GUNWANTLAL GODAWAT vs UNION OF INDIA CUSTOM AND CENTRAL EXCISE THROUGH COMMISSIONER

The Supreme Court upheld the Rajasthan High Court's decision which quashed the confiscation order of gold under Rule 126M of the Defence of India Rules, 1962, due to the lack of a personal hearing for the appellant's father and failure to provide an opportunity to redeem the seized gold. The Court emphasized that the principles of natural justice must be adhered to in administrative proceedings, particularly when significant penalties are imposed. The matter was remitted back to the Collector for fresh examination in compliance with due process.