Proper service of show cause notice is essential; penalty failed where notice under the Gold Control law was not proved served.

Penalty under the Gold (Control) Act could not be sustained where service of the foundational show cause notice was not proved. The record did not show proper dispatch and delivery or return of the notice, and mere simultaneous display on office notice boards was not treated as valid service under the Act. Because the appellant was not given an effective opportunity of hearing, the notice requirement and principles of natural justice were held to be breached. The penalty order was therefore set aside, with liberty to proceed again after due notice.

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Issues: Whether the penalty order could stand when the show cause notice was not proved to have been served on the appellant and the requirement of service under the Gold (Control) Act was not satisfied.

Analysis: The appeal arose from an order imposing penalty under the Gold (Control) Act. The appellant contended that the foundational show cause notice had not been served, and the record did not establish dispatch followed by delivery or return of the notice. Mere simultaneous display of the notices on office notice boards was not accepted as service within the meaning of the Act. The absence of proper service deprived the appellant of an effective opportunity of being heard and amounted to breach of natural justice.

Conclusion: The penalty order could not be sustained against the appellant and was set aside, with liberty to readjudicate after notice.

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