Burden of proof in certain cases [Section 123]:

Where any goods to which this section applies* are seized under this Act in the reasonable belief that they are smuggled goods, the burden of proving that they are not smuggled goods shall be

(a) in a case where such seizure is made from the possession of any person

(i) on the person from whose possession the goods were seized; and

(ii) if any person, other than the person from whose possession the goods were seized, claims to be the owner thereof, also on such other person;

(b) in any other case

on the person, if any, who claims to be the owner.

*This section applies to gold, and manufactures thereof, watches, and any other class of goods which the Central Government may by notification in the Official Gazette specify. Central Government has specified the following classes of goods under this section: – (a) Synthetic yarn and metallised yarn (b) Fabrics made wholly or mainly of synthetic yarn (c) Electronic calculators (d) Watches, watch movements (including partly assembled movements), dials and cases for watches (e) Zip fasteners (f) Silver bullion

Under this section, the burden of proof is on the accused and not on the Department. It implies that where the goods notified under section 123 are seized under reasonable belief that these are smuggled goods, the owner has to prove that the same are not smuggled goods.