Customs Officers seized gold bars believing they were liable for...

Customs Officers seized gold bars believing they were liable for confiscation under reasonable belief of smuggling. However, the gold was covered under proper documents, so there was no reasonable belief of smuggling on seizure date. Section 123 presumption was not invokable as reasonableness must be judged by circumstances at seizure time. Department failed to conclusively prove gold was smuggled, foreign origin, and re-melted with false markings. When Section 123 is not invokable and appellants disclosed legitimate purchase source, Department must prove smuggling and liability. Mere presumptions are insufficient. Confiscation and penalty on appellants not legally tenable. Commissioner (Appeals) order upholding absolute confiscation set aside by Appellate Tribunal. Appeal allowed.