Reverse burden for re-melted gold requires objective reasonable belief, while uncorroborated retracted statements cannot establish smuggling or support confiscation.

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....Reverse burden for re-melted gold arises only when seizure rests on an honest, bona fide reasonable belief, supported by objective material, that the particular gold was smuggled; gold's fineness or purity alone does not establish foreign origin. Domestic purchase invoices, supplier confirmation and banking-channel payment may discharge that burden on a preponderance of probabilities unless rebutted through investigation. Promptly retracted Customs Act statements require independent corroboration, and reliance on material witness statements without effective cross-examination prejudices natural justice. Confiscation requires proof of contravention, while penalty requires knowledge or reason to believe goods were confiscation-liable; absent proof of smuggling, confiscation of gold, vehicle and packing material and related penalties were set aside.....