THE CUSTOMS ACT, 1962* 
____________ 

ARRANGEMENT OF SECTIONS 
____________ 

CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 
OFFICERS OF CUSTOMS 

3.  Classes of officers of customs. 
4.  Appointment of officers of customs. 
5.  Powers of officers of customs. 
6.  Entrustment of functions of Board and customs officers on certain other officers. 

CHAPTER III 
APPOINTMENT OF CUSTOMS PORTS, AIRPORTS, ETC. 

7.  Appointment of customs ports, airports, etc. 
8.  Power to approve landing places and specify limits of customs area. 
9.  [Omitted.]. 
10.  Appointment of boarding stations. 

CHAPTER IV 
PROHIBITIONS ON IMPORTATION AND EXPORTATION OF GOODS 

11.  Power to prohibit importation or exportation of goods. 

CHAPTER IVA 
DETECTION OF ILLEGALLY IMPORTED GOODS AND PREVENTION OF THE DISPOSAL THEREOF 

11A. Definitions. 
11B. Power of Central Government to notify goods. 
11C. Persons possessing notified goods to intimate the place of storage, etc. 
11D. Precautions to be taken by persons acquiring notified goods. 
11E. Persons possessing notified goods to maintain accounts. 
11F. Sale, etc., of notified goods to be evidenced by vouchers. 
11G. Sections 11C, 11E and 11F not to apply to goods in personal use. 

* Subject to verification and confirmation by the administrative ministry. 

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CHAPTER IVB 
PREVENTION OR DETECTION OF ILLEGAL EXPORT OF GOODS 

SECTIONS 

11H. Definitions. 
11-I. Power of Central Government to specify goods. 
11J. Persons possessing specified goods to intimate the place of storage, etc. 
11K. Transport of specified goods to be covered by vouchers. 
11L. Persons possessing specified goods to maintain accounts. 
11M. Steps to be taken by persons selling or transferring any specified goods. 

CHAPTER IVC 
POWER TO EXEMPT FROM THE PROVISIONS OF CHAPTERS IVA AND IVB 

11N. Power to exempt. 

CHAPTER V 
LEVY OF, AND EXEMPTION FROM, CUSTOMS DUTIES 

12.  Dutiable goods. 
13.  Duty on pilfered goods. 
14.  Valuation of goods. 
15.  Date for determination of rate of duty and tariff valuation of imported goods. 
16.  Date for determination of rate of duty and tariff valuation of export goods. 
17.  Assessment of duty. 
18.  Provisional assessment of duty. 
19.  Determination of duty where goods consist of articles liable to different rates of duty. 
20. Re-importation of goods. 
21. Goods derelict, wreck, etc. 
  22. Abatement of duty on damaged or deteriorated goods. 
  23. Remission of duty on lost, destroyed or abandoned goods. 
  24. Power to make rules for denaturing or mutilation of goods. 
25. Power to grant exemption from duty. 
25A. Inward processing of goods. 
25B. Outward processing of goods. 
26.  Refund of export duty in certain cases. 
26A. Refund of import duty in certain cases. 
27. Claim for refund of duty. 
 27A. Interest on delayed refunds. 
28.  Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded. 
28A. Power not to recover duties not levied or short-levied as a result of general practice. 
28AA. Interest on delayed payment of duty. 
28AAA. Recovery of duties in certain cases. 
28B. Duties collected from the buyer to be deposited with the Central Government. 
28BA. Provisional attachment to protect revenue in certain cases. 

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CHAPTER VA 
INDICATING AMOUNT OF DUTY IN THE PRICE OF GOODS, ETC., FOR PURPOSE OF REFUND 

SECTIONS 

28C. Price of goods to indicate the amount of duty paid thereon. 
28D. Presumption that incidence of duty has been passed on to the buyer. 
28DA. Procedure regarding claim of preferential rate of duty. 

CHAPTER VAA 
ADMINISTRATION OF RULES OF ORIGIN UNDER TRADE AGREEMENT 

28DA. Procedure regarding claim of preferential rate of duty. 

CHAPTER VB 
ADVANCE RULINGS 

28E. Definitions. 
28EA. Customs Authority for Advance Rulings. 
28F. Authority for advance rulings. 
28G. [Omitted.]. 
28H. Application for advance ruling. 
28-I. Procedure on receipt of application. 
28J. Applicability of advance ruling. 
28K. Advance ruling to be void in certain circumstances. 
28KA. Appeal. 
28L. Powers of Authority. 
28M. Procedure for Authority. 

CHAPTER VI 
PROVISIONS RELATING TO CONVEYANCES CARRYING IMPORTED OR EXPORTED GOODS 

29.  Arrival of vessels and aircrafts in India. 
30.  Delivery of arrival manifest or import manifest or import report. 
30A.Passenger and crew arrival manifest and passenger name record information. 
31.  Imported goods not to be unloaded from vessel until entry inwards granted. 
32.  Imported goods not to be unloaded unless mentioned in arrival manifest or import manifest or 

import report. 

33.  Unloading and loading of goods at approved places only. 
34.  Goods not to be unloaded or loaded except under supervision of customs officer. 
35.  Restrictions on goods being water-borne. 
36.  Restrictions on unloading and loading of goods on holidays, etc. 
37.  Power to board conveyances. 
38.  Power to require production of documents and ask questions. 
39.  Export goods not to be loaded on vessel until entry-outwards granted. 
40.  Export goods not to be loaded unless duly passed by proper officer. 
41.  Delivery of departure manifest or export manifest or export report. 
41A. Passenger and crew departure manifest and passenger name record information. 
42.  No conveyance to leave without written order. 
43.  Exemption of certain classes of conveyances from certain provisions of this Chapter. 

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CHAPTER VII 
CLEARANCE OF IMPORTED GOODS AND EXPORT GOODS 

SECTIONS 

44.  Chapter not to apply to baggage and postal articles. 

Clearance of imported goods 

45.  Restrictions on custody and removal of imported goods. 
46.  Entry of goods on importation. 
47.  Clearance of goods for home consumption. 
48.  Procedure in case of goods not cleared, warehoused, or transhipped within thirty days after 

unloading. 

49.  Storage of imported goods in warehouse pending clearance. 

Clearance of export goods 

50.  Entry of goods for exportation. 
51.  Clearance of goods for exportation. 

CHAPTER VIIA 
PAYMENTS THROUGH ELECTRONIC CASH LEDGER [AND ELECTRONIC DUTY CREDIT LEDGER] 

51A. Payment of duty, interest, penalty, etc. 

51B. Ledger for duty credit. 

CHAPTER VIII 
GOODS IN TRANSIT 

52.  Chapter not to apply to baggage, postal articles and stores. 
53.  Transit of certain goods without payment of duty. 
54.  Transhipment of certain goods without payment of duty. 
55.  Liability of duty on goods transited under section 53 or transhipped under section 54. 
56.  Transport of certain classes of goods subject to prescribed conditions. 

CHAPTER IX 
WAREHOUSING 

57.  Licensing of public warehouses. 
58.  Licensing of private warehouses. 
58A. Licensing of special warehouses. 
58B. Cancellation of licence. 
59.  Warehousing bond. 
59A. [Omitted.]. 
60.  Permission for removal of goods for deposit in warehouse. 
61.  Period for which goods may remain warehoused. 
62.  [Omitted.]. 
63.  [Omitted.]. 
64.  Owner’s right to deal with warehoused goods. 
65.  Manufacture and other operations in relation to goods in a warehouse. 
66.  Power to exempt imported materials used in the manufacture of goods in warehouse. 

4 

 
 
 
 
SECTIONS 

67.  Removal of goods from one warehouse to another. 
68.  Clearance of warehoused goods for home consumption. 
69.  Clearance of warehoused goods for export. 
70.  Allowance in case of volatile goods. 
71.  Goods not to be taken out of warehouse except as provided by this Act. 
72.  Goods improperly removed from warehouse, etc. 
73.  Cancellation and return of warehousing bond. 
73A.Custody and removal of warehoused goods. 

CHAPTER X 
DRAWBACK 

74.  Drawback allowable on re-export of duty-paid goods. 
75.  Drawback on imported materials used in the manufacture of goods which are exported. 
75A. Interest on drawback. 
76.  Prohibition and regulation of drawback in certain cases. 

76A . [Omitted.]. 

76B. [Omitted.]. 

76C. [Omitted.]. 

76D. [Omitted.]. 

76E. [Omitted.]. 

76F. [Omitted.]. 

76G. [Omitted.]. 

76H. [Omitted.]. 

76-I. [Omitted.]. 

76J. [Omitted.]. 

76K. [Omitted.]. 

76L. [Omitted.]. 

76M. [Omitted.]. 

76N. [Omitted.]. 

CHAPTER XI 
SPECIAL PROVISIONS REGARDING BAGGAGE, GOODS IMPORTED OR EXPORTED BY POST, COURIER AND 
STORES 
Baggage 

77.  Declaration by owner of baggage. 
78.  Determination of rate of duty and tariff valuation in respect of beggage. 
79.  Bona fide baggage exempted from duty. 
80.  Temporary detention of baggage. 
81.  Regulations in respect of baggage. 

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SECTIONS 

Goods imported or exported by post 

82.  [Omitted.]. 
83.  Rate of duty and tariff valuation in respect of goods imported or exported by post or courier. 
84.  Regulations regarding goods imported or to be exported by post or courier. 

Stores 

85.  Stores may be allowed to be warehoused without assessment to duty. 
86.  Transit and transhipment of stores. 
87.  Imported stores may be consumed on board a foreign-going vessel or aircraft. 
88.  Application of section 69 and Chapter X to stores. 
89.  Stores to be free of export duty. 
90.  Concessions in respect of imported stores for the Navy. 

CHAPTER XII 
PROVISIONS RELATING TO COASTAL GOODS AND VESSELS CARRYING COASTAL GOODS 

91.  Chapter not to apply to baggage and stores. 
92.  Entry of coastal goods. 
93.  Coastal goods not to be loaded until bill relating thereto is passed, etc. 
94.  Clearance of coastal goods at destination. 
95.  Master of a coasting vessel to carry an advice book. 
96.  Loading and unloading of coastal goods at customs port or coastal port only. 
97.  No coasting vessel to leave without written order. 
98.  Application of certain provisions of this Act to coastal goods, etc. 
98A. Power to relax. 
99.  Power to make rules in respect of coastal goods and coasting vessels. 

99A. Audit. 

CHAPTER XIIA 
AUDIT 

CHAPTER XIIB 

99B. Verification of identity and compliance thereof. 

VERIFICATION OF IDENTITY AND COMPLIANCE 

CHAPTER XIII 
SEARCHES, SEIZURE AND ARREST 

100. Power to search suspected persons entering or leaving India, etc. 
101. Power to search suspected persons in certain other cases. 
102. Persons to be searched may require to be taken before gazetted officer of customs or magistrate. 
103. Power to screen or X-ray bodies of suspected persons for detecting secreted goods. 
104. Power to arrest. 
105. Power to search premises. 
106. Power to stop and search conveyances. 
106A. Power to inspect. 
107. Power to examine persons. 
108. Power to summon persons to give evidence and produce documents. 
108A. Obligation to furnish information. 
108B. Penalty for failure to furnish information return. 
109. Power to require production of order permitting clearance of goods imported by land. 
109A. Power to undertake controlled delivery. 

6 

 
 
SECTIONS 
110. Seizure of goods, documents and things. 
110A. Provisional release of goods, documents and things seized or bank account provisionally 
attached pending adjudication. 
110AA. Action subsequent to inquiry, investigation or audit or any other specified purpose. 

CHAPTER XIV 
CONFISCATION OF GOODS AND CONVEYANCES AND IMPOSITION OF PENALTIES 

111. Confiscation of improperly imported goods, etc. 
112. Penalty for improper importation of goods, etc. 
113. Confiscation of goods attempted to be improperly exported, etc. 
114. Penalty for attempt to export goods improperly, etc. 
114A. Penalty for short-levy or non-levy of duty in certain cases. 
114AA. Penalty for use of false and incorrect material. 
114AB. Penalty for obtaining instrument by fraud, etc. 
115. Confiscation of conveyances. 
116. Penalty for not accounting for goods. 
117. Penalties for contravention, etc., not expressly mentioned. 
118. Confiscation of packages and their contents. 
119. Confiscation of goods used for concealing smuggled goods. 
120. Confiscation of smuggled goods notwithstanding any change in form, etc. 
121. Confiscation of sale-proceeds of smuggled goods. 
122. Adjudication of confiscations and penalties. 
122A. Adjudication Procedure. 
123. Burden of proof in certain cases. 
124. Issue of show cause notice before confiscation of goods, etc. 
125. Option to pay fine in lieu of confiscation. 
126. On confiscation, property to vest in Central Government. 
127. Award of confiscation or penalty by customs officers not to interfere with other punishments. 

CHAPTER XIVA 
SETTLEMENT OF CASES 

127A. Definitions. 
127B. Application for settlement of cases. 
127C. Procedure on receipt of an application under section 127B. 
127D. Power of Settlement Commission to order provisional attachment to protect revenue. 
127E. [Omitted.]. 
127F. Power and procedure of Settlement Commission. 
127G. Inspection, etc., of reports. 
127H. Power of Settlement Commission to grant immunity from prosecution and penalty. 
127-I. Power of Settlement Commission to send a case back to the proper officer. 
127J. Order of Settlement to be conclusive. 
127K. Recovery of sums due under order of settlement. 
127L. Bar on subsequent application for settlement in certain cases. 
127M. Proceedings before Settlement Commission to be judicial proceedings. 
127MA. [Omitted.]. 
127N. Applications of certain provisions of Central Excise Act. 

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SECTIONS 

CHAPTER XV 
APPEALS  

128. Appeals to Commissioner (Appeals). 
128A. Procedure in appeal. 
129. Appellate Tribunal. 
129A. Appeals to the Appellate Tribunal. 
129B. Orders of Appellate Tribunal. 
129C. Procedure of Appellate Tribunal. 
129D. Powers of Committee of Principal Chief Commissioner of Customs or Chief Commissioner of                                                                 
Customs or Principal Commissioner of Customs or Commissioner of Customs to pass certain orders. 
129DA. Powers of revision of Board or Collector of Customs in certain cases. 
129DD. Revision by Central Government. 
129E. Deposit of certain percentage of duty demanded or penalty imposed before filing appeal. 
129EE. Interest on delayed refund of amount deposited under section 129E. 
130. Appeal to High Court. 
130A. Application to High Court. 
130B. Power of High Court or Supreme Court to require statement to be amended. 
130C. Case before High Court to be heard by not less than two judges. 
130D. Decision of High Court or Supreme Court on the case stated. 
130E. Appeal to Supreme Court. 
130F. Hearing before Supreme Court. 
  131. Sums due to be paid notwithstanding reference, etc. 
  131A. Exclusion of time taken for copy. 
  131B. Transfer of certain pending proceedings and transitional provisions. 
  131BA. Appeal not to be filed in certain cases. 
  131C. Definitions. 

