VALLABHDAS LILADHAR AND ORS. vs ASSISTANT COLLECTOR OF CUSTOMS

The Supreme Court held that statements made to customs authorities are admissible in criminal trials under Section 167(81) of the Sea Customs Act, 1878, provided they are not vitiated by inducement, threat, or promise as per Sections 24 and 25 of the Indian Evidence Act, 1872. The Court ruled that the confiscation and penalty imposed do not bar prosecution under the Act. The conviction of the appellants for dealing in smuggled gold was upheld, affirming that knowledge of the smuggled nature of goods implies intent to evade duty.