C.T.A. Pillai, Member (T)

1. This is a transferred appeal under Section 82-K of the Gold (Control) Act and is directed against Order No. VIII (Cus.) 110-1/77 Adj 834, dated 21-4-79 passed by the Collector of Central Excise Customs Pune. By that order the Collector had ordered confiscation of six bars of primary gold weighing 1870 gms and 96 gold coins weighing 768 gms. under Section 71(1) of the Gold (Control) Act, 1968, The confiscated goods had been allowed to be redeemed on payment of Rs. 31,000-and subject to further conditions regarding conversion after redemption. A penalty of Rs. 5000/- had also been imposed on the Appellant under Section 74 of the Act.

2. The brief facts of the case are that Income-tax authorities searched the premises of the Appellant at Shahapur. Among other things, they found 6 gold chips and 96 gold coins referred to above. All the items except 6 gold coins were found concealed in a wall inside the Ganesh cupboard and 6 gold coins were found in the cupboard itself. The appellant denied knowledge of the existence of the 6 gold chips and 90 gold coins dug out of the wall and stated that the other 6 gold coin were used for Pooja purposes. It was claim