CHAPTER XVI 
OFFENCES AND PROSECUTIONS 

132. False declaration, false documents, etc. 
133. Obstruction of officer of customs. 
134. Refusal to be X-rayed. 
135. Evasion of duty or prohibitions. 
135A. Preparation. 
135AA. Protection of data. 
135B. Power of court to publish name, place of business, etc., of persons convicted under the Act. 
136. Offences by officers of customs. 
137. Cognizance of offences. 
138. Offences to be tried summarily. 
138A. Presumption of culpable mental state. 
138B. Relevancy of statements under certain circumstances. 
138C. Admissibility of micro films, facsimile copies of documents and computer print outs as 
documents and as evidence. 
139. Presumption as to documents in certain cases. 

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SECTIONS 

140. Offences by companies. 
140A. Application of section 562 of the Code of Criminal Procedure, 1898, and of the Probation of 
Offenders Act, 1958. 

CHAPTER XVII 
MISCELLANEOUS 

141. Conveyances and goods in a customs area subject to control of officers of customs. 
142. Recovery of sums due to Government. 
142A. Liability under Act to be first charge. 
143. Power to allow import or export on execution of bonds in certain cases. 
143A. [Omitted.]. 
143AA. Power to simplify or provide different procedure, etc., to facilitate trade. 
144. Power to take samples. 
145. Owner, etc., to perform operations incidental to compliance with customs law. 
146. Licence for Customs brokers. 
146A. Appearance by authorised representative. 
147. Liability of principal and agent. 
148. Liability of agent appointed by the person in charge of a conveyance. 
149. Amendment of documents. 
150. Procedure for sale of goods and application of sale proceeds. 
151. Certain officers required to assist officers of customs. 
151A. Instructions to officers of customs. 
151B. Reciprocal arrangement for exchange of information facilitating trade. 
152. Delegation of powers. 
153. Modes for service of notice, order, etc. 
154. Correction of clerical errors, etc. 
154A. Rounding off of duty, etc. 
154B. Publication of information respecting persons in certain cases. 
155. Protection of action taken under the Act. 
156. General power to make rules. 
157. General power to make regulations. 
158. Provisions with respect to rules and regulations. 
159. Rules, certain notifications and orders to be laid before Parliament. 
159A. Effect of amendments, etc., of rules, regulations, notifications or orders. 
160. Repeal and savings. 
161. Removal of difficulties. 
       THE SCHEDULE 

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THE CUSTOMS ACT, 1962* 
ACT NO. 52 OF 19621 

An Act to consolidate and amend the law relating to Customs. 

BE it enacted by Parliament in the Thirteenth Year of the Republic of India as follows:— 

[13th December, 1962] 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the Customs Act, 1962. 

(2) It extends to the whole of India 2[and, save as otherwise provided in this Act, it applies also to any 

offence or contravention thereunder committed outside India by any person]. 

(3) It shall come into force on such date3 as the Central Government may, by notification in the Official 

Gazette, appoint. 

2.  Definitions.—In this Act, unless the context otherwise requires,— 

4[(1) “adjudicating authority” means any authority competent to pass any order or decision under 

this Act, but does not include the Board, 5[Commissioner (Appeals)] or Appellate Tribunal; 

(1A) “aircraft” has the same meaning as in the Aircraft Act, 1934 (22 of 1934); 

(1B)  “Appellate  Tribunal”  means  the  Customs,  Excise  and 6[Service  Tax]  Appellate  Tribunal 

constituted under section 129;] 

7[(2) “assessment” means determination of the dutiability of any goods and the amount of duty, tax, cess 
or  any  other  sum  so  payable,  if  any,  under  this  Act  or  under  the  Customs  Tariff  Act,  1975  
(51 of 1975) (hereinafter referred to as the Customs Tariff Act) or under any other law for the time being in 
force, with reference to— 

(a) the tariff classification of such goods as determined in accordance with the provisions of 

the Customs Tariff Act; 

(b) the value of such goods as determined in accordance with the provisions of this Act and the 

Customs Tariff Act; 

(c) exemption or concession of duty, tax, cess or any other sum, consequent upon any notification 
issued therefor under this Act or under the Customs Tariff Act or under any other law for the time being 
in force; 

(d) the quantity, weight, volume, measurement or other specifics where such duty, tax, cess or any 
other sum is leviable on the basis of the quantity, weight, volume, measurement or other specifics of 
such goods; 

1. The Act shall come into force in the State of Sikkim (w.e.f. 1-10-1979), vide Notification No. G.S.R. 527(E), dated 1-9-1979 

Gazette of India, Extraordinary, Part II, sec. 3(i). 
2. Ins. by Act 13 of 2018, s. 57 (w.e.f. 28-3-2018). 
3. 1st February, 1963, vide notification No. G.S.R. 155, dated 23rd January, 1963, see Gazette of India, Extraordinary, Part II, sec. 

3(i). 

4. Subs. by Act 44 of 1980, s. 50 and Fifth Schedule, Part I, for clause (1) ( w.e.f. 11-10-1982). 
5. Subs. by Act 22 of 1995, s.  51, for “Collector (Appeals)” (w.e.f. 26-5-1995). 
6. Subs. by Act 32 of 2003, s. 104, for “Gold (Control)” (w.e.f. 14-5-2003). 
7. Subs. by Act 13 of 2018, s. 58, for clause (2) (w.e.f. 28-3-2018). 
* Subject to verification and confirmation by the administrative ministry. 

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(e) the origin of such goods determined in accordance with the provisions of the Customs Tariff 
Act or the rules made thereunder, if the amount of duty, tax, cess or any other sum is affected by 
the origin of such goods; 

(f) any other specific factor which affects the duty, tax, cess or any other sum payable on such 

goods, 

and includes provisional assessment, self-assessment, re-assessment and any assessment in which the duty 
assessed is nil;] 

 (3) “baggage” includes unaccompanied baggage but does not include motor vehicles; 

1[(3A) “beneficial owner” means any person on whose behalf the goods are being imported or exported 

or who exercises effective control over the goods being imported or exported;] 

(4) “bill of entry” means a bill of entry referred to in section 46; 

(5) “bill of export” means a bill of export referred to in section 50; 

(6) “Board” means the 2[ 3[Central Board of Indirect Taxes and Customs] constituted under the Central 

Boards of Revenue Act, 1963 (54 of 1963)]; 

(7) “coastal goods” means goods, other than imported goods, transported in a vessel from one port in 

India to another; 

4[(7A)  “Commissioner  (Appeals)”  means  a  person  appointed  to  be  a  Commissioner  of  Customs 

(Appeals) under sub-section (1) of section 4; 

5[(7B) “common portal” means the Common Customs Electronic Portal referred to in section 154C;] 

 (8) 6[Principal Commissioner of Customs or Commissioner of Customs], except for the purposes of 

Chapter XV, includes an Additional Commissioner of Customs;] 

(9) “conveyance” includes a vessel, an aircraft and a vehicle; 

(10)  “customs  airport”  means  any  airport  appointed  under  clause  (a)  of  section  7  to  be  a  customs 

airport 7[and includes a place appointed under clause (aa) of that section to be an air freight station]; 

(11) “customs area” means the area of a customs station 8[or a warehouse] and includes any area in 

which imported goods or exported goods are ordinarily kept before clearance by Customs Authorities; 

(12)  “customs  port”  means  any  port  appointed  under  clause  (a)  of  section  7  to  be  a  customs  port  

9[, and includes a place appointed under clause (aa) of that section to be an inland container depot]; 

1. Ins. by Act 7 of 2017, s. 89 (w.e.f. 31-3-2017). 
2. Subs. by Act 54 of 1963, s. 5, for certain words and figures (w.e.f. 1-1-1964). 
3. Subs. by Act 13 of 2018, s. 58, for “Central Board of Excise and Customs” (w.e.f. 28-3-2018). 
4. Subs. by Act 22 of 1995, s. 51, for clauses (7A) and (8) (w.e.f. 26-5-1995).  
5. Ins. by Act 13 of 2021, s. 89 (w.e.f. 28-3-2021). 
6. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
7. Ins. by Act 23 of 2012, s. 120 (w.e.f. 28-5-2012). 
8. Ins. by Act 18 of 2017, s. 2 (w.e.f. 4-5-2017). 
9. Ins. by Act 11 of 1983, s. 46 (w.e.f. 13-5-1983). 

11 

 
                                                           
(13)  “customs  station”  means  any  customs  port, 1[customs  airport,  international  courier  terminal, 

foreign post office] or land customs station; 

(14) “dutiable goods” means any goods which are chargeable to duty and on which duty has not been 

paid; 

(15) “duty” means a duty of customs leviable under this Act; 

(16) “entry” in relation to goods means an entry made in a bill of entry, shipping bill or bill of export 

and includes 2*** the entry made under the regulations made under section 84; 

(17) “examination”, in relation to any goods, includes measurement and weighment thereof; 

(18) “export”, with its grammatical variations and cognate expressions, means taking out of India to a 

place outside India; 

(19) “export goods” means any goods which are to be taken out of India to a place outside India; 

(20) “exporter”, in relation to any goods at any time between their entry for export and the time when 
they  are  exported, includes 3[any  owner,  beneficial  owner]  or  any  person  holding  himself  out  to  be the 
exporter; 

4[(20A) “foreign post office” means any post office appointed under clause (e) of sub-section (1) of 

section 7 to be a foreign post office;] 

(21) “foreign-going vessel or aircraft” means any vessel or aircraft for the time being engaged in the 
carriage of goods or passengers between any port or airport in India and any port or airport outside India, 
whether touching any intermediate port or airport in India or not, and includes— 

(i) any naval vessel of a foreign Government taking part in any naval exercises; 

(ii) any vessel engaged in fishing or any other operations outside the territorial waters of India; 

(iii) any vessel or aircraft proceeding to a place outside India for any purpose whatsoever; 

5[(21A)  “Fund”  means  the  Consumer  Welfare  Fund  established  under  section  12C  of  the  Central 

Excises and Salt Act, 1944 (1 of 1944);] 

(22) “goods” includes— 

(a) vessels, aircrafts and vehicles; 

(b) stores; 

(c) baggage; 

(d) currency and negotiable instruments; and 

1. Subs. by Act 7 of 2017, s. 89, for “customs airport” (w.e.f. 31-3-2017). 
2. The words “in the case of goods imported or to be exported by post, the entry referred to in section 82 or” omitted by s. 89, ibid. 

(w.e.f. 31-3-2017). 

3. Subs. by s. 89, ibid., for “any owner” (w.e.f. 31-3-2017). 
4. Ins. by s. 89, ibid. (w.e.f. 31-3-2017). 
5. Ins. by Act 40 of 1991, s. 9 (w.e.f. 20-9-1991). 

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(e) any other kind of movable property; 

(23) “import”, with its grammatical variations and cognate expressions, means bringing into India from 

a place outside India; 

(24) “1[arrival manifest or import manifest]” or “import report” means the manifest or report required 

to be delivered under section 30; 

(25) “imported goods” means any goods brought into India from a place outside India but does not 

include goods which have been cleared for home consumption; 

(26) “importer”, in relation to any goods at any time between their importation and the time when they 
are cleared for home consumption, includes 2[any owner, beneficial owner] or any person holding himself 
out to be the importer; 

(27) “India” includes the territorial waters of India; 
(28) “Indian Customs Waters” means the 3[waters extending into the sea up to the limit of 4[Exclusive 
Economic zone under section 7] of the Territorial Waters, Continental Shelf, Exclusive Economic Zone 
and other Maritime Zones Act, 1976 (80 of 1976),] and includes any bay, gulf, harbour, creek or tidal river; 
terminal”  means  any  place  appointed  under  clause  (f)  of  

 5[(28A)  “international  courier 

sub-section (1) of section 7 to be an international courier terminal;] 

(29)  “land  customs  station”  means  any  place  appointed  under  clause  (b)  of  section  7  to  be  a  land 

customs station; 

(30) “market price”, in relation to any goods, means the wholesale price of the goods in the ordinary 

course of trade in India; 

6[(30A) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of the 

National Tax Tribunal Act, 2005 (49 of 2005);] 

7[(30AA) “notification” means notification published in the Official Gazette and the expression “notify” 

with its cognate meaning and grammatical variation shall be construed accordingly;] 

5[(30B) “passenger name record information” means the records prepared by an operator of any aircraft 

or vessel or vehicle or his authorised agent for each journey booked by or on behalf of any passenger;] 

(31) “person-in-charge” means,— 

(a) in relation to a vessel, the master of the vessel; 
(b) in relation to an aircraft, the commander or pilot-in-charge of the aircraft; 
(c) in relation to a railway train, the conductor, guard or other person having the chief direction of 

the train; 

(d) in relation to any other conveyance, the driver or other person-in-charge of the conveyance; 

(32) “prescribed” means prescribed by regulations made under this Act; 
(33) “prohibited goods” means any goods the import or export of which is subject to any prohibition 
under this Act or any other law for the time being in force but does not include any such goods in respect 
of which the conditions subject to which the goods are permitted to be imported or exported have been 
complied with; 

(34) “proper officer”, in relation to any functions to be performed under this Act, means the officer of 
customs  who  is  assigned  those  functions  by  the  Board  or  the 8[Principal  Commissioner  of  Customs  or 
Commissioner of Customs] 9[under section 5]; 

(35) “regulations” means the regulations made by the Board under any provision of this Act; 

(36) “rules” means the rules made by the Central Government under any provision of this Act; 

1. Subs. by Act 13 of 2018, s. 56, for “import manifest” (w.e.f. 28-3-2018). 
2. Subs. by Act 7 of 2017, s. 89, for “any owner” (w.e.f. 31-3-2017). 
3. Subs. by Act 25 of 1978, s. 2, for certain words (w.e.f. 1-7-1978). 
4. Subs. by Act 13 of 2018, s. 58, for “contiguous zone of India under section 5” (w.e.f. 28-3-2018). 
5. Ins. by Act 7 of 2017, s. 89 (w.e.f. 31-3-2017). 
6. Ins. by Act 49 of 2005, s. 30 and the Schedule, Part VI (w.e.f. 28-12-2005). 
7. Ins. by Act 13 of 2018, s. 58 (w.e.f. 28-3-2018). 
8. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
9. Ins. by Act 6 of 2022, s. 86, (w.e.f. 30-3-2022). 

