Licensed gold dealer liability for unaccounted gold: concealed recovery, voluntary statements, and unrebutted presumption sustained confiscation.

A licensed gold dealer was treated as responsible for accounting for gold and ornaments found in the business premises, even where statutory forms were relied on and the articles were said to belong to relatives. Inculpatory statements by the dealer and his son were accepted as voluntary, the belated retraction was rejected, and concealed chits supported an adverse inference of unaccounted trading. The presumption of ownership against the person in possession was applied and not rebutted. Confiscation and penalty were sustained in principle, while the redemption fine and penalty were reduced.

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Issues: Whether a licensed gold dealer could be held liable for confiscation and penalty in respect of unaccounted gold and ornaments found concealed in the licensed premises, and whether the recorded statements, seizure materials, and additional evidence displaced the finding of contravention.

Analysis: The gold and ornaments were recovered from the dealer's licensed premises and were not accounted for. The Tribunal held that a licensed dealer is bound to account for all gold and ornaments found in the business premises, and the statutory forms under section 55 were not decisive where the seized articles were kept in the shop for sale. The inculpatory statements of the dealer and his son were accepted as true and voluntary, and the belated retraction was found unconvincing. The recovery of 18 chits from a concealed place in the shop supported an adverse inference that the dealer was dealing in gold outside the books. The plea that the articles belonged to relatives was rejected, as was the challenge based on alleged limitations on recording statements after office hours. The Tribunal also declined to place weight on additional evidence and on the supposed acceptance of the dealer's explanation by income-tax and sales-tax authorities. The presumption under section 99 was applied against the person in possession, and it was held not to have been rebutted.

Conclusion: The confiscation and penalty were upheld in principle, but the redemption fine and penalty were reduced.

Final Conclusion: The appeal succeeded only to the limited extent of reduction in the quantum of fine and penalty, while the finding of contravention and the consequential liability were maintained.

Ratio Decidendi: A licensed gold dealer must account for gold and ornaments found in the business premises, and where recovery from concealed premises is supported by voluntary inculpatory statements and unrebutted statutory presumption of ownership, belated retraction and unsupported claims of third-party ownership will not displace liability.

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