1985 (8) TMI 176 - AT - Indian Laws

Tribunal upholds confiscation, sets aside personal penalty for retired individual. Appeal mostly rejected.

SG. KAIGAONKAR AND OTHERS Versus GOLD CONTROL ADMINISTRATOR

SG. KAIGAONKAR AND OTHERS Versus GOLD CONTROL ADMINISTRATOR - 1986 (23) E.L.T. 523 (Tribunal) Issues Involved:1. Denial of opportunity for cross-examination and production of documents.2. Impact of acquittal in criminal proceedings on adjudication.3. Justification for non-maintenance of statutory registers.4. Acceptance of explanation for seized gold ornaments.5. Imposition of personal penalty on an aged partner.Detailed Analysis:1. Denial of Opportunity for Cross-Examination and Production of Documents:The appellants contended that during the adjudication proceeding, their request to cross-examine the investigation officer and to furnish a copy of the investigation report was denied. They argued that the Gold Control Administrator had permitted them to make a fresh application for production of documents and witness examination, but the Collector proceeded without affording this opportunity. The Tribunal found no merit in this contention, noting that the appellants did not make any subsequent request for cross-examination or document production after the Administrator's order. The Tribunal upheld the Collector's decision, stating that the appellants' earlier request did not subsist without a renewed application.2. Impact of Acquittal in Criminal Proceedings on Adjudication:The appellants argued that their acquittal by the Chief Judicial Magistrate on the same charges should invalidate the confiscation and penalties imposed in the adjudication proceeding. The Tribunal rejected this argument, emphasizing that the scope and standards of proof in criminal proceedings differ from those in adjudication proceedings. The Tribunal noted that the Magistrate's judgment relied heavily on defense witnesses and did not consider the reasons provided by the adjudicating authority. Additionally, the department had appealed the acquittal, and the appeal was pending. Thus, the Tribunal concluded that the acquittal did not automatically nullify the adjudication order.3. Justification for Non-Maintenance of Statutory Registers:The appellants contended that the non-maintenance of registers G.S. 11 and 12 was due to their unavailability at Ahmednagar and the need for embossing with the Gold Control Officer's seal. The Tribunal acknowledged this explanation but emphasized that the case involved not just non-maintenance of accounts but also unexplained possession of new gold ornaments weighing 1548.750 grams. The Tribunal upheld the Collector's order of confiscation and redemption fine, finding the appellants' explanation insufficient to challenge the confiscation.4. Acceptance of Explanation for Seized Gold Ornaments:The appellants claimed that the seized gold ornaments were purchased by the third appellant, supported by vouchers and seller statements. The Tribunal found the Collector's rejection of this explanation justified. It noted that on the date of seizure, the appellants present could not explain the possession of the excess gold. The Tribunal found it implausible that the third appellant, who returned on the night of the seizure, did not promptly provide the vouchers or explain the purchase. The Tribunal concluded that the subsequent explanation and evidence were fabricated for the case, upholding the Collector's rejection of the appellants' explanation.5. Imposition of Personal Penalty on an Aged Partner:The appellants argued that the first appellant, an aged person who had retired from the business, should not have been penalized personally. The Tribunal agreed, citing Section 93 of the Gold Control Act, which holds individuals responsible only if they were in charge of and responsible for the firm's conduct. The Tribunal found positive evidence that the first appellant was not involved in the business at the relevant time, as both he and his son stated that he had retired. The Tribunal ruled that the Collector erred in imposing a personal penalty on the first appellant and ordered its refund.Conclusion:The Tribunal upheld the confiscation and redemption fine while rejecting the appeal on most grounds. However, it set aside the personal penalty imposed on the first appellant due to his non-involvement in the business. The appeal was otherwise dismissed.