Page 218 - ELT_3rd_1st May 2020_Vol 372_Part

440 EXCISE LAW TIMES [ Vol. 372

pointed loam arcs indicating extracted out from melted con-
centrate, as high specific gravity of gold develops into tear
drop with sharp pointed end on opposite side. Sharp pointed
features are never observed in Natural Gold Nuggets.
(4) Soil Analysis
Chemical analysis of the soil as shown in the above table indicates that
the soil is dominantly quartz bearing. The colour of the soil is largely
due to iron. The soil is a silty (0.05-0.002 mm) variety of equal grain,
size and less clayey. Seem to have been derived due to weathering of
old crystalline rocks in the areas of low rainfall. The soil along with
gold metals seems to be bind together using some cement. The type of
cement used is not very clear at present.
The chemical analysis and X-ray diffraction do not show presence of
sulphide or arsenic minerals or oxide of these elements as they are
commonly associated with gold. Erosion of the gold source area usu-
ally brings these minerals and elements enriched in the soil too.
The powder X-ray diffraction indicates the soil contain kaolinite clay
together with quartz and dolomite (MgCO 3). Minor amount of hema-
tite is also observed. Surprising the present soil sample show absence
of any clay minerals less than 10 A d-spacing. The soil seemed to have
been partially heated or baked,
Based on above results and observation the sample given for analysis is not
NATURALLY OCCURRING. It contains man-made 18 carat GOLD
NUGGETS mixed in red soil in the form of lumps.
Presence of the cement variety is not detected. However, the use of some form
of cement is not ruled out.
The soil is reddish brown coloured soil, however, it cannot be concluded
whether it is the Red-Indian soil (GERU).
Natural native gold nuggets usually have > 90 wt% Au. Presence of ~18%
Cu in the sample seems to have been added or 18 carat gold or gold jewellery
has been melted produce gold nuggets to show it as gold ore placer deposits.
It is seen that in the above report of IIT Professor clearly states that Sharp pointed
features are never observed in Natural Gold Nuggets. He has also pointed out
that gold metal are bulbed, tear drop or highly irregular very sharp edged, or
elongated needle shaped features. He also observed that the tear and bulbed
shaped nuggets clearly shows sharp pointed features indicating extracted out
from melted concentrate as high specific gravity of gold develops into tear drop
with sharp pointed end on opposite side. This observation of the IIT Professor
has not been challenged in the cross-examination by any question. It is seen that
there is no use of word usually in the said observation and the word used is
‘never’. This in fact corroborates the allegation that the goods were not of natural
origin.
6.8 Moreover even if the goods imported correspond to all the defined physi-
cal/chemical parameters of ‘Ores’, the same cannot be called ‘ore’ if they are not naturally
occurring material but are produced in a workshop.
7. The next issue relates to the Confiscation and imposition of Redemp-
tion fine. The confiscation has been ordered under Section 111(d) and (m) of the
Customs Act, 1962. We uphold the confiscation. We find that Redemption fine of
Rs. 60 lakhs has been imposed on the goods of declared value of Rs. 1.32 Crores.
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