Gold Balas Are Gold Ornaments Having Definite Shape To Be Worn By The Local People: CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has released the gold balas from custody and held that gold balas are gold ornaments having a definite shape to be worn by the local people.

The bench of P.K. Choudhary (Judicial Member) has observed that the Gold Control Act of 1968 has already been repealed since 1990. Under the new fiscal policy, the possession of gold is not an offense.

Following the raid on the Appellant's residential premises by the Central Excise Staff, a proceeding was initiated for the seizure of gold ornaments pledged with the Appellant's family and gold ornaments belonging to the family itself.

The adjudicating authority held the eleven gold balas as primary gold, passed an order of confiscation under Section 73 of the Gold Control Act, and also levied a fine of Rs. 2,50,000.

The appellant claimed that the 1968 Gold Control Act had already been repealed in 1990. The tribunal held that, under the new fiscal policy, possession of gold is not an offense. That is most likely why the 1968 Gold Control Act was repealed. Since the matter has not been adjudicated by the adjudicating authority for a long period of time, as directed by the High Court, and in the meantime, the Act itself has been repealed for 30 years, it was not just and proper for the respondent or the department to adjudicate under the Act, which has been repealed for a long time and possession of gold is no longer an offense, and as such, the order passed by the respondent is whimsical and based on a complete lack of application of his judicial mind.

The appellant contended that there were pictures of gold seized. If those pictures are perused, a correct conclusion can be drawn that these are in the form of ornaments and they are worn by the people of western Odisha.

The tribunal has noted that a definite shape has been given to the gold Balas in question, and had it been primary gold, it would have been a simple gold rod, plate, or piece, and it should not have been bent and also given a certain shape, which is evident from the picture. Therefore, there is no room for doubt that these gold Balas are gold ornaments having a definite shape to be worn by the local people.

The court held that the seized gold Balas are ornaments and may be released to the appellant.

Case Title: Sailendra Narayan Panda Versus Pr. Commissioner of CGST & CX, Bhubaneswar

Citation: Excise Appeal No.75629 of 2022

Date: 06.01.2023

Counsel For Appellant: Advocate J.N.Panda

Counsel For Respondent: Authorized Representative J.Chattopadhyay

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