13 

 
                                                           
(37) “shipping bill” means a shipping bill referred to in section 50; 

(38) “stores” means goods for use in a vessel or aircraft and includes fuel and spare parts and other 

articles of equipment, whether or not for immediate fitting; 

(39) “smuggling”, in relation to any goods, means any act or omission which will render such goods 

liable to confiscation under section 111 or section 113; 

(40)  “tariff  value”,  in  relation  to  any  goods,  means  the  tariff  value  fixed  in  respect  thereof  under  

sub-section (2) of section 14; 

(41)  “value”,  in  relation  to  any  goods,  means  the  value  thereof  determined  in  accordance  with  the 

provisions of 1[sub-section (1) or sub-section (2) of section 14]; 

(42) “vehicle” means conveyance of any kind used on land and includes a railway vehicle; 

2[(43) “warehouse” means a public warehouse licensed under section 57 or a private warehouse licensed 

under section 58 or a special warehouse licensed under section 58A;] 

(44) “warehoused goods” means goods deposited in a warehouse; 

3* 

* 

* 

* 

* 

CHAPTER II 

OFFICERS OF CUSTOMS 

4[  5[3. Classes of officers of customs.—There shall be the following classes of officers of customs, 

namely:— 

(a)  Principal  Chief  Commissioner  of  Customs  or  Principal  Chief  Commissioner  of  Customs 

(Preventive) or Principal Director General of Revenue Intelligence;  

(b) Chief Commissioner of Customs or Chief Commissioner of Customs (Preventive) or Director 

General of Revenue Intelligence;  

(c)  Principal  Commissioner  of  Customs  or  Principal Commissioner  of  Customs  (Preventive)  or 
Principal Additional Director General of Revenue Intelligence or Principal Commissioner of Customs 
(Audit); 

(d) Commissioner of Customs or Commissioner of Customs (Preventive) or Additional Director 

General of Revenue Intelligence or Commissioner of Customs (Audit); 

(e) Principal Commissioner of Customs (Appeals);  

(f) Commissioner of Customs (Appeals); 

(g) Additional Commissioner of Customs or Additional Commissioner of Customs (Preventive) or 

Additional Director of Revenue Intelligence or Additional Commissioner of Customs (Audit); 

(h)  Joint  Commissioner  of  Customs  or  Joint  Commissioner  of  Customs  (Preventive)  or  Joint 

Director of Revenue Intelligence or Joint Commissioner of Customs (Audit); 

1. Subs. by Act 22 of 2007, s. 94, for “sub-section (1) of section 14” (w.e.f. 1-7-1978). 
2. Subs. by Act 28 of 2016, s. 116, for clause (43) (w.e.f. 14-5-2016). 
3. Clause (45) omitted by s. 116, ibid. (w.e.f. 14-5-2016). 
4. Subs. by Act 22 of 1995, s. 52, for sections 3 and 4 (w.e.f. 26-5-1995). 
5. Subs. by Act 6 of 2022, s. 87 for section 3 (w.e.f. 30-3-2022), earlier it was subs. by Act 25 of 2014, s. 79, for clauses (a), (b), 
(c), (cc), (d), (e) and (f) (w.e.f. 6-8-2014). 

14 

 
 
 
 
 
 
 
 
 
                                                           
(i) Deputy Commissioner of Customs or Deputy Commissioner of Customs (Preventive) or Deputy 

Director of Revenue Intelligence or Deputy Commissioner of Customs (Audit); 

(j) Assistant Commissioner of Customs or Assistant Commissioner of Customs (Preventive) or 

Assistant Director of Revenue Intelligence or Assistant Commissioner of Customs (Audit); 

(k) such other class of officers of customs as may be appointed for the purposes of this Act.] 

4. Appointment of officers of customs.—(1) The 1[Board] may appoint such persons as it thinks fit to 

be officers of customs. 

(2) Without prejudice to the provisions of sub-section (1), 2[Board may authorise a 3[Principal Chief 
Commissioner of Customs or Chief Commissioner of Customs] or] a 4[Principal Commissioner of Customs 
or  Commissioner  of  Customs]  or  a  5[Joint]  or  6[Assistant  Commissioner  of  Customs  or  Deputy 
Commissioner of Customs] to appoint officers of customs below the rank of 6[Assistant Commissioner of 
Customs or Deputy Commissioner of Customs.] 

5. Powers of officers of customs.—(1) Subject to such conditions and limitations as the Board may 
impose, an officer of customs may exercise the powers and discharge the duties conferred or imposed on 
him under this Act. 

7[(1A) Without prejudice to the provisions contained in sub-section (1), the Board may, by notification, 
assign such functions as it may deem fit, to an officer of customs, who shall be the proper officer in relation 
to such functions. 

(1B)  Within  their  jurisdiction  assigned  by  the  Board,  the  Principal  Commissioner  of  Customs  or 
Commissioner of Customs, as the case may be, may, by order, assign such functions, as he may deem fit, 
to an officer of customs, who shall be the proper officer in relation to such functions.] 

(2) An officer of customs may exercise the powers and discharge the duties conferred or imposed under 

this Act on any other officer of customs who is subordinate to him. 

(3)  Notwithstanding  anything  contained  in  this  section, 8[a 9[Commissioner  (Appeals)]]  shall  not 
exercise the powers and discharge the duties conferred or imposed on an officer of customs other than those 
specified in 10[Chapter XV, and section 108 and sub-section (1D) of section 110]. 

11[(4)  In  specifying  the  conditions  and  limitations  referred  to  in  sub-section  (1),  and  in  assigning 
functions  under  sub-section  (1A),  the  Board  may  consider  any  one  or  more  of  the  following  criteria, 
including, but not limited to–– 

(a) territorial jurisdiction; 

(b) persons or class of persons; 

(c) goods or class of goods; 

(d) cases or class of cases; 

1. Subs. by Act 20 of 2002, s. 117, for “Central Government” (w.e.f. 11-5-2002). 
2. Subs. by s. 117, ibid., for “Central Government may authorise the Board” (w.e.f. 11-5-2002). 
3. Subs. by Act 25 of 2014, s. 78, for “Chief Commissioner of Customs” (w.e.f. 6-8-2014). 
4. Subs. by s. 78, ibid., for “Commissioner of Customs” (w.e.f. 6-8-2014). 
5. Subs. by Act 27 of 1999, s. 100, for “Deputy Commissioner of Customs” (w.e.f. 11-5-1999). 
6. Subs. by s. 100, ibid., for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
7. Ins. by Act 6 of 2022, s. 88 (w.e.f. 30-3-2022).  
8. Subs. by Act 44 of 1980, s. 50 and the Fifth Schedule for, “an Appellate Collector of Customs” (w.e.f. 11-10-1982). 
9. Subs. by Act 22 of 1995, s. 50, for “Collector (Appeals)” (w.e.f. 26-5-1995). 
10. Subs. by Act 13 of 2021, s. 90, for “Chapter XV and section 108” (w.e.f. 28-3-2021). 
11. Ins. by Act 6 of 2022, s. 88 (w.e.f. 30-3-2022). 

15 

 
                                                           
(e) computer assigned random assignment; 

(f) any other criterion as the Board may, by notification, specify. 

(5) The Board may, by notification, wherever necessary or appropriate, require two or more officers of 
customs (whether or not of the same class) to have concurrent powers and functions to be performed under 
this Act.] 

6. Entrustment of functions of Board and customs officers on certain other officers.—The Central 
Government may, by notification in the Official Gazette, entrust either conditionally or unconditionally to 
any officer of the Central or the State Government or a local authority any functions of the Board or any 
officer of customs under this Act. 

CHAPTER III 

1[APPOINTMENT OF CUSTOMS PORTS, AIRPORTS, ETC.] 

7.   Appointment  of  customs  ports,  airports,  etc.—2[(1)] The 3[Board]  may,  by  notification  in  the 

Official Gazette, appoint— 

(a) the ports and airports which alone shall be customs ports or customs airports for the unloading 

of imported goods and the loading of export goods or any class of such goods; 

4[(aa)  the  places  which  alone  shall  be  inland 5[container  depots  or  air  freight  stations]  for  the 

unloading of imported goods and the loading of export goods or any class of such goods;] 

(b) the places which alone shall be land customs stations for the clearance of goods imported or to 

be exported by land or inland water or any class of such goods; 

(c) the routes by which alone goods or any class of goods specified in the notification may pass 
by land or inland water into or out of India, or to or from any land customs station from or to any  land 
frontier; 

(d) the ports which alone shall be coastal ports for the carrying on of trade in coastal goods or any 

class of such goods with all or any specified ports in India. 

6[(e) the post offices which alone shall be foreign post offices for the clearance of imported goods 

or export goods or any class of such goods; 

(f) the places which alone shall be international courier terminals for the clearance of imported 

goods or export goods or any class of such goods.] 

7[(2) Every notification issued under this section and in force immediately before the commencement 
of the Finance Act, 2003 (32 of 2003) shall, on such commencement, be deemed to have been issued under 
the provisions of this section as amended by section 105 of the Finance Act, 2003 and shall continue to 
have the same force and effect after such commencement until it is amended, rescinded or superseded under 
the provisions of this section.] 

1. Subs. by Act 28 of 2016, s. 117, for the chapter heading (w.e.f. 14-5-2016). 
2. Section 7 numbered as sub-section (1) thereof by Act 32 of 2003, s. 105 (w.e.f. 14-5-2003). 
3. Subs. by s. 105, ibid., for “Central Government” (w.e.f. 14-5-2003). 
4. Ins. by Act 11 of 1983, s. 47 (w.e.f.13-5-1983). 
5. Subs. by Act 23 of 2012, s. 121, for “container depots” (w.e.f. 28-5-2012). 
6. Ins. by Act 7 of 2017, s. 90 (w.e.f. 31-3-2017).  
7. Ins. by Act 32 of 2003, s. 105 (w.e.f. 14-5-2003). 

16 

 
 
 
                                                           
 
8. Power  to  approve  landing  places  and  specify  limits  of  customs  area.—The 1[Principal 

Commissioner of Customs or Commissioner of Customs] may,— 

(a) approve proper places in any customs port or customs airport or coastal port for the unloading 

and loading of goods or for any class of goods; 

(b) specify the limits of any customs area. 

 9. [Powers to declare places to be warehousing stations.] Omitted by The Finance Act, 2016 (28 of 

2016), s. 118 (w.e.f. 14-5-2016). 

10. Appointment of boarding stations.—The 1[Principal Commissioner of Customs or Commissioner 
of Customs] may, by notification in the Official Gazette, appoint, in or near any customs port, a boarding 
station for the purpose of boarding of, or disembarkation from, vessels by officers of customs. 

CHAPTER IV 

PROHIBITIONS ON IMPORTATION AND EXPORTATION OF GOODS 

11.  Power  to  prohibit  importation  or  exportation  of  goods.—(1)  If  the  Central  Government  is 
satisfied  that  it  is  necessary  so  to  do  for  any  of  the  purposes  specified  in  sub-section  (2),  it  may,  by 
notification in the Official Gazette, prohibit either absolutely or subject to such conditions (to be fulfilled 
before  or  after  clearance) as  may  be  specified  in the  notification,  the  import  or  export  of  goods  of any 
specified description. 

 (2) The purposes referred to in sub-section (1) are the following:— 

(a) the maintenance of the security of India; 

(b) the maintenance of public order and standards of decency or morality; 

(c) the prevention of smuggling; 

(d) the prevention of shortage of goods of any description; 

(e) the conservation of foreign exchange and the safeguarding of balance of payments; 

(f) the prevention of injury to the economy of the country by the uncontrolled import or export of 

2[gold, silver or any other goods]; 

(g) the prevention of surplus of any agricultural product or the product of fisheries; 

(h) the  maintenance  of  standards  for  the  classification,  grading  or  marketing  of  goods 

in international trade; 

(i) the establishment of any industry; 

(j) the prevention of serious injury to domestic production of goods of any description; 

(k) the protection of human, animal or plant life or health; 

(l) the protection of national treasures of artistic, historic or archaeological value; 

(m) the conservation of exhaustible natural resources; 

(n) the protection of patents, trademarks 3[, copyrights, designs and geographical indications]; 

(o) the prevention of deceptive practices; 

(p)  the  carrying  on  of  foreign  trade  in  any  goods  by  the  State,  or  by  a  Corporation  owned 

or controlled by the State to the exclusion, complete or partial, of citizens of India; 

(q)  the fulfilment of  obligations  under  the  Charter  of  the  United  Nations  for  the  maintenance 

of international peace and security; 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs (w.e.f. 6-8-2014). 
2. Subs. by Act 12 of 2020, s. 107, for “gold or silver” (w.e.f. 27-3-2020). 
3. Subs. by Act 17 of 2013, s. 64, for “and copyrights” (w.e.f. 10-5-2013). 

17 

 
 
                                                           
(r) the implementation of any treaty, agreement or convention with any country; 

(s) the compliance of imported goods with any laws which are applicable to similar goods produced 

or manufactured in India; 

(t)  the  prevention  of  dissemination  of  documents  containing  any  matter  which  is  likely  to 

prejudicially affect friendly relations with any foreign State or is derogatory to national prestige; 

(u) the prevention of the contravention of any law for the time being in force; and 

(v) any other purpose conducive to the interests of the general public. 

1[(3) Any prohibition or restriction or obligation relating to import or export of any goods or class of 
goods or clearance thereof provided in any other law for the time being in force, or any rule or regulation 
made or any order or notification issued thereunder, shall be executed under the provisions of that Act only 
if such prohibition or restriction or obligation is notified under the provisions of this Act, subject to such 
exceptions, modifications or adaptations as the Central Government deems fit.] 

2[CHAPTER IVA 

DETECTION OF ILLEGALLY IMPORTED GOODS AND PREVENTION OF THE DISPOSAL THEREOF 

11A. Definitions.—In this Chapter, unless the context otherwise requires,— 

(a) “illegal import” means the import of any goods in contravention of the provisions of this Act or 

any other law for the time being in force; 

(b) “intimated  place”  means  a  place  intimated  under  sub-section  (1),  sub-section  (2)  or  

sub-section (3), as the case may be, of section 11C; 

(c) “notified date”, in relation to goods of any description, means the date on which the notification 

in relation to such goods is issued under section 11B; 

(d) “notified goods” means goods specified in the notification issued under section 11B. 

11B.  Power of  Central  Government  to  notify  goods.—If,  having  regard  to  the  magnitude  of  the 
illegal import of goods of any class or description, the Central Government is satisfied that it is expedient 
in the public interest to take special measures for the purpose of checking the illegal import, circulation or 
disposal of such goods, or facilitating the detection of such goods, it may, by notification in the Official 
Gazette, specify goods of such class or description. 

11C. Persons possessing notified goods to intimate the place of storage, etc.—(1) Every person who 
owns, possesses or controls, on the notified date, any notified goods, shall, within seven days from that 
date, deliver to the proper officer a statement (in such form, in such manner and containing such particulars 
as may be specified by rules made in this behalf) in relation to the notified goods owned, possessed or 
controlled by him and the place where such goods are kept or stored. 

