Statutory presumption for smuggled gold bars applied where seizure evidence and the accused's admission proved their character and unlawful possession.

Seizure of gold bars with foreign markings, supported by the seizure mahazar, the seizing officer's evidence, the goldsmith's test, and the respondent's own statement, was held sufficient to prove that the articles were gold bars. The Court found that the respondent's statement had to be read as a whole and that its clear admission of gold recovered from his box could not be ignored because another part was exculpatory. As the seizure attracted the statutory presumption of smuggled character, the burden shifted to the respondent to prove lawful import or possession, and that burden was not discharged. The conviction and sentence were restored.

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Issues: Whether the prosecution established that the metallic bars seized from the respondent were gold bars and that they were smuggled goods, so as to sustain the conviction under the Customs Act and the Gold (Control) Act.

Analysis: The prosecution relied on the seizure of 28 gold bars with foreign markings, the seizure mahazar, the evidence of the seizing officer and the goldsmith who tested the bars, and the respondent's own statement before the court admitting that gold had been recovered from his box. The Court held that the High Court had taken an unduly technical view in rejecting the evidence of the goldsmith and in treating the respondent's statement as incapable of being read in parts. The statement, read as a whole, contained a clear admission that gold was recovered from the respondent's box, and the surrounding evidence sufficiently proved the character of the seized articles as gold bars. Since the bars were seized in circumstances attracting the statutory presumption, the burden shifted to the respondent to prove that they were not smuggled goods, and that burden was not discharged.

Conclusion: The prosecution proved the seizure of smuggled gold bars from the respondent. The High Court's acquittal was erroneous and the conviction and sentence were restored, in favour of the Revenue.

Final Conclusion: The respondent's conviction for offences connected with possession of smuggled gold was upheld on the basis of the statutory presumption and the evidence on record.

Ratio Decidendi: When goods are seized from a person in circumstances attracting the statutory presumption of smuggled character, and the surrounding evidence establishes their nature, the burden lies on the possessor to prove lawful import or possession; an admission by the accused may be read as a whole, but a clear inculpatory part cannot be ignored merely because another part is exculpatory.

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