Conscious possession of gold not proved; confiscation and penalty under the Gold Control law were unsustainable.

Conscious possession of gold chips and gold coins was not established where the goods were found only after several abortive diggings, undermining any inference of prior precise information or exclusive control. The surrounding circumstances, including the assessee's age at his father's death, the family's agricultural background, the presence of old coins in the household, and the account-book entries, were considered collectively but did not satisfy the statutory foundation for liability under the Gold (Control) Act. Confiscation and penalty were therefore unsustainable, and the decision favoured the assessee.

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Issues: Whether the appellant was in conscious possession of the gold chips and gold coins so as to justify confiscation and penalty under the Gold (Control) Act.

Analysis: The goods were discovered only after several abortive diggings, which negatived any inference that the authorities had precise prior information or that the appellant had exclusive control in the sense necessary to establish conscious possession. The surrounding circumstances, including the appellant's age when his father died, the agricultural background of the family, the existence of old coins in the household, and the entries in account books, were considered as a whole. On that material, the essential foundation for fastening liability under the provisions governing possession and declaration of gold was not made out.

Conclusion: Conscious possession was not established, and the confiscation and penalty were unsustainable. The decision was in favour of the assessee.

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