(2) Every person who acquires, after the notified date, any notified goods, shall, before making such 
acquisition, deliver to the proper officer an intimation containing the particulars of the place where such 
goods are proposed to be kept or stored after such acquisition and shall, immediately on such acquisition, 
deliver to the proper officer a statement (in such form, in such manner and containing such particulars as 
may be specified by rules made in this behalf) in relation to the notified goods acquired by him: 

Provided  that  a  person  who  has  delivered  a  statement,  whether  under  sub-section  (1)  or  
sub-section (2), in relation to any notified goods, owned, possessed, controlled or acquired by him, shall 
not be required to deliver any further statement in relation to any notified goods acquired by him, after the 
date of delivery of the said statement, so long as the notified goods so acquired are kept or stored at the 
intimated place. 

1. Sub-section (3) shall stand inserted (date to be notified) by Act 13 of 2018, s. 59. 
2. Chapters IVA, IVB and IVC ins. by Act 12 of 1969, s. 2 (w.e.f. 3-1-1969). 

18 

 
  
                                                           
(3) If any person intends to shift any notified goods to any place other than the intimated place, he shall, 
before taking out such goods from the intimated place, deliver to the proper officer an intimation containing 
the particulars of the place to which such goods are proposed to be shifted. 

(4) No person shall, after the expiry of seven days from the notified date, keep or store any notified 

goods at any place other than the intimated place. 

(5) Where any notified goods have been sold or transferred, such goods shall not be taken from one 

place to another unless they are accompanied by the voucher referred to in section 11F. 

(6) No notified goods (other than those which have been sold or transferred) shall be taken from one 
place to another unless they are accompanied by a transport voucher (in such form and containing such 
particulars as may be specified by rules made in this behalf) prepared by the persons owning, possessing or 
controlling such goods. 

 11D. Precautions  to  be  taken  by  persons  acquiring  notified  goods.—No  person  shall  acquire 
(except  by  gift  or  succession,  from  any  other  individual  in  India),  after  the  notified  date,  any  notified 
goods— 

(i) unless such goods are accompanied by,— 

(a) the voucher referred to in section 11F or the memorandum referred to in sub-section (2) of 

section 11G, as the case may be, or 

(b)  in  the  case  of  a  person  who  has  himself  imported  any  goods,  any  evidence  showing 

clearance of such goods by the Customs Authorities; and 

(ii) unless he has taken, before acquiring such goods from a person other than a dealer having a 
fixed place of business, such reasonable steps as may be specified by rules made in this behalf, to ensure 
that the goods so acquired by him are not goods which have been illegally imported. 

11E. Persons possessing notified goods to maintain accounts.—(1) Every person who, on or after 
the notified date, owns, possesses, controls or acquires any notified goods shall maintain (in such form and 
in such manner as may be specified by rules made in this behalf) a true and complete account of such goods 
and shall, as often as he acquires or parts with any notified goods, make an entry in the said account in 
relation to such acquisition or parting with, and shall also state therein the particulars of the person from 
whom such goods have been acquired or in whose favour such goods have been parted with, as the case 
may be, and such account shall be kept, along with the goods, at the place of storage of the notified goods 
to which such accounts relate: 

Provided that it shall not be necessary to maintain separately accounts in the form and manner specified 
by rules made in this behalf in the case of a person who is already maintaining accounts which contain the 
particulars specified by the said rules. 

 (2) Every person who owns, possesses or controls any notified goods and who uses any such goods for 
the  manufacture of any  other  goods,  shall  maintain (in  such form,  in such  manner and  containing  such 
particulars as may be specified by rules made in this behalf) a true and complete account of the notified 
goods so used by him and shall keep such account at the intimated place. 

11F. Sale, etc., of notified goods to be evidenced by vouchers.—On and from the notified date, no 
person shall sell or otherwise transfer any notified goods, unless every transaction in relation to the sale or 
transfer of such goods is evidenced by a voucher in such form and containing such particulars as may be 
specified by rules made in this behalf. 

19 

 
 
 
11G. Sections 11C, 11E and 11F not to apply to goods in personal use.—(1) Nothing in sections 

11C, 11E and 11F shall apply to any notified goods which are— 

(a) in personal use of the person by whom they are owned, possessed or controlled, or 

(b) kept in the residential premises of a person for his personal use. 

(2) If any person, who is in possession of any notified goods referred to in sub-section (1), sells, or 
otherwise  transfers  for  a  valuable  consideration,  any  such  goods,  he  shall  issue  to  the  purchaser  or 
transferee, as the case may be, a memorandum containing such particulars as may be specified  by rules 
made in this behalf and no such goods shall be taken from one place to another unless they are accompanied 
by the said memorandum. 

PREVENTION OR DETECTION OF ILLEGAL EXPORT OF GOODS 

11-H. Definitions.—In this Chapter, unless the context otherwise requires,— 

CHAPTER IVB 

(a)  “illegal  export”  means  the  export  of  any  goods  in  contravention  of  the  provisions  of  this  

Act or any other law for the time being in force; 

(b)  “intimated  place”  means  a  place  intimated  under  sub-section  (1),  sub-section  (2)  or  

sub-section (3), as the case may be, of section 11J; 

(c) “specified area” includes the Indian customs waters, and such inland area, not exceeding one 
hundred kilometres in width from any coast or other border of India, as the Central Government may, 
having regard to the vulnerability of that area to smuggling, by notification in the Official Gazette, 
specify in this behalf: 

 Provided that where a part of any village, town or city falls within a specified area, the whole of 
such  village,  town  or  city  shall,  notwithstanding  that  the  whole  of  it  is  not  within  one  hundred 
kilometres from any coast or other border of India, be deemed to be included in such specified area; 

(d) “specified date”, in relation to specified goods, means the date on which any notification is 

issued under section 11-I in relation to those goods in any specified area; 

(e) “specified  goods”  means  goods  of  any  description  specified  in  the  notification  issued  under 

section 11-I in relation to a specified area. 

11-I. Power of Central Government to specify goods.—If, having regard to the magnitude of the 
illegal export of goods of any class or description, the Central Government is satisfied that it is expedient 
in the public interest to take special measures for the purpose of checking the illegal export or facilitating 
the  detection  of  goods  which  are  likely  to  be  illegally  exported,  it  may,  by  notification  in  the  Official 
Gazette, specify goods of such class or description. 

 11J. Persons possessing specified goods to intimate the place of storage, etc.—(1) Every person 
who owns, possesses or controls, on the specified date, any specified goods, the market price of which 
exceeds fifteen thousand rupees shall, within seven days from that date, deliver to the proper officer an 
intimation containing the particulars of the place where such goods are kept or stored within the specified 
area. 

(2)  Every  person  who  acquires  (within  the  specified  area),  after  the  specified  date,  any  specified 

goods,— 

(i) the market price of which, or 

(ii)  the market price of which together with the market price of any specified goods of the  same 

class or description, if any, owned, possessed or controlled by him on the date of  such acquisition, 

exceeds  fifteen  thousand  rupees  shall,  before  making  such  acquisition,  deliver  to  the  proper  officer  an 
intimation containing the particulars of the place where such goods are proposed to be kept or stored after 
such acquisition: 

20 

 
Provided that  a  person  who  has  delivered an  intimation,  whether  under  sub-section  (1)  or  
sub-section (2), in relation to any specified goods, owned, possessed, controlled or acquired by him, shall 
not be required to deliver any further intimation so long as the specified goods are kept or stored at the 
intimated place. 

(3) If any person intends to shift any specified goods to which sub-section (1) or sub-section (2) applies, 
to any place other than the intimated place, he shall, before taking out such goods from the intimated place, 
deliver to the proper officer an intimation containing the particulars of the place to which such goods are 
proposed to be shifted. 

(4) No person shall, after the expiry of seven days from the specified date, keep or store any specified 

goods to which sub-section (1) or sub-section (2) applies, at any place other than the intimated place. 

11K.  Transport  of  specified  goods to  be covered  by  vouchers.—(1)  No  specified  goods shall be 
transported from, into or within any specified area or loaded on any animal or conveyance in such area, 
unless they are accompanied by a transport voucher (in such form and containing such particulars as may 
be specified by rules made in this behalf) prepared by the person owning, possessing, controlling or selling 
such goods: 

         Provided that no transport voucher shall be necessary for the transport, within a village, town or city, 
of any specified goods the market price of which, on the date of transport, does not exceed one thousand 
rupees. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  where  the  Central  Government,  after 
considering the nature of any specified goods, the time,  mode, route and the market price of the goods 
intended to be transported, the purpose of the transportation and the vulnerability of the specified area with 
regard to the illegal export of such goods, is satisfied that it is expedient in the public interest so to do, it 
may, — 

(i) by notification in the Official Gazette, specify goods of such class or description and of a market 
price exceeding such sum as that Government may notify; and different sums in relation to the specified 
goods of the same class or description, or different classes or descriptions, may be notified for the same 
specified area or for different specified areas, and 

(ii)  direct  that  no  person  shall  transport  any  goods  so  specified  unless  the  transport  voucher  in 

relation to them has been countersigned by the proper officer. 

11L. Persons possessing specified goods to maintain accounts.—(1) Every person who, on or after 
the specified date, owns, possesses or controls, within a specified area, any specified goods of a market 
price  exceeding  fifteen  thousand  rupees,  shall  maintain  (in  such  form  and  in  such  manner  as  may  be 
specified by rules made in this behalf) a true and complete account of such goods and shall, as often as he 
acquires or parts with any specified goods, make an entry in the said account in relation to such acquisition 
or parting with, and shall also state therein the particulars of the person from whom such goods have been 
acquired or in whose favour such goods have been parted with, as the case may be, and such account shall 
be kept, along with the goods, at the place of storage of the specified goods to which such accounts relate: 

Provided that it shall not be necessary to maintain separately accounts in the form and manner specified 
by rules made in this behalf in the case of a person who is already maintaining accounts which contain the 
particulars specified by the said rules. 

(2)  Every  person  who  owns,  possesses  or  controls  any  specified  goods  to  which  the  provisions  of  
sub-section (1) apply, and who uses any such goods for the manufacture of any other goods, shall maintain 
(in such form, in such manner and containing such particulars as may be specified by rules made in this 
behalf) a true and complete account of the specified goods so used by him and shall keep such account at 
the intimated place. 

(3)  If at any time, on a verification made by a proper officer, it is found that any specified goods owned, 
possessed or controlled by a person are lesser in quantity than the stock of such goods as shown, at the time 
of such verification, in the accounts referred to in sub-section (1), read with the accounts referred to in sub-
section (2), it shall be presumed, unless the contrary is proved, that such goods, to the extent that they are 

21 

 
lesser than the stock shown in the said accounts, have been illegally exported and that the person owning, 
possessing or controlling such goods has been concerned with the illegal export thereof. 

11M. Steps to be taken by persons selling or transferring any specified goods.—Except where he 
receives payment by cheque drawn by the purchaser, every person who sells or otherwise transfers within 
any  specified  area,  any  specified  goods,  shall  obtain,  on  his  copy  of  the  sale  or  transfer  voucher,  the 
signature and full postal address of the person to whom such sale or transfer is made and shall also take 
such other reasonable steps as may be specified by rules made in this behalf to satisfy himself as to the 
identity of the purchaser or the transferee, as the case may be, and if after an inquiry made by a proper 
officer, it is found that the purchaser or the transferee, as the case may be, is not either readily traceable or 
is a fictitious person, it shall be presumed, unless the contrary is proved, that such goods have been illegally 
exported and the person who had sold or otherwise transferred such goods had been concerned in such 
illegal export: 

Provided that nothing in this section shall apply to petty sales of any specified goods if the aggregate 
market price obtained by such petty sales, made in the course of a day, does not exceed two thousand and 
five hundred rupees. 

Explanation.—In this section “petty sale” means a sale at a price which does not exceed one thousand 

rupees. 

POWER TO EXEMPT FROM THE PROVISIONS OF CHAPTERS IVA AND IVB 

CHAPTER IVC 

11N.    Power  to  exempt.—If  the  Central  Government  is  satisfied  that  it  is  necessary  in  the  public 
interest  so  to  do,  it  may,  by  notification  in  the  Official  Gazette,  exempt  generally,  either  absolutely  or 
subject to such conditions as may be specified in the notification, goods of any class or description from all 
or any of the provisions of Chapter IVA or Chapter IVB.] 

CHAPTER V 

LEVY OF, AND EXEMPTION FROM, CUSTOMS DUTIES 

12.  Dutiable goods.—(1) Except as otherwise provided in this Act, or any other law for the time being 
in force, duties of customs shall be levied at such rates as may be specified under the 1[Customs Tariff Act, 
1975 (51 of 1975)], or any other law for the time being in force, on goods imported into, or exported from, 
India. 

2 [(2)  The provisions of sub-section (1) shall apply in respect of all goods belonging to Government as 

they apply in respect of goods not belonging to Government.] 

13.  Duty on pilfered goods.—If any imported goods are pilfered after the unloading thereof and before 
the proper officer has made an order for clearance for home consumption or deposit in a warehouse, the 
importer shall not be liable to pay the duty leviable on such goods except where such goods are restored to 
the importer after pilferage. 

3[14.  Valuation of goods.—(1)  For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any 
other  law  for  the  time  being  in  force,  the  value  of  the  imported  goods  and  export  goods  shall  be  the 
transaction value of such goods, that is to say, the price actually paid or payable for the goods when sold 
for export to India for delivery at the time and place of importation, or as the case may be, for export from 
India for delivery at the time and place of exportation, where the buyer and seller of the goods are not 
related and price is the sole consideration for the sale subject to such other conditions as may be specified 
in the rules made in this behalf: 

Provided that such transaction value in the case of imported goods shall include, in addition to the price 
as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, 
engineering,  design  work,  royalties and licence fees, costs  of transportation  to  the  place  of  importation, 

1. Subs. by Act 51 of 1975, s. 13, for “Indian Tariff Act, 1934 (32 of 1934)” (w.e.f. 2-8-1976). 
2. Subs. by Act 30 of 1963, s. 2, for sub-section (2) (w.e.f. 1-10-1963). 
3. Subs. by Act 22 of 2007, s. 95, for section 14 (w.e.f. 10-10-2007). 

22 

 
                                                           
insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules 
made in this behalf: 

Provided further that the rules made in this behalf may provide for,— 

(i) the circumstances in which the buyer and the seller shall be deemed to be related; 

(ii) the manner of determination of value in respect of goods when there is no sale, or the buyer and 

the seller are related, or price is not the sole consideration for the sale or in any other case; 

(iii)  the manner of acceptance or rejection of value declared by the importer or exporter, as the case 
may  be,  where  the  proper  officer  has  reason  to  doubt  the  truth  or  accuracy  of  such value,  and 
determination of value for the purposes of this section:  

1[(iv) the additional obligations of the importer in respect of any class of imported goods and the 
checks to be exercised, including the circumstances and manner of exercising thereof, as the Board may 
specify,  where,  the  Board  has  reason  to  believe  that  the  value  of  such  goods  may  not  be  declared 
truthfully or accurately, having regard to the trend of declared value of such goods or any other relevant 
criteria] 

Provided also that such price shall be calculated with reference to the rate of exchange as in force on 
the date on which a bill of entry is presented under section 46, or a shipping bill of export, as the case may 
be, is presented under section 50. 

