Customs presumption in gold confiscation: concealed, unaccounted ingots and false denial justified seizure of the entire quantity.

Customs confiscation of concealed gold was upheld where foreign-marked ingots were hidden in a bathroom, omitted from accounts, and falsely denied, because those admitted circumstances were sufficient to create a reasonable belief of smuggled character and activate the statutory presumption under customs law. The complaint of breach of natural justice also failed, as the decision rested on admitted facts and there was no prejudice from not examining additional witnesses or permitting further cross-examination. Confiscation was not limited to the foreign-marked ingots alone: the concealment, false explanation, and statutory presumption supported confiscation of the entire quantity of gold ingots.

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Issues: (i) whether the confiscation of the gold was vitiated because the burden of proving smuggled nature was not discharged by the Department and the presumption under the customs law was not available; (ii) whether the order of confiscation was bad for breach of natural justice; (iii) whether the confiscation could extend to all the gold ingots, including those without foreign marks.

Issue (i): Whether the confiscation of the gold was vitiated because the burden of proving smuggled nature was not discharged by the Department and the presumption under the customs law was not available.

Analysis: The seizure was of gold with foreign marks, kept concealed in a bathroom, not entered in the account books, and preceded by false denial that any contraband gold was in possession. On those admitted circumstances, and in view of Section 178-A of the Sea Customs Act, the Department could rely on the statutory presumption once reasonable belief of smuggled character was shown. The circumstances, including the search warrant obtained under Section 172 of the Sea Customs Act, were sufficient to sustain that belief.

Conclusion: The contention was rejected and the presumption under the customs law was held available against the petitioners.

Issue (ii): Whether the order of confiscation was bad for breach of natural justice.

Analysis: The decision rested on admitted facts and circumstances, not on any undisclosed testimony. The nature of the goods was not in dispute, the petitioners had already admitted the articles were gold ingots, and there was no necessity to examine the appriser or the Superintendent of Central Excise for proving matters already admitted. The absence of cross-examination did not prejudice the petitioners on the facts of the case.

Conclusion: No breach of natural justice was made out.

Issue (iii): Whether the confiscation could extend to all the gold ingots, including those without foreign marks.

Analysis: The confiscation was based on the totality of the proved circumstances, not merely on the foreign marks on six ingots. The concealment, non-entry in accounts, false explanation, and the statutory presumption supported the inference that the entire quantity was smuggled.

Conclusion: The confiscation of all eight ingots was upheld.

Final Conclusion: The petition was held to be without merit and the confiscation order was sustained in full.

Ratio Decidendi: In customs confiscation matters, once reasonable belief of smuggled character is shown, the statutory presumption may shift the burden to the possessor, and an order based on admitted circumstances does not violate natural justice merely because no further witnesses are examined.

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