https://www.taxtmi.com/caselaws?id=797136 Section 123 of the Customs Act applies only where seizure rests on objectively established reasonable belief that goods were smuggled. Unmarked gold seized in a town area, without intrinsic foreign-origin indicators, is not shown to be smuggled merely by quantity or absence of documents at interception, particularly where GST-compliant invoices, stock records and tax filings support domestic procurement. Statements recorded under Section 108 require statutory safeguards, including examination and effective cross-examination, and need independent corroboration before supporting confiscation or penalties. Currency cannot be confiscated as sale proceeds without cogent evidence linking it to smuggling. On these principles, confiscation, penalties and retention of currency were unsustainable. en-us Fri, 14 Aug 2026 00:00:00 +0530 Tue, 18 Aug 2026 08:35:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797136 Section 123 of the Customs Act applies only where seizure rests on objectively established reasonable belief that goods were smuggled. Unmarked gold seized in a town area, without intrinsic foreign-origin indicators, is not shown to be smuggled merely by quantity or absence of documents at interception, particularly where GST-compliant invoices, stock records and tax filings support domestic procurement. Statements recorded under Section 108 require statutory safeguards, including examination and effective cross-examination, and need independent corroboration before supporting confiscation or penalties. Currency cannot be confiscated as sale proceeds without cogent evidence linking it to smuggling. On these principles, confiscation, penalties and retention of currency were unsustainable. Case-Laws Customs Fri, 14 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797136