Gold Bars Seizure: Marked Bars Confiscated, Unmarked Bars Released; Burden of Proof Shifts Under Customs Act.

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....10kg of gold consisting of 10 gold bars, with 7 bars bearing foreign markings and 3 bars without markings, was seized along with cash from an employee of the appellant. The appellant claimed the 3 unmarked bars were melted from old jewelry. Section 123 of the Customs Act was invoked, requiring the appellant to prove the 7 marked bars were not smuggled goods. The Tribunal held there was reasonable belief of smuggling for the 7 bars, but not for the 3 unmarked bars, shifting the burden of proof to the department for those. The department failed to prove the 3 bars were smuggled. Confiscation of the 7 marked bars was upheld as smuggled goods u/s 111(d), but confiscation of the 3 unmarked bars was set aside. Penalties u/ss 112 and 114AA were reduced proportionately. The appeal was partly allowed, and the department was directed to release the 3 unmarked bars.....