TaxTMI 
TaxTMI 
1981 (8) TMI 217
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....16 of the Act for being in possession of gold ornaments the total weight of which was found to be 3254.00 grammes which exceeded the exemption limit of 2000.00 grammes in respect of which a declaration ought to have been filed in accordance with the provisions of section 16 of the Act. The Collector, Central Excise, therefore, confiscated the household ornaments weighing 1500.00 grammes under section 71 of the Act with an option to redeem the same, if so desired, on payment of a fine of Rs. 60,000.00. A fine of Rs. 10,000.00 was also imposed under Section 74 of the Act. The pledged ornaments, weighing 1754.00 grammes were, however, released. 2. On appeal against the aforesaid order, the Gold Control Administrator, Delhi, by his order dated 21st May, 1977 (Annexure VIII) reduced the redemption fine only from Rs. 60,000.00 to Rs. 20,000.00. In revision before the Central Government, the order of the appellate tribunal was further modified to the extent that the amount of penalty imposed under section 74 of the Act was reduced from Rs. 10,000.00 to Rs. 2,500.00 only. Vide order of the Central Government dated 31st August, 1979 (Annexure XI). During the pendency of the revision....
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.... the removal of doubts, it is hereby declared that the declaration referred to in this section shall be made, in relation to any article, or ornament or both- (a) owned by a minor or a lunatic, by the guardian or manager of such minor or lunatic, as the case may be; (b) owned by an idol or a deity, by the manager of such idol or deity, whether known as shebait or by any other name; (c) owned, possessed, held or controlled by a person whose properties are under the management of any administrator or receiver, by such administrator, or receiver; (d) owned, possessed, held or controlled by a person whose properties are under the management of a Court of Wards, by the manager of such Court; (e) vested in an executor or an administrator of a will or other testamentary disposition, by such executor or administrator; (f) owned, possessed, held or controlled by the members of a firm, by any partner of such firm; (g) owned, possessed, held or controlled by a Hindu Undivided family, by the head or Karta of such family; (h) which is the subject-matter of any public or private trust, by the trustee of such trust; (i) owned, possessed, held or controlled by a company,....
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....ld or controlled, unless the total weight of such ornaments or both articles and ornaments, as the case may be, owned, possessed, held or controlled by - (i) an individual who is not a member of a family, exceeds two thousand grammes; (ii) a family, exceeds four thousand grammes; (c) in relation to any ornaments, or both articles and ornaments, owned, possessed, held or controlled by any person, referred to in clauses (b) to (f) and (h) to (m) of sub-section (2), unless the total weight of such ornaments, or both articles and ornaments, exceeds two thousand grammes. (6) For the purposes of this section, "family" shall be deemed to consist of- (i) the husband, wife, one or more minor children; or (ii) any two or more of them, but shall not be deemed to include any other person. (7) Every licensed dealer or refiner shall make a declaration or further declaration, as the case may be, in accordance with the provisions of this section in relation to any gold owned, possessed, held or controlled by him in any capacity other than the capacity of a licensed dealer or refiner and the provisions of sub-section (5) shall not apply to such gold. Explanation.- Where the ....
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....except a minor in the first category who is entitled to hold articles the total weight of which does not exceed 20 grammes. It is pertinent to note that the category No. (iv) excludes the coverage of clauses (a) and (g) of sub-section (2) as they refer to a minor and Hindu undivided family respectively, because they have already been given a separate category Nos. (i) and (iii) in clause (a) of sub-section (5). Sub-section (5) (b) provides that no declaration is required to be made if the total quantity of ornaments or both ornaments and articles, owned, possessed, held or controlled by an individual who is not a member of a family does not exceed 2000.00 grammes and in the case of a family it does not exceed 4000.00 grammes. Again sub-section (5)(c) provides that no declaration is required to be made by any person referred to in clauses (b) to (f) and (h) to (m) of sub-section (2) if the total quantity of ornaments, or both articles and ornaments, does not exceed 2000.00 grammes. As said earlier, late Amolakchand was a pawnee in respect of 1754.00 grammes of ornaments and he fell in the residuary clause (a) of sub-section (2) in relation to those ornaments. 7. A careful re....
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....bed limit. Again, if a person holds ornaments or both articles and ornaments in various capacities for others as referred to in clauses (b) to (f) and (h) to (m) of sub-section (2) and in each case to the maximum prescribed quantity and if the principle of clubbing is accepted (which does not appear the intention of the legislature for obvious reasons), it would lead to hazardous results. 8. From the above discussion, it follows that a person may hold ornaments or both articles and ornaments to the maximum prescribed limit in his individual capacity as well as in the capacity of any other person referred to in Clauses (b) to (f) and (h) to (m) of sub-section (2) of section 15 and therefore, for purposes of making a declaration under section 16(1) or (3) it is not necessary for such a person to club both the holdings together, because a person while holding any ornaments or both articles and ornaments for others as referred to above, he does not lose his personal right as an individual to hold and possess the same up to the prescribed quantities under the Act and his right of personal holding will not be effected by the quantities of articles and ornaments possessed, held or....