(2)  Notwithstanding anything contained in sub-section (1), if the Board is satisfied that it is necessary 
or  expedient  so  to  do,  it  may,  by  notification  in  the  Official  Gazette,  fix  tariff  values  for  any  class  of 
imported goods or export goods, having regard to the trend of value of such or like goods, and where any 
such tariff values are fixed, the duty shall be chargeable with reference to such tariff value. 

 Explanation.—For the purposes of this section— 

(a) “rate of exchange” means the rate of exchange— 

(i)   determined by the Board, or 

(ii) ascertained in such manner as the Board may direct,  

for the conversion of Indian currency into foreign currency or foreign currency into Indian currency; 

(b) “foreign  currency”  and  “Indian  currency”  have  the  meanings  respectively  assigned  to  them 
in clause  (m)  and  clause  (q)  of  section  2  of  the  Foreign  Exchange  Management  Act,  1999  
(42 of 1999).] 

15.   Date  for  determination  of  rate  of  duty  and  tariff  valuation  of  imported  goods.—
(1)   2[The rate of duty 3***] and tariff valuation, if any, applicable to any imported goods, shall be the rate 
and valuation in force,— 

(a) in the case of goods entered for home consumption under section 46, on the date on which a 

bill of entry in respect of such goods is presented under that section; 

(b) in the case of goods cleared from a warehouse under section 68, on the date on which 4[a bill of 

entry for home consumption in respect of such goods is presented under that section]; 

(c) in the case of any other goods, on the date of payment of duty:            

5[Provided that if a bill of entry has been presented before the date of entry inwards of the vessel or the 
arrival of the aircraft 6[or the vehicle] by which the goods are imported, the bill of entry shall be deemed to 
have been presented on the date of such entry inwards or the arrival, as the case may be.] 

(2)   The provisions of this section shall not apply to baggage and goods imported by post. 

1. Ins. by Act 6 of 2022, s. 89, (w.e.f. 30-3-2022).  
2. Subs. by Act 20 of 1966, s. 3, for “The rate of duty” (w.e.f. 31-8-1966). 
3. The words “, rate of exchange” omitted by Act 25 of 1978, s. 4 (w.e.f. 1-7-1978). 
4. Subs. by Act 32 of 2003, s. 106, for “the goods are actually removed from the warehouse” (w.e.f. 14-5-2003). 
5. Subs. by Act 33 of 1996, s. 59, for the proviso (w.e.f. 28-9-1996).  
6. Ins. by Act 25 of 2014, s. 80 (w.e.f. 6-8-2014). 

23 

 
                                                           
1* 

* 

* 

* 

* 

16.   Date for determination of rate of duty and tariff valuation of export goods.—2[(1) The rate of 
duty  and  tariff  valuation,  if  any,  applicable  to  any  export  goods,  shall  be  the  rate  and  valuation  in  
force,— 

(a) in the case of goods entered for export under section 50, on the date on which the proper officer 
the  goods  for  exportation  under  

loading  of 

makes  an  order  permitting  clearance  and 
section 51; 

(b) in the case of any other goods, on the date of payment of duty.] 

(2) The provisions of this section shall not apply to baggage and goods exported by post. 

3[17.  Assessment  of  duty.—(1)  An  importer  entering  any  imported  goods  under  section  46,  or  an 
exporter  entering  any  export  goods  under  section  50,  shall,  save  as  otherwise  provided  in  section  85,  
self-assess the duty, if any, leviable on such goods. 

(2)  The  proper  officer  may  verify  4[the  entries  made  under  section  46  or  section  50  and  the  
self-assessment of goods referred to in sub-section (1)] and for this purpose, examine or test any imported 
goods or export goods or such part thereof as may be necessary. 

5[Provided that the selection of cases for verification shall primarily be on the basis of risk evaluation 

through appropriate selection criteria.] 

6[(3)  For  7[the  purposes  of  verification]  under  sub-section  (2),  the  proper  officer  may  require  the 
importer, exporter or any other person to produce any document or information, whereby the duty leviable 
on the imported goods or export goods, as the case may be, can be ascertained and thereupon, the importer, 
exporter or such other person shall produce such document or furnish such information.] 

(4)  Where  it  is  found  on  verification,  examination  or  testing  of  the  goods  or  otherwise  that  the  
self- assessment is not done correctly, the proper officer may, without prejudice to any other action which 
may be taken under this Act, re-assess the duty leviable on such goods. 

(5) Where any re-assessment done under sub-section (4) is contrary to the  self-assessment done by the 
importer or exporter 8*** and in cases other than those where the importer or exporter, as the case may be, 
confirms his acceptance of the said re-assessment in writing, the proper officer shall pass a speaking order 
on 
of  
fifteen 
re-assessment of the bill of entry or the  shipping bill, as the case may  be. 

re-assessment, 

within 

from 

days 

date 

the 

the 

9* 

* 

* 

* 

* 

Explanation.—For the removal of doubts, it is hereby declared that in cases where an importer has 
entered any imported goods under section 46 or an exporter has entered any export goods under section 50 
before the date on which the Finance Bill, 2011 receives the assent of the President, such imported goods 
or export goods shall continue to be governed by the provisions of section 17 as it stood immediately before 
the date on which such assent is received.] 

1. Sub-Section (3) omitted by Act 25 of 1978, s. 4 (w.e.f. 1-7-1978). Earlier sub-section (3) inserted by Act 20 of 1966, s. 3 (w.e.f. 

31-8-1966). 

2. Subs. by Act 23 of 1986, s. 50, for sub-section (1) (w.e.f. 13-5-1986). 
3. Subs. by Act 8 of 2011, s. 38, for section 17 (w.e.f. 8-4-2011). 
4. Subs. by Act 13 of 2018, s. 60, for “the self-assessment of such goods” (w.e.f. 28-3-2018). 
5. Ins. by s. 60, ibid. (w.e.f. 28-3-2018). 
6. Subs. by Act 7 of 2017, s. 91, for sub-section (3) (w.e.f. 31-3-2017). 
7. Subs. by Act 13 of 2018, s. 60, for “verification of self-assessment” (w.e.f. 28-3-2018). 
8. The words “regarding valuation of goods, classification, exemption or concessions of duty availed consequent to any notification 

issued therefor under this Act” omitted by s. 60, ibid. (w.e.f. 28-3-2018). 

9. Sub-section (6) omitted by s. 60, ibid. (w.e.f. 28-3-2018). 

24 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
18.   Provisional  assessment  of  duty.—1[(1)  Notwithstanding  anything  contained  in  this  Act  but 

without prejudice to the provisions of section 46 2[and section 50],— 

(a)  where  the  importer  or  exporter  is  unable  to  make  self-assessment  under  sub-section  (1)  of 

section 17 and makes a request in writing to the proper officer for assessment; or 

(b) where the proper officer deems it necessary to subject any imported goods or export goods to 

any chemical or other test; or 

(c) where the importer or exporter has produced all the necessary documents and furnished full 

information but the proper officer deems it necessary to make further enquiry; or 

(d) where necessary documents have not been produced or information has not been furnished and 

the proper officer deems it necessary to make further enquiry,  

the proper officer may direct that the duty leviable on such goods be assessed provisionally if the importer 
or the exporter, as the case may be, furnishes such security as the proper officer deems fit for the payment 
of the deficiency, if any, between the duty as may be finally assessed or re-assessed as the case may be, and 
the duty provisionally assessed.] 

2[(1A)  Where,  pursuant  to  the  provisional  assessment  under  sub-section  (1),  if  any  document  or 
information is required by the proper officer for final assessment, the importer or exporter, as the case may 
be, shall submit such document or information within such time, and the proper officer shall finalise the 
provisional assessment within such time and in such manner, as may be prescribed.] 

(2) When the duty leviable on such goods is assessed finally 3[or re-assessed by the proper officer] in 

accordance with the provisions of this Act, then— 

(a) in the case of goods cleared for home consumption or exportation, the amount paid shall be 
adjusted against the duty 4[finally assessed or re-assessed, as the case may be,] and if the amount so 
paid falls short of, or is in excess of  5[the duty  4[finally assessed or re-assessed, as the case may be,]], 
the importer or the exporter of the goods shall pay the deficiency or be entitled to a refund, as the case 
may be; 

(b) in the case of warehoused goods, the proper officer may, where the duty  4[finally assessed or 
re-assessed, as the case may be,] is in excess of the duty provisionally assessed, require the importer to 
execute a bond, binding himself in a sum equal to twice the amount of the excess duty. 

6[(3) The importer or exporter shall be liable to pay interest, on any amount payable to the Central 
Government, consequent to the final assessment order 3[or re-assessment order] under sub-section (2), at 
the rate fixed by the Central Government under section 7[28AA] from the first day of the month in which 
the duty is provisionally assessed till the date of payment thereof.] 

(4)   Subject the sub-section (5), if any refundable amount referred to in clause (a) of sub-section (2) is 
not refunded under that sub-section within three months from the date of assessment, of duty finally 3[or 
re-assessment of duty, as the case may be,] there shall be paid an interest on such un-refunded amount at 
such rate fixed by the Central Government under section 27A till the date of refund of such amount.] 

1. Subs. by Act 8 of 2011, s. 39, for sub-section (1) (w.e.f. 8-4-2011). 
2. Ins. by Act 13 of 2018, s. 61 (w.e.f. 28-3-2018). 
3. Ins. by Act 8 of 2011, s. 39 (w.e.f. 8-4-2011). 
4. Subs. by s. 39, ibid., for “finally assessed” (w.e.f. 8-4-2011). 
5. Subs. by Act 56 of 1974, s. 3 and the Second Schedule, for “the finally assessed” (w.e.f. 20-12-1974). 
6. Ins. by Act 29 of 2006, s. 21 (w.e.f. 13-7-2006). 
7. Subs. by Act 13 of 2018, s. 61, for “28AB” (w.e.f. 8-4-2011). 

25 

 
 
 
                                                           
(5)   The amount of duty refundable under sub-section (2) and the interest under sub-section (4), if any, 
shall, instead of being credited to the Fund, be paid to the importer or the exporter, as the case may be, if 
such amount is relatable to— 

(a) the duty and interest, if any, paid on such duty paid by the importer, or the exporter, as the case 
may be, if he had not passed on the incidence of such duty and interest, if any, paid on such duty to any 
other person; 

(b)  the duty and interest, if any, paid on such duty on imports made by an individual for his personal 

use; 

(c)  the duty and interest, if any, paid on such duty borne by the buyer, if he had not passed on the 

incidence of such duty and interest, if any, paid on such duty to any other person; 

(d)  the export duty as specified in section 26; 

(e) drawback of duty payable under sections 74 and 75.] 

19.  Determination of duty where goods consist of articles liable to different rates of duty.—Except 
as otherwise provided in any law for the time being in force, where goods consist of a set of articles, duty 
shall be calculated as follows:— 

(a) articles liable to duty with reference to quantity shall be chargeable to that duty; 

(b) articles liable to duty with reference to value shall, if they are liable to duty at the same rate, be 
chargeable to duty at that rate, and if they are liable to duty at different rates, be chargeable to duty at 
the highest of such rates; 

(c) articles not liable to duty shall be chargeable to duty at the rate at which articles liable to duty 

with reference to value are liable under clause (b): 

Provided that, — 

(a) accessories of, and spare parts or maintenance and repairing implements for, any article which 
satisfy the conditions specified in the rules made in this behalf shall be chargeable at the same rate of 
duty as that article; 

(b) if the importer produces evidence to the satisfaction of the proper officer  1[or the evidence is 
available] regarding the value of any of the articles liable to different rates of duty, such article shall be 
chargeable to duty separately at the rate applicable to it. 

2[20. Re-importation of goods.—If goods are imported into India after exportation therefrom, such 
goods shall be liable to duty and be subject to all the conditions and restrictions, if any, to which goods of 
the like kind and value are liable or subject, on the importation thereof:] 

3[*   

* 

* 

* 

*] 

21. Goods derelict, wreck, etc.—All goods, derelict, jetsam, flotsam and wreck brought or coming 
into India, shall be dealt with as if they were imported into India, unless it be shown to the satisfaction of 
the proper officer that they are entitled to be admitted duty-free under this Act. 

22.   Abatement  of  duty  on  damaged  or  deteriorated  goods.—(1)   Where it  is  shown  to  the 

satisfaction of the 4[Assistant Commissioner of Customs or Deputy Commissioner of Customs]— 

(a) that any imported goods had been damaged or had deteriorated at any time before or during the 

unloading of the goods in India; or 

(b) that any imported goods, other than warehoused goods, had been damaged at any time after the 
unloading thereof in India but before their examination under section 17, on account of any accident 
not due to any wilful act, negligence or default of the importer, his employee or agent; or 

1. Ins. by Act 8 of 2011, s. 40 (w.e.f. 8-4-2011). 
2. Subs. by Act 32 of 1994, s. 60, for section 20 (w.e.f. 13-5-1994). 
3. The provisos and the Explanations omitted by Act 22 of 1995, s. 53 (w.e.f. 26-5-1995). 
4. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 

26 

 
 
 
 
 
 
 
 
                                                           
(c)  that  any  warehoused  goods  had  been  damaged  at  any  time  before  clearance  for  home 
consumption on account of any accident not due to any wilful act, negligence or default of the owner, 
his employee or agent,  

such goods shall be chargeable to duty in accordance with the provisions of sub-section (2). 

(2) The duty to be charged on the goods referred to in sub-section (1) shall bear the same proportion to 
the duty chargeable on the goods before the damage or deterioration which the value of the damaged or 
deteriorated goods bears to the value of the goods before the damage or deterioration. 

(3) For the purposes of this section, the value of damaged or deteriorated goods may be ascertained by 

either of the following methods at the option of the owner:— 

(a) the value of such goods may be ascertained by the proper officer, or 
(b) such goods may be sold by the proper officer by public auction or by tender, or with the consent 
of the owner in any other manner, and the gross sale proceeds shall be deemed to be the value of such 
goods. 
23.   Remission  of  duty  on  lost,  destroyed  or  abandoned  goods.—(1) 1[Without  prejudice  to  the 
provisions of section 13, where it is shown] to the satisfaction of the 2[Assistant Commissioner of Customs 
or Deputy Commissioner of Customs] that any imported goods have been lost 3[(otherwise than as a result 
of  pilferage)]  or  destroyed,  at  any  time  before  clearance  for  home  consumption,  the 2[Assistant 
Commissioner of Customs or Deputy Commissioner of Customs] shall remit the duty on such goods. 

