Mandatory notice for confiscation must be served, not merely despatched, before seized gold can be retained.

Under Section 79 of the Gold (Control) Act, 1968, written notice to initiate confiscation proceedings had to be given within six months of seizure, and mere despatch was insufficient unless the notice reached or was tendered to the person concerned. Applying the same principle as under analogous customs provisions, the Orissa HC held that failure to serve notice within the statutory period triggered the vested right to return of the seized gold under the second proviso. As no notice was shown to have been received or tendered within six months, the confiscation, appellate and revisional orders were quashed and return of the seized articles was directed.

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Issues: Whether, under Section 79 of the Gold (Control) Act, 1968, the notice required to initiate confiscation proceedings was duly given within six months of seizure when it was merely despatched but not shown to have been received or tendered within that period, and whether the seized gold was therefore liable to be returned.

Analysis: Section 79 makes the giving of written notice within six months a mandatory condition for confiscation or penalty proceedings, and the second proviso confers a right to return of the seized goods if no such notice is given within that period or within duly extended time. On the reasoning adopted from the analogous provisions of the Customs Act, mere despatch of notice does not complete the act of giving notice; the notice must reach the person concerned or be tendered to him. If that is not done within six months, a vested civil right to restoration of the seized goods accrues. On the facts, no notice was shown to have reached the petitioner or been tendered to him within the prescribed period.

Conclusion: The notice was not validly given within six months, the petitioner acquired a right to return of the seized articles, and the confiscation, appellate, and revisional orders were quashed with a direction to return the seized goods.

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