MALIMATH, C.J.

This is an appeal against the judgment of the learned single Judge in O.P. No. 171 of 1979. The relevant facts necessary for the disposal of this case may briefly be stated as follows : The appellant was a dealer in gold, holding licence issued by the Gold Control Licensing Authority. He was doing the business as a licensed gold dealer. On 9th July, 1974, the Superintendent of Central Excise, Integrated Divisional Office, Ernakulam and party searched the premises of the appellant and seized gold ornaments weighing 2029.500 grams under a mahazar prepared on the occasion. That was done on the allegation that the appellant had violated the provisions of S. 55 of the Gold Control Act, 1968 (hereinafter referred to as 'the Act'), the appellant not having entered the possession of the said gold ornaments in the accounts which were required to be maintained in accordance with the said statutory provision. The appellant was duly served with notice under S. 79 of the Act on 11th January, 1975 requiring him to show cause as to why the seized gold should not be confiscated and as to why penalty should not be imposed under S. 74 of the Act. The appellant filed a repr