Court affirms gold confiscation proceedings under new law despite rule repeal.

The Court affirmed the continuation of proceedings initiated under the notice for gold confiscation issued under the Gold Control Rules, 1963, despite the repeal of the rules and enactment of the Gold (Control) Ordinance, 1968. The appellant's challenge regarding the validity of the notice under the new ordinance was dismissed. The Court interpreted Section 6 of the General Clauses Act, 1897, holding that actions under the old rules could continue under the new Act unless expressly revoked. The appeal was dismissed, confirming the continuation of proceedings under the new law.

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Issues:
1. Validity of notice issued for confiscation of gold seized under Gold Control Rules, 1963.
2. Continuation of proceedings under Gold (Control) Ordinance, 1968 after repeal.
3. Interpretation of Section 6 of the General Clauses Act, 1897 in relation to repealed laws.

Analysis:

Issue 1: Validity of notice for confiscation of gold seized
The case involved a challenge to a notice issued under the Gold Control Rules, 1963 for the confiscation of gold seized from the appellant. The High Court upheld the validity of the notice for confiscation but ruled the penalty proceedings as invalid. The Collector of Central Excise later informed the appellant that the notice was confined to the confiscation of the gold seized. The President withdrew the emergency proclamation, and the Gold (Control) Ordinance of 1968 replaced the relevant provisions. The appellant contended that the notice was no longer valid under the new ordinance.

Issue 2: Continuation of proceedings under Gold (Control) Ordinance, 1968
The Gold (Control) Ordinance of 1968 repealed the relevant provisions of the Defence of India Rules, 1962. Section 117 of the Ordinance provided for the repeal of the previous rules and the continuation of actions taken under those rules if not inconsistent with the new provisions. The appellant argued that the notice issued under the old rules could not continue under the new ordinance due to the absence of provisions for declarations related to primary gold possession.

Issue 3: Interpretation of Section 6 of the General Clauses Act, 1897
The Court analyzed the application of Section 6 of the General Clauses Act, 1897 in relation to the repealed laws and the new enactments. It was held that since the provisions of the Gold (Control) Act, 1968 were not inconsistent with the previous rules, actions taken under the old rules were deemed to continue under the new Act. The absence of a saving clause in the new enactment was not decisive, and the rights and liabilities under the repealed law were deemed to continue unless expressly taken away by the new enactment.

In conclusion, the Court agreed with the High Court that the proceedings initiated by the Collector of Central Excise under the notice dated June 5, 1965 were deemed to be continuing under the new Gold (Control) Act, 1968. The appeal was dismissed, affirming the continuation of the proceedings with costs.

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