4[(2) The owner of any imported goods may, at any time before an order for clearance of goods for 
home consumption under section 47 or an order for permitting the deposit of goods in a warehouse under 
section 60 has been made, relinquish his title to the goods and thereupon he shall not be liable to pay the 
duty thereon;] 

5[Provided that the owner of any such imported goods shall not be allowed to relinquish his title to such 
goods regarding which an offence appears to have been committed under this Act or any other law for the 
time being in force.] 

24. Power to  make  rules for  denaturing  or  mutilation  of  goods.—The  Central  Government  may 
make rules for permitting at the request of the owner the denaturing or mutilation of imported goods which 
are ordinarily used for more than one purpose so as to render them unfit for one or more of such purposes; 
and where any goods are so denatured or mutilated they shall be chargeable to duty at such rate as would 
be applicable if the goods had been imported in the denatured or mutilated form. 

25.  Power  to  grant  exemption  from  duty.—(1)  If  the  Central  Government  is  satisfied  that  it  is 
necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally 
either absolutely or subject to such conditions (to be fulfilled before or after clearance) as may be specified 
in  the  notification  goods  of  any  specified  description  from  the  whole  or  any  part  of  duty  of  customs 
leviable thereon. 

 6[(2)   If the Central Government is satisfied that it is necessary in the public interest so to do, it may, 
by special order in each case, exempt from the payment of duty, under circumstances of an exceptional 
nature to be stated in such order, any goods on which duty is leviable.] 

7 [(2A)  The Central Government may, if it considers it necessary or expedient so to do for the purpose 
of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under 
sub-section (2), insert an explanation in such notification or order, as the case may be, by notification in the 
Official Gazette, at any time within one year of issue of the notification under sub-section (1) or order under 

1. Subs. by Act 11 of 1983, s. 48, for “Where it is shown” (w.e.f. 13-5-1983). 
2. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
3. Ins. by Act 11 of 1983, s. 48 (w.e.f. 13-5-1983). 
4. Subs. by Act 32 of 1994, s. 60, for sub-section (2) (w.e.f. 13-5-1994). 
5. The proviso ins. by Act 21 of 2006, s. 58 (w.e.f. 18-4-2006). 
6. Subs. by Act 32 of 2003, s. 107, for sub-section (2) (w.e.f. 14-5-2003).  
7. Ins. by Act 20 of 2002, s. 119 (w.e.f. 11-5-2002). 

27 

 
                                                           
sub-section (2), and every such explanation shall have effect as if it had always been the part of the first 
such notification or order, as the case may be.] 

 1[(3) An exemption under sub-section (1) or sub-section (2) in respect of any goods from any part of 
the duty of customs leviable thereon (the duty of customs leviable thereon being hereinafter referred to as 
the statutory duty) may be granted by providing for the levy of a duty on such goods at a rate expressed in 
a  form  or  method  different  from  the  form  or  method  in  which  the  statutory  duty  is leviable and  any 
exemption granted in relation to any goods in the manner provided in this sub-section shall have effect 
subject  to the  condition  that the  duty  of  customs  chargeable  on  such  goods  shall  in  no  case exceed the 
statutory duty. 

 Explanation.—”Form or method”, in relation to a rate of duty of customs, means the basis, namely, 
valuation,  weight,  number,  length,  area,  volume  or  other  measure  with  reference  to  which  the  duty 
is leviable.] 

2[(4)   Every  notification  issued  under  sub-section  (1)  or  sub-section  (2A)  shall, unless  otherwise 
provided, come into force on the date of its issue by the Central Government for publication in the Official 
Gazette.] 

3[(4A) Where any exemption is granted subject to any condition under sub-section (1), such exemption 
to  31st  day  of 

shall,  unless  otherwise  specified  or  varied  or 
March falling immediately after two years from the date of such grant or variation: 

rescinded,  be  valid  up 

Provided that in respect of any such exemption in force as on the date on which the Finance Bill, 2021 
receives the assent of the President, the said period of two years shall be reckoned from the 1st day of 
February, 2021.] 

4* 
5[(6)   Notwithstanding  anything  contained  in  this  Act,  no  duty  shall  be  collected  if  the  amount  of 

* 

* 

* 

* 

duty leviable is equal to, or less than, one hundred rupees.] 

6[(7)   The mineral oils (including petroleum and natural gas) extracted or produced in the continental 
shelf of India or exclusive economic zone of India as referred to in section 6 and section 7, respectively, of 
the  Territorial  Waters,  Continental  Shelf,  Exclusive  Economic  Zone  and  Other  Maritime  Zones  
Act, 1976 (80 of 1976), and imported prior to the 7th day of February, 2002 shall be deemed to be and shall 
always be deemed to have been exempted from the whole of the duties of customs leviable on such mineral 
oils and accordingly, notwithstanding anything contained in any judgment, decree or order of any court, 
tribunal or other authority, no suit or other proceedings in respect of such mineral oils shall be maintained 
or continued in any court, tribunal or other authority. 

(8)   Notwithstanding the exemption provided under sub-section (7), no refund of duties of customs 

paid in respect of the mineral oils specified therein shall be made.] 

7[25A. Inward processing of goods.—Where the Central Government is satisfied that it is necessary 
in the public interest so to do, it may, by notification, exempt such of the goods which are imported for the 
purposes of repair, further processing or manufacture, as may be specified therein, from the whole or any 
part of duty of customs leviable thereon, subject to the following conditions, namely:— 

(a) the goods shall be re-exported after such repair, further processing or manufacture, as the case 
may be, within a period of one year from the date on which the order for clearance of the imported 
goods is made; 

1. Ins. by Act 11 of 1983, s. 49 (w.e.f. 13-5-1983). 
2. Subs. by Act 28 of 2016, s. 119, for sub-section (4) (w.e.f. 14-5-2016).   
3. Ins. by Act 13 of 2021, s. 91 (w.e.f. 28-3-2021). 
4. Sub-section (5) omitted by, s. 119, ibid. (w.e.f. 14-5-2016). 
5. Ins. by Act 32 of 2003, s. 107 (w.e.f. 14-5-2003). 
6. Ins. by Act 25 of 2014, s. 81 (w.e.f. 6-8-2014). 
7. Ins. by Act 13 of 2018, s. 62 (w.e.f. 28-3-2018). 

28 

 
 
 
 
 
 
 
 
 
                                                           
(b) the imported goods are identifiable in the export goods; and 

(c) such other conditions as may be specified in that notification. 

25B. Outward processing of goods.—Notwithstanding anything contained in section 20, where the 
Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification, 
exempt such of the goods which are re-imported after being exported for the purposes of repair, further 
processing or manufacture, as may be specified therein, from the whole or any part of duty of customs 
leviable thereon, subject to the following conditions, namely:— 

(a) the goods shall be re-imported into India after such repair, further processing or manufacture, 
as the case may be, within a period of one year from the date on which the order permitting clearance 
for export is made; 

(b) the exported goods are identifiable in the re-imported goods; and 

(c) such other conditions as may be specified in that notification.] 

 26.  Refund of export duty in certain cases. —Where on the exportation of any goods any duty has 

been paid, such duty shall be refunded to the person by whom or on whose behalf it was paid, if — 

(a)  the goods are returned to such person otherwise than by way of re-sale; 

(b)  the goods are re-imported within one year from the date of exportation; and 

(c)  an application for refund of such duty is made before the expiry of six months from the date on 

which the proper officer makes an order for the clearance of the goods. 

1[26A.  Refund of import duty in certain cases.—(1) Where on the importation of any goods capable 
of being easily identified as such imported goods, any duty has been paid on clearance of such goods for 
home consumption, such duty shall be refunded to the person by whom or on whose behalf it was paid, if— 

(a)   the  goods  are  found  to  be  defective  or  otherwise  not  in  conformity  with  the  specifications 

agreed upon between the importer and the supplier of goods: 

Provided that the goods have not been worked, repaired or used after importation  except where 

such use was indispensable to discover the defects or non-conformity with the specifications; 

(b)  the goods are identified to the satisfaction of the Assistant Commissioner of Customs or Deputy 

Commissioner of Customs as the goods which were imported; 

(c)  the importer does not claim drawback under any other provisions of this Act; and 

(d)  (i)    the goods are exported; or 

      (ii)   the importer relinquishes his title to the goods and abandons them to customs; or 

(iii)  such  goods  are  destroyed  or  rendered  commercially  valueless  in  the  presence  of  the      

proper officer,  

1.  Ins. by Act 33 of 2009, s. 85 (w.e.f. 19-8-2009). 

29 

 
                                                           
in such manner as may be prescribed and within a period not exceeding thirty days from the date on which 
the proper officer makes an order for the clearance of imported goods for home consumption under section 
47: 

Provided that  the  period  of  thirty  days  may,  on  sufficient  cause  being  shown,  be  extended  by  the 
1[Principal  Commissioner  of  Customs  or  Commissioner  of  Customs]  for  a  period  not  exceeding  three 
months: 

Provided further  that  nothing  contained  in  this  section  shall  apply  to  the  goods  regarding  which  an 

offence appears to have been committed under this Act or any other law for the time being in force. 

(2) An application for refund of duty shall be made before the expiry of six months from the relevant 

date in such form and in such manner as may be prescribed. 

 Explanation.—For the purposes of this sub-section, “relevant date” means, — 

(a)   in cases where the goods are exported out of India, the date on which the proper officer makes 

an order permitting clearance and loading of goods for exportation under section 51; 

(b)  in cases where the title to the goods is relinquished, the date of such relinquishment; 

(c)  in cases where the goods are destroyed or rendered commercially valueless, the date of such 

destruction or rendering of goods commercially valueless. 

(3)  No  refund  under  sub-section  (1)  shall  be  allowed  in  respect  of  perishable  goods  and  goods 

which have exceeded their shelf life or their recommended storage-before-use period. 

(4) The Board may, by notification in the Official Gazette, specify any other condition subject to 

which the refund under sub-section (1) may be allowed.] 

2[27. Claim for refund of duty.—3[(1) Any person claiming refund of any duty or interest, — 

(a) paid by him; or 

(b) borne by him, 

may make an application in such form and manner as may be prescribed for such refund to the Assistant 
Commissioner of Customs or Deputy Commissioner of Customs, before the expiry of one year, from the 
date of payment of such duty or interest: 

Provided that where an application for refund has been made before the date on which the Finance Bill, 
2011 receives the assent of the President, such application shall be deemed to have been made under sub-
section (1), as it stood before the date on which the Finance Bill, 2011 receives the assent of the President 
and the same shall be dealt with in accordance with the provisions of sub-section (2): 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014).  
2. Subs. by Act 40 of 1991, s. 10, for section 27 (w.e.f. 20-9-1991).  
3. Subs. by Act 8 of 2011, s. 41, for sub-section (1) (w.e.f. 8-4-2011).  

30 

 
                                                           
 Provided further that the limitation of one year shall not apply where any duty or interest has been paid 

under protest. 

1[Provided also that where the amount of refund claimed is less than rupees one hundred, the same shall 

not be refunded.] 

Explanation.—For the purposes of this sub-section, “the date of payment of duty or interest” in relation 
to a person, other than the importer, shall be construed as “the date of purchase of goods” by such person. 

 (1A)  The  application  under  sub-section  (1)  shall  be  accompanied  by  such  documentary  or  other 
evidence (including the documents referred to in section 28C) as the applicant may furnish to establish that 
the amount of duty or interest, in relation to which such refund is claimed was collected from, or paid by 
him and the incidence of such duty or interest, has not been passed on by him to any other person. 

 (1B) Save as otherwise provided in this section, the period of limitation of one year shall be computed 

in the following manner, namely:— 

 (a) in the case of goods which are exempt from payment of duty by a special order issued under 
sub-section (2) of section 25, the limitation of one year shall be computed from the date of issue of such 
order; 

(b) where the duty becomes refundable as a consequence of any judgment, decree, order or direction 
of the appellate authority, Appellate Tribunal or any court, the limitation of one year shall be computed 
from the date of such judgment, decree, order or direction; 

(c) where  any  duty  is  paid  provisionally  under  section  18,  the  limitation  of  one  year  shall  be 
computed from the date of adjustment of duty after the final assessment thereof or in case of             re-
assessment, from the date of such re-assessment.] 

 (2)   If,  on  receipt  of  any  such  application,  the 2[Assistant  Commissioner  of  Customs  or  Deputy 
Commissioner of Customs] is satisfied that the whole or any part of the 3[duty and interest, if any, paid on 
such  duty]  paid  by  the  applicant  is  refundable,  he  may  make  an  order  accordingly  and  the  amount  so 
determined shall be credited to the Fund: 

 Provided that  the  amount  of 3[duty  and  interest,  if  any,  paid  on  such  duty]  as  determined  by 
the 2[Assistant  Commissioner  of  Customs  or  Deputy  Commissioner  of  Customs]  under  the  foregoing 
provisions of this sub-section shall, instead of being credited to the Fund, be paid to the applicant, if such 
amount is relatable to — 

 (a) the 3[duty and interest, if any, paid on such duty] paid by the importer, 4[or the exporter, as the case 
may be] if he had not passed on the incidence of such 3[duty and interest, if any, paid on such duty] to any 
other person; 

(b)  the 3[duty and interest, if any, paid on such duty] on imports made by an individual for his personal 

use; 

1.  Ins. by Act 17 of 2013, s. 65 (w.e.f. 10-5-2013). 
2. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
3. Subs. by Act 55 of 1991, s. 2, for “duty” (w.e.f. 23-12-1991).  
4. Ins. by Act 32 of 2003, s. 108 (w.e.f. 14-5-2003).  

31 

 
                                                           
(c)  the 1[duty and interest, if any, paid on such duty] borne by the buyer, if he had not passed on the 

incidence of such 1[duty and interest, if any, paid on such duty] to any other person; 

(d)  the export duty as specified in section 26; 

(e)  drawback of duty payable under sections 74 and 75; 

(f)   the 1[duty and interest, if any, paid on such duty] borne by any other such class of applicants as the 

Central Government may, by notification in the Official Gazette, specify; 

2[(g) the duty paid in excess by the importer before an order permitting clearance of goods for home 

consumption is made where— 

(i) such excess payment of duty is evident from the bill of entry in the case of self-assessed bill of 

entry; or 

(ii) the duty actually payable is reflected in the reassessed bill of entry in the case of reassessment:] 

Provided further that no notification under clause (f) of the first proviso shall be issued unless in the 
opinion of the Central Government the incidence of 1[duty and interest, if any, paid on such duty] has not 
been passed on by the persons concerned to any other person. 

(3)  Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of 
the Appellate Tribunal, 3[National Tax Tribunal] or any Court or in any other provision of this Act or the 
regulations made thereunder or any other law for the time being in force, no refund shall be made except 
as provided in sub-section (2). 

