Lawful acquisition of bullion must be documented; absent valid papers, confiscation and penalties may follow without proof of attempted export.

Silver bullion found in a specified area without a transport voucher, bill or invoice was treated as lacking proof of lawful acquisition, making the violation substantive rather than technical. On that basis, confiscation under Chapter IV-B of the Customs Act was upheld without requiring proof of an actual attempt to export, and the redemption fine was left undisturbed. The same unlawful possession and handling of the bullion were also treated as sufficient to support penal liability. The objections that one appellant was absent at the search and that another was not a working partner did not displace responsibility arising from control of the shop premises during the relevant period, so the penalties were sustained.

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Issues: (i) whether silver bullion found in a specified area without transport voucher, bill or invoice was liable to confiscation under Chapter IV-B of the Customs Act; (ii) whether the penalties imposed on the appellants were sustainable.

Issue (i): whether silver bullion found in a specified area without transport voucher, bill or invoice was liable to confiscation under Chapter IV-B of the Customs Act.

Analysis: The bullion was recovered from a jewellery shop in a specified area without any transport voucher required under section 11K and without any bill or invoice showing lawful acquisition. The claimed source from unnamed customers was unsupported, and the absence of documents showed that the goods had not entered the area through a normal trade channel. In these circumstances, the violation was held to be substantive and not a mere technical breach, and it was not necessary to prove an actual attempt to export once lawful acquisition was not shown.

Conclusion: The confiscation was upheld, and the redemption fine was not interfered with.

Issue (ii): whether the penalties imposed on the appellants were sustainable.

Analysis: The finding of unlawful possession and movement of the silver bullion in the specified area was treated as sufficient to sustain penal liability. The absence of the appellant at the time of search and the plea that one appellant was not a working partner did not displace the responsibility arising from the admitted control and handling of the shop premises during the material period.

Conclusion: The penalties were upheld.

Final Conclusion: The order of confiscation, redemption fine, and penalties was affirmed, and both appeals failed.

Ratio Decidendi: Where silver bullion is found in a specified area without legally valid documents showing licit acquisition, confiscation under Chapter IV-B of the Customs Act can be sustained without proof of an actual attempt to export, and penal consequences may follow from the unlawful possession and handling of the goods.

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