SHAH GUMMAN MAL vs THE STATE OF ANDHRA PRADESH

The Supreme Court upheld the conviction under Section 135(1)(b)(ii) of the Customs Act, 1962, stating that the prosecution proved the appellant's possession of gold biscuits with foreign markings, which he failed to explain. The Court ruled that the appellant's failure to disclose the identity of the person who provided the gold allowed for a presumption of knowledge regarding its smuggled status under Sections 106 and 114 of the Evidence Act, 1872. The sentence of nine months rigorous imprisonment was deemed appropriate and not subject to reduction.