Voluntary Disclosure Scheme immunity protected primary gold from confiscation where no proceeding was pending under the Gold Control Act.

A declaration under the Voluntary Disclosure Scheme for primary gold was held to confer immunity where no proceeding under the Gold Control Act was pending when the declaration was made. Mere correspondence between departments did not amount to a pending proceeding, and the Scheme expressly covered primary gold. As the gold had not been seized or confiscated before the declaration, it was not liable to confiscation or penalty under the Gold Control Act.

---

---

Issues: Whether the declaration made under the Voluntary Disclosure Scheme for primary gold entitled the appellants to immunity so as to preclude confiscation and penalty under the Gold Control Act.

Analysis: The declaration was made under the Voluntary Disclosure Scheme before any proceeding under the Gold Control Act could be said to be pending against the appellants. Mere correspondence between the Central Excise Department and the Income-tax Department did not amount to a pending proceeding. The Scheme expressly extended to primary gold, and the facts did not show that the gold had been seized or confiscated under the Gold Control Act before the declaration was made.

Conclusion: The appellants were entitled to the protection of the Voluntary Disclosure Scheme, and the gold was not liable to confiscation. The issue is decided in favour of the assessee.

---