The main legal point established in the judgment is the requirement for independent corroboration of statements recorded under Section 108 of the Customs Act 1962 and the principles guiding the powers of the Appellate Court in appeals against orders of acquittal.

JUDGMENT :

K R SHRIRAM, J.

1. At the outset, I have to note that yesterday, i.e., 6th January 2020, when the matter was called out, the counsel for respondents was not present and therefore, this Court requested Mr. Shanay Shah, an Advocate practicing in this Court, to be the Amicus Curiae. Mr. Shah agreed and the contribution of Mr. Shah, I have to note, has been immense. Today respondents were represented by Mr. Matkar.

2. This is a case where the customs authorities are impugning an order of acquittal dated 17th January 2001 passed by the Additional Chief Metropolitan Magistrate, 47th Court, Esplanade, Mumbai, acquitting respondents of offence under various provisions of Customs Act 1962 and Imports and Exports (Control) Act 1947.

3. The case of the prosecution in brief is that on 4th February 1991, on the basis of specific information received by the Officers of Directorate of Revenue Intelligence, Bombay Zonal Unit, to the effect that respondent no.1 was dealing in Foreign marked gold biscuits in large scale and respondent no.1 receives contraband gold, its sale proceeds in the form of foreign and Indian currencies and stores the same in a room situated on the 3rd Floor of 12-V.C. Co-operative Housing Society, 36-A, Champa Galli Cross Lane, Mumbai 20 (the said premises), the Officers of DRI and the Officers of appellants effected a raid and search of the said premises and respondents were found in the said premises. After thorough search of the said premises in presence of the panchas, the officials recovered 24 marked gold biscuits each weighing 10 tolas, large quantities of foreign currencies of various denominations of different countries equivalent to Indian Rs.5,88,750/- and Indian currency in the sum of Rs.5,06,000/-. Both respondents failed to give satisfactory explanation for the possession of those 24 marked gold biscuits and Indian and Foreign currency and also failed to produce any documents regarding lawful possession of the same. After following due procedure, the gold bars and currencies were taken charge of by the department under seizure panchnama. Respondent nos.1 and 2 were brought to the office of DRI for further interrogation and investigation. Thereafter, further investigation was carried out by appellants after issuing summons under Section 108 of the Customs Act, 1962. Statements of respondent nos.1 and 2 were recorded and those statements are at Exhibit P-4 and P-11, respectively. After completion of investigation and after compliance of the provisions of law, complaint against respondents was filed.

4. The Trial Court framed charges and read out the same to the accused. Both of them denied the charge. According to respondents, they were poor villagers who had come to Mumbai in search of job and they were looking for job. Somebody gave them the address of the said premises and respondents went to the said premises looking for work. They found three persons in the room and while they were making inquiries from those people about work, a number of persons rushed into the room and disclosed their identity to be DRI Officers. Despite respondents telling them that they were there only few minutes before in search of work and that they may be allowed to go, the DRI Officers told them that they cannot leave and they were under arrest. After some time, the DRI Officers took them alongwith the three other persons in the room to their office where they all were questioned about their background. Later, the DRI Officers came and they were threatened with physical hurt and their signatures have been obtained by force.

5. To drive home the charge, appellant examined two witnesses, one A.P. Patil as PW-1 and the other D.K. Savekar as PW-2. Both of them were part of the raiding party. In the chargesheet, eight witnesses have been cited and name of six have been provided. Despite that only two of them have deposed. Of the remaining four witnesses, two of them are panch witnesses, in whose presence the gold and the India