PerC.N.B. Nair :

The case involves seizure of 37 bars of silver weighing less than 30 Kgs on 19.9.94 by the Officers attached to Central Preventive Unit, Salem. The seizure was made in the shop of the appellant Shri K.N. Iswaran.

2. Learned Counsel representing the appellant submitted that Shri Iswaran was a jeweller making various ornaments out of silver. In the course of the practice of his profession, he receives silver from various parties, converts them into ornaments and returns them to the principal. He works in the capacity of a job worker in such cases. He also does manufacture of silver ornaments on his own.

3. Ld. Counsel submitted that the entire proceedings were bad inasmuch as the seizure of the goods were in violation of the guidelines issued by the Central Board of Excise Customs to field formations under telex F.No. 394/233/880-CUS. (AS) dated 11.6.90. The Government had directed all field formations that the provisions of Section 123 of the Customs Act, 1962 should not be invoked against persons who are found to be in possession of silver bullion of less than 100 kgs. The exception permitted was in cases where the silver bullion is found to be in the form of b