(4)   Every notification under clause (f) of the first proviso to sub-section (2) shall be laid before each 
House of Parliament, if it is sitting, as soon as may be after the issue of the notification, and, if it is  not 
sitting,  within  seven  days  of  its  re-assembly,  and  the  Central  Government  shall  seek  the  approval  of 
Parliament to the notification by a resolution moved within a period of fifteen days beginning with the day 
on which the notification is so laid before the House of the People and if Parliament makes any modification 
in the notification or directs that the notification should cease to have effect, the notification shall thereafter 
have effect only in such modified form or be of no effect, as the case may be, but without prejudice to the 
validity of anything previously done thereunder. 

 (5)  For the removal of doubts, it is hereby declared that any notification issued under clause (f) of the 
first proviso to sub-section (2), including any such notification approved or modified under sub-section (4), 
may be rescinded by the Central Government at any time by notification in the Official Gazette.] 

 4[27A. Interest on delayed refunds.—If any duty ordered to be refunded under sub-section (2) of 
section 27 to an applicant is not refunded within three months from the date of receipt of application under 
sub-section (1) of that section, there shall be paid to that applicant interest at such rate, 5[ not below five 
per  cent.]  and  not  exceeding  thirty  per  cent.  per  annum  as  is  for  the  time  being  fixed 6[by  the  Central 
Government  by  Notification  in  the  Official  Gazette],  on  such  duty  from  the  date  immediately  after  the 
expiry of three months from the date of receipt of such application till the date of refund of such duty: 

1. Subs. by Act 55 of 1991, s. 2, for “duty” (w.e.f. 23-12-1991). 
2. Ins. by Act 7 of 2017, s. 92 (w.e.f. 31-3-2017). 
3. Ins. by  Act 49 of 2005, s. 30 and the Schedule, Part VI (w.e.f. 28-12-2005). This amendment has been struck down by the 

Supreme Court’s order dated 25th September, 2014 in the Madras Bar Association Vs Union of India. 

4. Ins. by Act 22 of 1995, s. 55 (w.e.f. 26-5-1995). 
5. Subs. by Act 14 of 2001, s. 102, for “not below ten per cent.” (w.e.f. 11-5-2001). 
6. Subs. by Act 10 of 2000, s. 78, for “by the Board” (w.e.f. 12-5-2000). 

32 

 
                                                           
Provided that where any duty, ordered to be refunded under sub-section (2) of section 27 in respect of 
an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 
receives the assent of the President, is not refunded within three months from such date, there shall be paid 
to the applicant interest under this section from the date immediately after three months from such date, till 
the date of refund of such duty. 

Explanation.—Where  any  order  of  refund  is  made  by  the  Commissioner  (Appeals),  Appellate 
Tribunal 1[,  National  Tax  Tribunal]  or  any  court  against  an  order  of  the 2[Assistant  Commissioner  of 
Customs or Deputy Commissioner of Customs] under sub-section (2) of section 27, the order passed by the 
Commissioner (Appeals), Appellate Tribunal 1[, National Tax Tribunal] Tribunal or as the case may be, by 
the court shall be deemed to be an order passed under that sub-section for the purposes of this section.] 

3[28.   Recovery of 4[duties not levied or not paid or short-levied or short-paid] or erroneously 
refunded.—(1)  Where  any 5[duty  has  not  been  levied  or  not  paid  or  short-levied  or  short-paid]  or 
erroneously refunded, or any interest payable has not been paid, part-paid or erroneously refunded, for any 
reason other than the reasons of collusion or any wilful mis-statement or suppression of facts, — 

(a) the proper officer shall, within 6[two years] from the relevant date, serve notice on the person 

chargeable  with  the  duty  or  interest  which  has  not  been  so  levied 7[or  paid]  or  which  has  been                   
short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show 
cause why he should not pay the amount specified in the notice: 

8[Provided that before issuing notice, the proper officer shall hold pre-notice consultation with the 

person chargeable with duty or interest in such manner as may be prescribed;] 

(b)  the  person  chargeable  with  the  duty  or  interest,  may  pay  before  service  of  notice  under            

clause (a) on the basis of, — 

(i) his own ascertainment of such duty; or 

(ii)  the duty ascertained by the proper officer, 

the  amount  of  duty  along  with  the  interest  payable  thereon  under  section  28AA  or  the   amount  of                 
interest which has not been so paid or part-paid. 

9[Provided that the proper officer shall not serve such show cause notice, where the amount involved 

is less than rupees one hundred.] 

 (2) The person who has paid the duty along with interest or amount of interest under clause (b) of           

sub-section  (1)  shall  inform  the  proper  officer  of  such  payment  in  writing,  who,  on  receipt  of  such 
information, shall not serve any notice under clause (a) of that sub-section in respect of the duty or interest 
so paid or any penalty leviable under the provisions of this Act or the rules made thereunder in respect of 
such duty or interest: 

1. Ins. by  Act 49 of 2005, s. 30 and the Schedule, Part VI (w.e.f. 28-12-2005). This amendment has been struck down by the 

Supreme Court’s order dated 25th September, 2014 in the Madras Bar Association Vs Union of India. 

2. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
3. Subs. by Act 8 of 2011, s. 42, for section 28 (w.e.f. 8-4-2011).  
4. Subs. by Act 28 of 2016, s. 120, for “duties not levied or short- levied” (w.e.f. 14-5-2016). 
5. Subs. by s. 120, ibid., for “duty has not been levied or has been short-levied” (w.e.f. 14-5-2016).  
6. Subs. by s. 120, ibid., for “one year” (w.e.f. 14-5-2016). 
7. Ins. by s. 120, ibid. (w.e.f. 14-5-2016). 
8. Ins. by Act 13 of 2018, s. 63 (w.e.f. 28-3-2018). 
9. The proviso ins. by Act 17 of 2013, s. 66 (w.e.f. 10-5-2013). 

33 

 
                                                           
1[Provided that where notice under clause (a) of sub-section (1) has been served and the proper officer 
is of the opinion that the amount of duty along with interest payable thereon under section 28AA or the 
amount of interest, as the case may be, as specified in the notice, has been paid in full within thirty days 
from the date of receipt of the notice, no penalty shall be levied and the proceedings against such person or 
other persons to whom the said notice is served under clause (a) of sub-section (1) shall be deemed to be 
concluded.] 

 (3) Where the proper officer is of the opinion that the amount paid under clause (b) of sub-section (1) 
falls short of the amount actually payable, then, he shall proceed to issue the notice as provided for in clause 
(a) of that sub-section in respect of such amount which falls short of the amount actually payable in the 
manner specified under that sub-section and the period of 2[two years] shall be computed from the date of 
receipt of information under sub-section (2). 

 (4)  Where  any  duty  has  not  been 3[levied  or  not  paid  or  has  been  short-levied  or  short-paid] 
or erroneously refunded, or interest payable has not been paid, part-paid or erroneously refunded, by reason 
of,—                                                                                                                                         

(a)  collusion; or 

(b)  any wilful mis-statement; or 

(c)   suppression of facts, 

by the importer or the exporter or the agent or employee of the importer or exporter, the proper officer shall, 
within five years from the relevant date, serve notice on the person chargeable with duty or interest which 
has not been 4[so levied or not paid] or which has been so short-levied or short-paid or to whom the refund 
has erroneously been made, requiring him to show cause why he should not pay the amount specified in 
the notice. 

 (5) Where any 5[duty has not been levied or not paid or  has been short-levied or short paid] or the 
interest has not been charged or has been part-paid or the duty or interest has been erroneously refunded by 
reason of collusion or any wilful mis-statement or suppression of facts by the importer or the exporter or 
the  agent  or  the  employee  of  the  importer  or  the  exporter,  to  whom  a  notice  has  been  served  under                  
sub- section (4) by the proper officer, such person may pay the duty in full or in part, as may be accepted 
by him, and the interest payable thereon under section 28AA and the penalty equal to 6[fifteen per cent.] of 
the duty specified in the notice or the duty so accepted by that person, within thirty days of the receipt of 
the notice and inform the proper officer of such payment in writing. 

 (6) Where the importer or the exporter or the agent or the employee of the importer or the exporter, as 
the  case  may  be,  has  paid duty  with interest and  penalty  under  sub-section (5),  the  proper  officer  shall 
determine the amount of duty or interest and on determination, if the proper officer is of the opinion —     

(i) that the duty with interest and penalty has been paid in full, then, the proceedings in respect of 
such person or other persons to whom the notice is served under sub-section (1) or sub- section (4), 

1. Ins. by Act 20 of 2015, s. 82 (w.e.f. 14-5-2015) 
2. Subs. by Act 28 of 2016, s. 120, for “one year” (w.e.f. 14-5-2016). 
3. Subs. by s. 120, ibid., for “levied or has been short levied” (w.e.f. 14-5-2016). 
4. Subs. by s. 120, ibid., for “so levied” (w.e.f. 14-5-2016). 
5. Subs by s. 120, ibid., for “duty has not been levied or has been short levied” (w.e.f. 14-5-2016). 
6. Subs. by Act 20 of 2015, s. 82, for “twenty-five per cent.” (w.e.f. 14-5-2015). 

34 

 
                                                           
shall, without prejudice to the provisions of sections 135, 135A and 140 be deemed to be conclusive as 
to the matters stated therein; or 

(ii) that the  duty  with interest  and  penalty  that  has  been  paid falls  short  of  the amount  actually 

payable,  then,  the  proper  officer  shall  proceed  to  issue  the  notice  as  provided  for  in  clause  (a)  of             
sub-section (1) in respect of such amount which falls short of the amount actually payable in the manner 
specified  under  that  sub-section  and  the  period  of 1[two  years]  shall  be  computed  from  the  date  of 
receipt of information under sub-section (5). 

 (7)  In  computing  the  period  of 1[two  years]  referred  to  in  clause  (a)  of  sub-section  (1)   or  five 
years  referred to in sub-section (4), the period during which there was any stay by an order of a court or 
tribunal in respect of payment of such duty or interest shall be excluded. 

2[(7A)  Save  as  otherwise  provided  in  clause  (a)  of  sub-section  (1)  or  in  sub-section  (4),  the  proper 
officer  may  issue  a  supplementary  notice  under  such  circumstances  and  in  such  manner  as  may  be 
prescribed, and the provisions of this section shall apply to such supplementary notice as if it was issued 
under the said sub-section (1) or sub-section (4).] 

 (8) The proper officer shall, after allowing the concerned person an opportunity of being  heard and 
after considering the representation, if any, made by such person, determine the amount of duty or interest 
due from such person not being in excess of the amount specified in the notice.                         

 (9)   The proper officer shall determine the amount of duty or interest under sub-section (8),—   

 (a) within six months from the date of notice, 3*** in respect of cases falling under clause (a) of 

sub- section (1); 

 (b) within one year from the date of notice, 3*** in respect of cases falling under sub-section (4). 

2[Provided that where the proper officer fails to so determine within the specified period, any officer 
senior in rank to the proper officer may, having regard to the circumstances under which the proper officer 
was prevented from determining the amount of duty or interest under sub-section (8), extend the period 
specified in clause (a) to a further period of six months and the period specified in clause (b) to a further 
period of one year: 

Provided further that  where  the  proper  officer  fails to  determine  within such extended  period, such 

proceeding shall be deemed to have concluded as if no notice had been issued;] 

2[(9A)  Notwithstanding  anything  contained in sub-section (9),  where the  proper  officer  is  unable  to 

determine the amount of duty or interest under sub-section (8) for the reason that— 

(a)  an  appeal  in  a  similar  matter  of  the  same  person or  any  other  person is  pending  before  the 

Appellate Tribunal or the High Court or the Supreme Court; or 

1. Subs. by Act 28 of 2016, s. 120 for “one year” (w.e.f. 14-5-2016).  
2. Ins. by Act 13 of 2018, s. 63 (w.e.f. 28-3-2018). 
3. The words “where it is possible to do so” omitted by s. 63, ibid. (w.e.f. 28-3-2018). 

35 

 
 
                                                           
(b) an interim order of stay has been issued by the Appellate Tribunal or the High Court or the 

Supreme Court; or 

(c) the Board has, in a similar matter, issued specific direction or order to keep such matter pending; 

or 

(d) the Settlement Commission has admitted an application made by the person concerned, 

the proper officer shall inform the person concerned the reason for non-determination of the amount of duty 
or interest under sub-section (8) and in such case, the time specified in sub-section (9) shall apply not from 
the date of notice, but from the date when such reason ceases to exist.] 

 (10) Where an order determining the duty is passed by the proper officer under this section, the person 
liable to pay the said duty shall pay the amount so determined along with the interest due on such amount 
whether or not the amount of interest is specified separately. 

1[(10A) Notwithstanding anything contained in this Act, where an order for refund under sub-section (2) of 
section 27 is modified in any appeal and the amount of refund so determined is less than the amount refunded 
under said sub-section, the excess amount so refunded shall be recovered along with interest thereon at the rate 
fixed by the Central Government under section 28AA, from the date of refund up to the date of recovery, as a 
sum due to the Government. 

(10B) A notice issued under sub-section (4) shall be deemed to have been issued under sub-section (1), if 
such notice demanding duty is held not sustainable in any proceeding under this Act, including at any stage of 
appeal, for the reason that the charges of collusion or any wilful mis-statement or suppression of facts to evade 
duty has not been established against the person to whom such notice was issued and the amount of duty and the 
interest thereon shall be computed accordingly.] 

tribunal  or  other  authority,  all  persons  appointed  as  officers  of  Customs  under                                         

2[(11) Notwithstanding anything to the contrary contained in any judgment, decree or order of any court 
law, 

of 
sub-section (1) of section 4 before the 6th day of July, 2011 shall be deemed to have and always had the 
power of assessment under section 17 and shall be deemed to have been and always had been the proper 
officers for the purposes of this section.] 

 Explanation 1.—For the purposes of this section, “relevant date” means, —   

(a) in a case where duty is 3[not levied or not paid or short-levied or short-paid], or interest is not 

charged, the date on which the proper officer makes an order for the clearance of goods; 

(b) in a case where duty is provisionally assessed under section 18, the date of adjustment of duty 

after the final assessment thereof or re-assessment, as the case may be; 

(c) in a case where duty or interest has been erroneously refunded, the date of refund; 

(d) in any other case, the date of payment of duty or interest. 

Explanation  2.—For  the  removal  of  doubts,  it  is  hereby  declared  that  any  non-levy,  short-levy  or 
erroneous refund before the date on which the Finance Bill, 2011 receives the assent of the President, shall 
continue to be governed by the provisions of section 28 as it stood immediately before the date on which 
such assent is received.] 

1. Ins. by Act 13 of 2018, s. 63 (w.e.f. 28-3-2018). 
2. Ins. by Act 14 of 2011, s. 2 (w.e.f. 16-9-2011).  
3. Subs. by Act 28 of 2016, s. 120, for “not levied” (w.e.f. 14-5-2016). 

