1987 (5) TMI 354

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....3 and a penalty of Rs. 1,000/- under Section 71 of the Gold Control Act, 1968 ('Act' for short). 2.  The appellant is a pawn broker. On 23-3-1985 at about 4.00 P.M. the Superintendent of Customs and Central Excise, Vijayawada, visited the appellant's shop at No. 53, Pattabhi Market, Machilipatnam, and found the following ornaments :- Sl. No. Description of the ornaments No. No. Net Qtty. In Gms Purity Value    Rs. Remarks. 1. Gold Bangles -- 2 23.720 18 Ct. 3,795/- New oranment with new dharmakata slip dated 9-3-1985 on reverse of slip ther is indication of quantity of gold given etc. 2. Gold Bangles -- 1 7.850 18 Ct. 1,255/- -do- 18-3-1985 3. Gold e....

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....ely on the basis of surmises and on the ground that the ornaments under seizure were allegedly kept in the showcase of the appellant's shop. It was further contended that in order to sustain a charge under Section 27(1) there must be acceptable legal evidence on record to show that the appellant was dealing in gold as a dealer in contravention of law or that the appellant was carrying on business as a dealer or had commenced business as a dealer without any licence. The learned Consultant further urged that items covered by Serial No. 8 and 9 above are ornaments of 14 Ct. purity and could not have been manufactured in the recent times since it is common knowledge that nobody would normally buy 14 Ct. ornaments when ornaments of 18 Ct. purit....

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....ents under seizure are new and the pawn tickets 700 and 708 do not tally with the ornaments either in terms of weight or quantity. Another reason given by the original authority is that the ornaments being new could not have been pledged with the pawn broker and need not have been kept in the show-case. It is not disputed before me by the learned Department Representative that Items 8 and 9 viz. 22 ear studs are of 14 Ct' purity. One important factor I should like to take note of from the list of inventory is that the items covered by Serial No. 3, 5 and 8 are without screws Land normally one would not be able to deal with ear-studs as a dealer without studs having screws. The Madras High Court in the case of Kanyalal Chandrakumar v. Union ....