Unlicensed gold dealings: business-premises stock is presumed confiscable unless the dealer rebuts the statutory presumption.

Gold kept in business premises used for unlicensed gold dealing is ordinarily presumed to be stock-in-trade meant for sale, and the dealer bears the burden of rebutting that presumption. Where unlicensed dealing under the Gold (Control) Act is admitted and the seized gold is not shown to be unrelated to the business, the gold becomes liable to confiscation under the Act. The commentary also notes that the extent of unauthorized transactions may support the view that absolute confiscation and penalty are not excessive, reinforcing the confiscatory and penal consequences of operating without a valid dealer's licence.

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Issues: Whether gold found in the business premises of a person carrying on gold without a valid dealer's licence was liable to confiscation under the Gold (Control) Act, and whether the penalty imposed was excessive.

Analysis: Section 27(1) of the Gold (Control) Act prohibits carrying on business as a gold dealer without a valid licence. Gold kept or displayed in a business premises is ordinarily presumed to be stock-in-trade meant for sale unless the contrary is shown, and the burden of proving that it is not so lies on the dealer. Section 71 of the Act makes gold in respect of which a provision of the Act is contravened liable to confiscation. Since the appellant admitted unlicensed gold dealings in the same premises and failed to displace the presumption that the seized gold formed part of the business stock, the confiscation followed. The volume of unlicensed transactions also negatived the plea that the absolute confiscation and penalty were harsh.

Conclusion: The seized gold was liable to confiscation and the penalty was upheld.

Final Conclusion: The appeal failed, and the confiscatory and penal order was sustained.

Ratio Decidendi: Gold found in business premises used for unlicensed gold dealing is presumed to be stock-in-trade, and in the absence of rebuttal it becomes liable to confiscation under the Act.

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