LAW FOR ALL

Code of Civil Procedure-Anti Corruption Bureau seized smuggled gold from the house of the accused-police-If had no jurisdiction to take cognizance. Customs Act, 1962-5. 135-Scope of-Burden of proof that gold seized is no smuggled gold-on whom rests. Words and phrases-"Acquired possession" or "Keeping"- Meaning of. HEADNOTE: The Anti-Corruption Bureau of the Police raided the house of the respondent and recovered gold biscuits with foreign markings stitched in a jacket lying in a steel trunk underneath some clothes. At the time of the raid, the respondent was not in the house but his wife and mother were present. At about the same time the Customs Authorities also raided his house and took proceedings under the Customs Act, 1962 in respect of the smuggled gold found in the house. The respondent, who remained absconding. surrendered to the police a week thereafter.- HELD: 1. The police had powers under the Code of Criminal procedure to search and seize the gold if they had reason to believe that a cognizable offence had been committed. Assuming that the search was illegal it would 341 not affect either the validity of the seizure and further investigation by the Customs Authorities or the validity of the trial which followed on the complaint of the Assistant Collector of Customs .(a) The High Court was in error in acquitting the appellant of the charges under clauses (a) and (b) of section 135(1) of the Customs Act, 1962. [350 G] (b) Even if the prosecution could not invoke the provisions of section 123 of the Customs Act there was sufficient circumstantial evidence to establish that the gold was smuggled gold. [346 H] (c) In order to substantiate a charge under clause (b) of section 135(1), the prosecution has to prove (i) that the accused had acquired possession or was in any way concerned in keeping or concealing the gold bars (ii) that he knew or had reason to believe that these gold bars were smuggled goods and thus liable to confiscation under section 111 of the Customs Act (d) Even in cases where section 123(1) of the Customs Act is not attracted the prosecution can discharge its burden by establishing circumstances from which a prudent man acting prudently may infer that in all probability the goods in question were smuggled goods and the accused had the requisite guilty knowledge in respect thereof. In the instant case while acquitting the accused the High Court overlooked several tell-tale circumstances appearing in evidence which establish that the gold was smuggled gold namely (a) the gold biscuits bore foreign markings which proclaimed their foreign origin; (b) they were of 24 carat purity which was not available in India at the material time; (c) the gold biscuits were found concealed stitched in the folds of a jacket specially prepared for this purpose; (d) the gold biscuits were of huge value and (e) after the seizure of the gold the accused absconded and continued to be a fugitive from justice till a week thereafter. All these circumstances show that the gold had been smuggled into the country from a foreign country in contravention of the Foreign Exchange Regulations Act, 1947.