Retracted Section 108 statement without corroboration cannot by itself sustain personal penalty under customs law.

Foreign-origin gold found in the appellant's possession was treated as contraband because lawful ownership or possession was not proved and no rival claimant appeared, so confiscation under the Customs Act was upheld. A personal penalty under Section 112(b) could not be sustained on the basis of a retracted Section 108 statement where voluntariness was doubtful and independent corroboration was lacking; the penalty was set aside. The appeal therefore succeeded only in part, with confiscation maintained but the penalty annulled.

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Issues: (i) Whether the confiscation of the seized gold under the Customs Act, 1962 was sustainable; (ii) Whether the personal penalty under Section 112(b) of the Customs Act, 1962 could be sustained on the basis of the appellant's retracted Section 108 statement.

Issue (i): Whether the confiscation of the seized gold under the Customs Act, 1962 was sustainable.

Analysis: The seized gold was found to be of foreign origin and the appellant failed to establish lawful possession or title. The record showed no rival claimant, and the material on record supported seizure of contraband liable to confiscation.

Conclusion: Confiscation of the seized gold was upheld and this issue was decided against the appellant.

Issue (ii): Whether the personal penalty under Section 112(b) of the Customs Act, 1962 could be sustained on the basis of the appellant's retracted Section 108 statement.

Analysis: The appellant's statement was retracted and the circumstances in which it was recorded raised doubt about voluntariness. The statement was treated as weak evidence and was not sufficiently corroborated by independent material to justify personal penalty. The surrounding evidence did not satisfactorily establish the appellant's culpable possession for the purpose of penalty.

Conclusion: The personal penalty was unsustainable and was set aside in favour of the appellant.

Final Conclusion: The confiscation of the seized gold was maintained, but the personal penalty imposed on the appellant was annulled, resulting in only partial success for the appeal.

Ratio Decidendi: A retracted confession or statement under Section 108 of the Customs Act, 1962, without reliable independent corroboration and where voluntariness is doubtful, is insufficient by itself to sustain a personal penalty under Section 112(b).

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