1988 (2) TMI 304 - AT - Central Excise

Tribunal overturns license suspension order, stresses proper procedure under Gold Act

The Tribunal set aside the order confirming the suspension of the appellant's license under the Gold (Control) Act, 1968. It emphasized that the ... Gold dealer’s licence Issues:1. Validity of the order of suspension of the appellant's license under Section 50(1) of the Gold (Control) Act, 1968.2. Jurisdiction and authority of the Assistant Collector to order suspension and continuation of suspension.3. Competence of the Assistant Collector vis-a-vis the Collector in adjudication proceedings.4. Applicability of Section 50(1A) of the Act in case of contraventions by the licensee.Analysis:Issue 1: Validity of the order of suspension of the appellant's license under Section 50(1) of the Gold (Control) Act, 1968.The appeal was against the order confirming the suspension of the appellant's license due to contraventions of the Act. The Assistant Collector suspended the license on reasonable belief of contravention, followed by an extension of suspension pending enquiry. The appellant argued that suspension before the show cause notice was without jurisdiction. The Collector upheld the suspension, leading to the appeal.Issue 2: Jurisdiction and authority of the Assistant Collector to order suspension and continuation of suspension.The appellant contended that the Assistant Collector lacked the authority to suspend the license before the issuance of a show cause notice. The Senior D.R. argued that the Assistant Collector had the power to suspend and continue suspension pending enquiry or trial under Section 50(1) of the Act. The delegation of power by the Government of India was cited to support this argument.Issue 3: Competence of the Assistant Collector vis-a-vis the Collector in adjudication proceedings.The Tribunal noted that the Collector was already adjudicating the matter, making it inappropriate for the Assistant Collector to intervene with suspension orders. While not questioning the Assistant Collector's jurisdiction, the Tribunal suggested that the Collector should decide on the suspension of the license pending enquiry due to the ongoing adjudication proceedings.Issue 4: Applicability of Section 50(1A) of the Act in case of contraventions by the licensee.The Tribunal highlighted that if the Collector found contraventions warranting cancellation of the license under Section 50(1A) of the Act, the appellant should be given a fresh show cause notice and an opportunity to be heard. The Tribunal recommended that the Collector consider the suspension of the license pending enquiry before him.In conclusion, the Tribunal set aside the impugned order without expressing an opinion on the merit of the issue. It emphasized that the Collector, as the adjudicating authority, should exercise powers under Section 50(1) of the Gold (Control) Act, 1968, and decide on the suspension of the appellant's license.