1988 (2) TMI 304

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....f the Collector of Central Excise (Appeals), Madras, dated 10.12.1987 confirming the order of the Assistant Collector of Central Excise, Trivandrum Division, dated 13.11.1987 extending the suspension of the appellant's licence in terms of Section 50(1) of the Gold (Control) Act, 1968, the 'Act' for short. 2. The Central Excise Officers attached to the Headquarters Preventive, Cochin, seized gold ornaments weighing 8083.300 gms. and one gold bar of foreign origin weighing 100 gms. totally valued at Rs. 24,54,990 on 30.10.1987 kept concealed in the licensed premises of the appellant at Kayamkulam, Kerala State. On 4.11.1987 the Assistant Collector of Central Excise, Trivandrum, on a reasonable belief that the appellant has contravened the ....

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....uld culminate in the issuance of a show cause notice and it is only from that moment an enquiry can be said to be pending. It was urged that in the present case the show cause notice was issued on 17.11.1987 by the Superintendent of Central Excise calling upon the appellant to show cause to the Collector of Central Excise, Cochin, against the various contraventions alleged therein. The learned counsel, therefore, submitted that the order of interim suspension followed by a further order of continuance of the suspension before the issuance of the show cause notice is without jurisdiction. The learned counsel further urged that the order of the Assistant Collector extending the suspension "until further orders vacating this order, are issued"....

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....0(1) of the Act. The learned Senior D.R. further submitted that there is no warrant in law for the contention that enquiry can be said to commence only after the issue of a show cause notice. Having regard to the scheme of the Act, the learned Senior D.R. urged, the Assistant Collector being a competent authority to grant licence has also been invested with powers to order suspension and cancellation of the licence under the relevant provisions of the Act. 5. We have carefully considered the submissions made before us. In the present case the fact remains that a show cause notice calling upon the appellant to show cause to the Collector of Central Excise against the alleged acts of contravention has been issued on 17.11.1987 and the Coll....

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....n of the licence. We have had occasions in some of our earlier orders under the Act to refer to the instructions of the Ministry's letter F. No. 132/6/85-G.C., dated 27.2.1987 whereunder the Government have issued clarifications in regard to renewal, suspension and cancellation of Gold Dealer's licence, etc. The instructions of the Ministry call for caution and circumspection in regard to suspension and cancellation of licences under Section 50(1) of the Act and keeping those instructions in mind in the facts and circumstances of this case, we feel that in the interests of justice the Collector of Central Excise, who is now the adjudicating authority, can consider the question relating to suspension of the appellant's licence. 6. Under S....