P.C. Jain, Member (T)

1. Facts in brief as alleged in the show cause notice dated 29.6.1981 commencing the proceedings in this case are as follows:

1.1 The shops of the first appellant, licensed gold dealer were searched by Income Tax authorities of Delhi on 16.6.1980. From shop No. 1734, 3 pcs. of primary gold weighing 59.700 gms. valued at Rs. 7760/- were recovered and seized by the Income Tax authorities as these were not accounted for.

1.2 From the other shop No. 307, Dariba Kalan, Delhi, gold ornaments weighing 923 500 gms. valued at Rs. 52,482/- were recovered and seized as unaccounted for by the Income Tax authorities. The matter was referred by the income Tax authorities to the Collector of Central Excise for enquiry and necessary action under the Gold (Control) Act, 1968.

1.3 The first appellant was summoned by the Supdt. Gold Control (Preventive) New Delhi. Shri Suresh Chand Jain, Partner of the first appellant appeared before the said Supdt. and tendered his statement on 19.2.1981. Be, inter alia, admitted the recovery of the aforesaid primary gold and gold ornaments and stated that these were not accounted for in their G.S. 11 and G.S. 12 registers He also stated that