PUKHRAJ vs D. R. KOHLI

The Supreme Court upheld the confiscation of gold under Section 167(8) of the Sea Customs Act, 1878, affirming that the presumption of smuggling under Section 178A was validly applied. The Court ruled that the burden of proof lay on the appellant to demonstrate that the gold was not smuggled, given the reasonable belief established by the authorities based on the quantity of gold, prior information about the appellant, and his lack of a train ticket. The Court concluded that the confiscation was lawful as the gold was imported in violation of the Foreign Exchange Regulation Act, 1947, and the relevant notifications issued thereunder.