1998 (9) TMI 301 - AT - Customs

Summary

Issues:
1. Seizure of gold and currency under Customs Act and Gold (Control) Act.
2. Assay report and purity of gold.
3. Confessional statements and retraction.
4. Legal implications of retracted confessions.
5. Burden of proof under Customs Act.
6. Alleged contraventions under Gold (Control) Act.

Analysis:

1. The case involved the seizure of gold and currency from an individual under the Customs Act and Gold (Control) Act. The appellant faced allegations of contravention of various provisions, leading to confiscation of gold and imposition of penalties.

2. The assay report indicated the purity of the seized gold, with discussions on the accuracy of the carat method versus the touch method. The Gold (Control) Act prohibited primary gold of purity higher than 995.0 per mille, raising questions about the origin of the gold seized.

3. Confessional statements made by the appellant regarding the gold being melted from smuggled gold were retracted, citing alleged torture during interrogation. The admissibility and legal implications of retracted confessions were debated, referencing relevant case law.

4. Legal principles surrounding retracted confessions were extensively discussed, highlighting the burden of proof shifting from prosecution to the accused and the importance of corroborative evidence to establish the veracity of statements.

5. The burden of proof under Section 123 of the Customs Act was examined, emphasizing the requirement for a reasonable belief supported by definite material to establish the seized goods as smuggled. Lack of corroborative evidence and retraction of statements raised doubts about the smuggled origin of the gold.

6. Alleged contraventions under the Gold (Control) Act, including possession and dealing with primary gold without a license, were contested. The defense argued compliance with legal provisions, prompting a remand for re-adjudication of the contraventions under the Gold (Control) Act.

In conclusion, the judgment set aside the orders related to confiscation and penalties under the Customs Act, remanding the case for further consideration of the alleged contraventions under the Gold (Control) Act. The detailed analysis of the issues highlighted legal complexities surrounding the seizure, assay, confessions, burden of proof, and contraventions under the applicable laws.