Case Note & Summary
The case involves an appeal by the Union of India against the acquittal of Narendra Ratanchand Jain (respondent no.1) for offences under the Customs Act, 1962 and the Gold (Control) Act, 1968. The prosecution alleged that on 25 March 1985, officers of the Gold Control Wing received information about persons carrying foreign marked gold bars near a pan beedi shop at Abhinandan Market, Kalbadevi Road, Mumbai. Respondent no.1 was apprehended at the spot and upon search, five foreign marked gold bars of 10 tolas each, weighing 582.500 gms and valued at Rs.1,86,400/-, were allegedly recovered from his trouser pocket. He was taken to the Customs office where a panchnama was drawn and his statement was recorded under Section 108 of the Customs Act on 25 March 1989. However, on 26 March 1989, when produced before the Magistrate for remand, respondent no.1 retracted the statement, alleging that he was mercilessly beaten by Customs officers and the statement was dictated under duress. The trial court acquitted respondent no.1, finding that the prosecution failed to prove its case beyond reasonable doubt. The High Court, in appeal, examined the evidence including the retracted statement, the hostile panch witnesses, and the lack of independent corroboration. The court held that the retracted statement under Section 108 required corroboration, which was absent. The panch witnesses turned hostile and did not support the seizure. The court also noted that the prosecution did not examine independent witnesses from the public place where the alleged recovery occurred. Consequently, the High Court dismissed the appeal, upholding the acquittal and confirming that the trial court's findings were not perverse.
Headnote
A) Criminal Law - Customs Act - Section 108 Statement - Retracted Confession - The court considered whether a statement recorded under Section 108 of the Customs Act, 1962, which was subsequently retracted on the ground of coercion, could form the sole basis for conviction. The court held that such a retracted statement requires independent corroboration and cannot be relied upon without supporting evidence. (Paras 4-6) B) Criminal Law - Gold Control Act - Section 8(1) and Section 85(1)(ii) - Possession of Gold - The court examined whether the prosecution had proved possession of smuggled gold beyond reasonable doubt. The court held that the panch witnesses turned hostile and the seizure was not properly witnessed, leading to failure of proof. (Paras 7-10) C) Criminal Law - Appeal Against Acquittal - Scope of Interference - The court reiterated that in an appeal against acquittal, the appellate court should not interfere unless the findings are perverse or unreasonable. The trial court's acquittal was based on proper appreciation of evidence and hence upheld. (Paras 11-12)
Issue of Consideration
Whether the acquittal of respondent no.1 for offences under Section 135(1)(b) read with Section 135(1)(i) of the Customs Act, 1962 and under Section 8(1) of the Gold Control Act punishable under Section 85(1)(ii) of the Gold (Control) Act, 1968 was correct, given the retracted statement under Section 108 of the Customs Act and lack of independent witnesses.
Final Decision
Appeal dismissed. Acquittal of respondent no.1 upheld.
Law Points
- Section 108 Customs Act statement retracted on ground of coercion
- not corroborated by independent evidence
- not reliable
- acquittal under Section 135(1)(b) Customs Act and Section 85(1)(ii) Gold Control Act upheld
- burden on prosecution to prove guilt beyond reasonable doubt
- retracted confession requires corroboration.



