returned to the petitioner. There will be no orders as to costs of this petition. The security amount be refunded to the petitioner. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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