Statutory presumption for smuggled gold upheld where foreign-marked bars were concealed and lawful possession was not proved.

Gold bearing foreign markings seized from a scooter concealed in the petrol tank triggered the statutory presumption under Section 123 of the Customs Act, 1962. The evidence of seizure officers, the mechanic and an attesting witness, together with the accused's own statement, showed knowledge of the smuggled nature of the gold and failed to establish lawful possession or indigenous origin. The High Court therefore sustained the conviction for possession and transport of smuggled gold and refused to interfere with the sentence, holding that deterrent punishment was warranted for deliberate evasion of customs controls.

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Issues: (i) Whether the revision petitioner's conviction for possessing and transporting gold of foreign origin, in the absence of a permit or licence, was sustainable. (ii) Whether the sentence of imprisonment called for interference.

Issue (i): Whether the revision petitioner's conviction for possessing and transporting gold of foreign origin, in the absence of a permit or licence, was sustainable.

Analysis: The evidence of the seizure officers, the mechanic who dismantled the scooter, and the attesting witness established that the gold bars were concealed in the petrol tank of the scooter and bore foreign markings. The revision petitioner's own statement showed awareness that the gold was smuggled and that he had earlier carried such gold. In the circumstances, the statutory presumption under Section 123 of the Customs Act, 1962 operated, and the petitioner failed to rebut it by showing indigenous origin or lawful possession.

Conclusion: The conviction was sustained and was against the revision petitioner.

Issue (ii): Whether the sentence of imprisonment called for interference.

Analysis: The Court declined to reduce the sentence, taking the view that offences involving smuggled gold and deliberate evasion of customs controls warranted deterrent punishment.

Conclusion: No interference was called for on sentence, and the petitioner was denied relief.

Final Conclusion: The revision failed on both conviction and sentence, and the concurrent findings and punishment imposed by the courts below were left undisturbed.

Ratio Decidendi: Where gold bearing foreign markings is seized under a reasonable belief of smuggling and the accused is shown to have knowledge of its illicit origin, the burden under Section 123 of the Customs Act, 1962 lies on the accused to rebut the presumption of smuggled character; failure to do so sustains conviction and confiscatory consequences.

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