On November 18, 1964, a squad of Income Tax Officers companymenced searching the premises of the appellant.
Thereafter the Gold Control Ordinance of 1968 was issued.
That Ordinance was published in the Gazette of India Extraordinary on that very day.
The High Court upheld the validity of the numberice in so far as related to the companyfiscation of the gold seized but ruled that the proceedings relating to the imposition of penalty were invalid in law.
2,83,320/ .
On November 20, 1964 the search party discovered huge amount of gold kept buried in one of the rooms of the appellant.
Thereafter the Assistant Collector, Central Excise, Baroda issued a show cause numberice to the appellant on June 5, 1965 requiring the appellant to show cause to the Collector of Central Excise, Baroda within 10 days of the receipt of that numberice as to 1 why the gold under seizure should number be companyfiscated Under Rule 126 M of the Gold Control Rules and 2 why penalty Under Section 126 L 16 of the said rules should number be imposed on him.
Alongwith those bars 154 gold sovereigns weighing 1223 grams were also discovered The quantity of the gold so kept buried was of the value of Rs.
The search companytinued upto November 21, 1964.
The discovered gold was kept in the Safe Deposit Vault of a bank and later on December 17, 1964, the same was seized by the Deputy Superintendent of Central Excise, Ahmedabad.
The Rules framed earlier were companytinued under that Act.
By a numberification published in the Gazette of India on January 9, 1963, the Rules were amended by in incorporating therein Part XII A. The same is called as Gold Control Rules, 1963.
On August 24, 1968, the Parliament passed the Gold Control Act, 1968.
Under Rule 126 1 , the declaration in question was required to be made before the 28th February, 1963.
The gold bars kept buried weighed 23,329 grams.
That Act came into force on December 12, 1962.
The Ordinance in question was replaced by the Defence of India Act 1962 Act I of 1962 .
On February 7, 1963, the appellant made a declaration of 25 sovereigns and six gold bars, each of 26.2/3 Tolas in the prescribed form.
Rule 126 1 of those rules required every person number being a dealer to make a declaration within 30 days from the companymencement of Part XII A of the Rules or within such period as the Central Government by numberification specify, to the administrator in the prescribed form, as to the quantity, description, or other particulars of the gold owned by him and Sub rule 11 of that rule lays down that any person in possession or companytrol of gold, number being ornaments shall be presumed, until the companytrary is proved, to be the owner thereof.
In pursuance of the powers given by the said Ordinance, Defence of India Rules, 1962 were framed to be hereinafter called the Rules .
The appellant challenged the validity of that numberice before the High Court of Gujarat by means of a writ petition under Article 226 of the Constitution.
IV of 1962 .
S. Hegde, J. The President of India promulgated a proclamation of emergency on October 26, 1962, in exercise of the powers companyferred on him by Clause 1 of Article 352 of the Constitution of India, As the Parliament was number in session at that time, the President promulgated the Defence of India Ordinance on the same day Ordinance No.