36 

 
                                                           
 1[Explanation 3.—For the removal of doubts, it is hereby declared that the proceedings in respect of 
any case of non-levy, short-levy, non-payment, short-payment or erroneous refund where show cause notice 
has been issued under sub-section (1) or sub-section (4), as the case may be, but an order determining duty 
under sub-section (8) has not been passed before the date on which the Finance Bill, 2015 receives the 
assent of the President, shall, without prejudice to the provisions of sections 135, 135A and 140, as may be 
applicable, be deemed to be concluded, if the payment of duty, interest and penalty under the proviso to 
sub-section (2) or under sub-section (5), as the case may be, is made in full within thirty days from the date 
on which such assent is received.] 

2[Explanation 4.— For the removal of doubts, it is hereby declared that notwithstanding anything to 
the contrary contained in any judgment, decree or order of the Appellate Tribunal or any Court or in any 
other provision of this Act or the rules or regulations made thereunder, or in any other law for the time 
being in force, in cases where notice has been issued for non-levy, short-levy, non-payment, short-payment 
or erroneous refund, prior to the 29th day of March, 2018, being the date of commencement of the Finance 
Act, 2018 (13 of 2018), such notice shall continue to be governed by the provisions of section 28 as it stood 
immediately before such date.] 

 3[28A.   Power not  to  recover  duties  not  levied  or  short-levied  as  a  result  of  general  
practice.—4[(1)]  Notwithstanding  anything  contained  in  this  Act,  if  the  Central  Government  is  
satisfied—   

(a) that a practice was, or is, generally prevalent regarding levy of duty (including non-levy thereof) 

on any goods imported into, or exported from, India; and 

(b) that such goods were, or are, liable —  

(i)  to duty, in cases where according to the said practice the duty was not, or is not being, 

levied, or 

(ii) to a higher amount of duty than what was, or is being, levied, according to the said practice, 

then, the Central Government may, by notification in the Official Gazette, direct that the whole of the duty 
payable on such goods, or, as the case may be, the duty in excess of that payable on such goods, but for the 
said practice, shall not be required to be paid in respect of the goods on which the duty was not, or is not 
being, levied, or was, or is being, short-levied, in accordance with the said practice.] 

5[(2)   Where any notification under sub-section (1) in respect of any goods has been issued, the whole 
of the duty paid on such goods, or, as the case may be, the duty paid in excess of that payable on such 
goods, which would not have been paid if the said notification had been in force, shall be dealt with in 
accordance with the provisions of sub-section (2) of section 27: 

 Provided that the person claiming the refund of such duty or, as the case may be, excess duty, makes 
an  application  in  this  behalf  to  the 6[Assistant  Commissioner  of  Customs  or  Deputy  Commissioner  of 
Customs], in the form referred to in sub-section (1) of section 27, before the expiry of six months from the 
date of issue of the said notification.] 

1. Ins. by Act 20 of 2015, s. 82 (w.e.f. 14-5-2015). 
2. Subs. by Act 12 of 2020, s. 108, for Explanation 4 (w.e.f. 29-3-2018). 
3. Ins. by Act 25 of 1978 s. 7 (w.e.f. 1-7-1978).  
4. Section 28A renumbered as sub-section (1) thereof by Act 29 of 1988, s. 3 (w.e.f. 1-7-1988). 
5. Subs. by Act 40 of 1991, s. 11, for sub-section (2) (w.e.f. 20-9-1991). 
6. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 

37 

 
                                                           
1[28AA.   Interest  on  delayed  payment  of  duty—(1)  Notwithstanding  anything  contained  in  any 
judgment,  decree,  order  or  direction  of  any  court,  Appellate  Tribunal  or  any  authority  or  in  any  other 
provision of this Act or the rules made thereunder, the person, who is liable to pay duty in accordance with 
the provisions of section 28, shall, in addition to such duty, be liable to pay interest, if any, at the rate fixed 
under sub-section (2), whether such payment is made voluntarily or after determination of the duty under 
that section. 

(2) Interest at such rate not below ten per cent. and not exceeding thirty-six per cent. per annum, as the 
Central Government may, by notification in the Official Gazette, fix, shall be paid by the person liable to 
pay  duty  in  terms  of  section  28  and  such  interest  shall  be  calculated  from  the  first  day  of  the  month 
succeeding the month in which the duty ought to have been paid or from the date of such erroneous refund, 
as the case may be, up to the date of payment of such duty. 

(3) Notwithstanding anything contained in sub-section (1), no interest shall be payable where,— 

(a) the duty becomes payable consequent to the issue of an order, instruction or direction by the 

Board under section 151A; and 

(b) such amount of duty is voluntarily paid in full, within forty-five days from the date of issue of 
such order, instruction or direction, without reserving any right to appeal against the said payment at 
any subsequent stage of such payment.] 

2[28AAA. Recovery of duties in certain cases.—(1) Where an instrument issued to a person has been 

obtained by him by means of — 

(a) collusion; or 

(b) wilful mis-statement; or 

(c) suppression of facts, 

for  the  purposes  of  this  Act  or  the  Foreign  Trade  (Development  and  Regulation)  Act,  1992                                           
(22 of 1992), 3[or any other law, or any scheme of the Central Government, for the time being in force, by 
such person] or his agent or employee and such instrument is utilised under the provisions of this Act or 
the rules  4[or regulations] made or notifications issued thereunder, by a person other than the person to 
whom the instrument was issued, the duty relatable to such utilisation of instrument shall be deemed never 
to  have  been  exempted  or debited  and  such  duty  shall  be  recovered  from  the  person  to  whom  the  said 
instrument was issued: 

Provided that the action relating to recovery of duty under this section against the person to whom the 

instrument was issued shall be without prejudice to an action against the importer under section 28. 

Explanation 1.— For the purposes of this sub-section, “instrument” means any scrip or authorisation or 
licence or certificate or such other document, by whatever name called, issued under the Foreign Trade 
(Development  and  Regulation)  Act, 1992 (22  of  1992),  5[or  duty  credit issued  under section  51B,  with 
respect to] a reward or incentive scheme or duty exemption scheme or duty remission scheme or such other 

1. Subs. by Act 8 of 2011, s. 43, for section 28AA and section 28AB (w.e.f. 8-4-2011). 
2. Ins. by Act 23 of 2012, s. 122 (w.e.f. 28-5-2018). 
3. Subs. by Act 12 of 2020, s. 109, for “by such person” (w.e.f. 27-3-2020) 
4. Ins. by s. 109, ibid. (w.e.f. 27-3-2020). 
5. Subs. by Act 12 of 2020, s. 109, for “with respect to” (w.e.f. 27-3-2020). 

38 

 
                                                           
scheme bestowing financial or fiscal benefits, which may be utilised under the provisions of this Act or the 
rules made or notifications issued thereunder. 

Explanation  2.—The  provisions  of  this  sub-section  shall  apply  to  any  utilisation  of  instrument  so 
obtained by the person referred to in this sub-section on or after the date on which the Finance Bill, 2012 
receives the assent of the President, whether or not such instrument is issued to him prior to the date of the 
assent. 

(2)  Where  the  duty  becomes  recoverable  in  accordance  with  the  provisions  of  sub-section  (1),  the 
person from whom such duty is to be recovered, shall, in addition to such duty, be liable to pay interest at 
the rate fixed by the Central Government under section 28AA and the amount of such interest shall be 
calculated for the period beginning from the date of utilisation of the instrument till the date of recovery of 
such duty. 

(3)  For  the  purposes  of  recovery  under  sub-section (2),  the  proper  officer  shall  serve  notice  on  the 
person to whom the instrument was issued requiring him to show cause, within a period of thirty days from 
the date of receipt of the notice, as to why the amount specified in the notice (excluding the interest) should 
not be recovered from him, and after giving that person an opportunity of being heard, and after considering 
the representation, if any, made by such person, determine the amount of duty or interest or both to be 
recovered from such person, not being in excess of the amount specified in the notice, and pass order to 
recover the amount of duty or interest or both and the person to whom the instrument was issued shall repay 
the amount so specified in the notice within a period of thirty days from the date of receipt of the said order, 
along with the interest due on such amount, whether or not the amount of interest is specified separately. 

(4) Where an order determining the duty has been passed under section 28, no order to recover that 

duty shall be passed under this section. 

(5) Where the person referred to in sub-section (3) fails to repay the amount within the period of thirty 

days  specified  therein,  it  shall  be  recovered  in  the  manner  laid  down  in  sub-section  (1)  of                                      
section 142.] 

1[28B.  Duties  collected  from  the  buyer  to  be  deposited  with  the  Central  Government.—(1) 
Notwithstanding  anything  to  the  contrary  contained  in  any  order  or  direction  of  the  Appellate  Tribunal  
2[,  National  Tax  Tribunal]  or  any  Court  or  in  any  other  provision  of  this  Act  or  the  regulations 
made thereunder, 3[every person who is liable to pay duty under this Act and has collected any amount in 
excess of the duty assessed or determined or paid on any goods under this Act from the buyer of such goods] 
in any manner as representing duty of customs, shall forthwith pay the amount so collected to the credit of 
the Central Government. 

 4[(1A)   Every person who has collected any amount in excess of the duty assessed or determined or 
paid on any goods or has collected any amount as representing duty of customs on any goods which are 
wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the 
amount so collected to the credit of the Central Government.] 

1. Ins. by Act 40 of 1991, s. 12 (w.e.f. 20-9-1991). 
2. Ins. by  Act 49 of 2005, s. 30 and the Schedule, Part VI (w.e.f. 28-12-2005). This amendment has been struck down by the 

Supreme Court’s order dated 25th September, 2014 in the Madras Bar Association Vs Union of India. 

3.  Subs.  by  Act  10  of  2000,  s.  82  for  “every  person  who  has  collected  any  amount  from  the  buyer  of  any  goods”  

(w.e.f. 20-9-1991). 

4. Ins. by Act 18 of 2008, s. 68 (w.e.f. 10-5-2008). 

39 

 
                                                           
1[(2) Where  any  amount  is  required  to  be  paid  to  the  credit  of  the  Central  Government  under  
2[sub-section (1) or sub-section (1A), as the case may be,] and which has not been so paid, the proper officer 
may serve on the person liable to pay such amount, a notice requiring him to show cause why he should 
not pay the amount, as specified in the notice to the credit of the Central Government. 

(3)  The proper officer shall, after considering the representation, if any, made by the person on whom 
the notice is served under sub-section (2), determine the amount due from such person (not being in excess 
of the amount specified in the notice) and thereupon such person shall pay the amount so determined. 

(4) The  amount  paid  to  the  credit  of  the  Central  Government  under 3[sub-section  (1)  or                                       

sub-section (1A) or sub-section (3) as the case may be,] shall be adjusted against the duty payable by the 
person on finalisation of assessment or any other proceeding for determination of the duty relating to the 
goods referred to in 4[sub-section (1) and sub-section (1A).] 

(5) Where  any  surplus  is  left  after  the  adjustment  made  under  sub-section  (4),  the  amount  of  such 
surplus shall either be credited to the Fund or, as the case may be, refunded to the person who has borne 
the incidence of such amount, in accordance with the provisions of section 27 and such person may make 
an application under that section in such cases within six months from the date of the public notice to be 
issued by the Assistant Commissioner of Customs for the refund of such surplus amount.] 

 5[28BA. Provisional  attachment  to  protect  revenue  in  certain  cases.—(1)  Where,  during  the 
pendency of any proceeding under section 28 6[or section 28AAA or section 28B], the proper officer is of 
the opinion that for the purpose of protecting the interests of revenue, it is necessary so to do, he may, with 
the previous approval of the 7[Principal Commissioner of Customs or Commissioner of Customs], by order 
in  writing,  attach  provisionally  any  property  belonging  to  the  person  on  whom  notice  is  served 
under       8[sub-section  (1)  or  sub-section  (4)  of  section  28] 9[or  sub-section  (3)  of  section  28AAA  or                                           
sub-section (2) of section 28B], as the case may be, in accordance with the rules made in this behalf under 
section 142. 

 (2)   Every such provisional attachment shall cease to have effect after the expiry of a period of six 

months from the date of the order made under sub-section (1): 

Provided that the 10[Principal  Chief  Commissioner  of  Customs  or  Chief  Commissioner  of  Customs] 
may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as 
he thinks fit, so, however, that the total period of extension shall not in any case exceed two years: 

Provided further that where an application for settlement of case under section 127B is made to the 

Settlement Commission, the period commencing from the date on which such application is made and 

1. Subs. by Act 10 of 2000, s. 82, for sub-section (2) (w.e.f. 20-9-1991).  
2. Subs. Act 18 of 2008, s. 68, for “sub-section (1)” ( w.e.f. 10-5-2008). 
3. Subs. by s. 68, ibid., for “sub-section (1) or sub-section (3)” (w.e.f. 10-5-2008) 
4. Subs. by s. 68, ibid., for “sub-section (1)” (w.e.f. 10-5-2008). 
5. Ins. by Act 29 of 2006, s. 23 (w.e.f. 13-7-2006).  
6. Subs. by Act 23 of 2012, s. 123, for “or section 28B” (w.e.f. 28-5-2012). 
7.  Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-08-2014). 
8.  Subs. by Act 17 of 2013, s. 67, for “sub-section (1) of section 28” ( w.e.f. 10-5-2013). 
9. Subs. by Act 23 of 2012, s. 123, for “or sub-section (2) of section 28B” (w.e.f. 28-5-2012). 
10. Subs. by Act 25 of 2014, section 78, for “Chief Commissioner of Customs” (w.e.f. 6-8-2014). 

40 

 
                                                           
ending with the date on which an order under sub-section (1) of section 127C is made shall be excluded 
from the period specified in the preceding proviso.]  

1[28. Time limit for completion of certain actions.—(1) Any inquiry or investigation under this Act, 
culminating  in  the  issuance  of  a  notice  under  sub-section  (1)  or  sub-section  (4)  of  section  28  shall  be 
completed by issuing such notice, within a period of two years from the date of initiation of audit, search, 
seizure or summons, as the case may be: 

Provided  that  the  Principal  Commissioner  of  Customs  or  the  Commissioner  of  Customs  may,  on 
sufficient cause being shown and for reasons to be recorded in writing, extend the said period to a further 
period of one year. 

(2) For computing the period under sub-section (1), the period during which stay was granted by an 
order of a court or tribunal, or the period for seeking information from an overseas authority through a legal 
process, shall be excluded. 

Explanation.—For the removal of doubts, it is hereby declared that nothing contained in this section 
shall apply to any such proceeding initiated before the date on which the Finance Bill, 2021 receives  the 
assent of the President.] 

2[CHAPTER VA 

INDICATING AMOUNT OF DUTY IN THE PRICE OF GOODS, ETC., FOR PURPOSE OF REFUND 

28C. Price  of  goods  to  indicate  the  amount  of  duty  paid  thereon.—Notwithstanding  anything 
contained in this Act or any other law for the time being in force, every person who is liable to pay duty on 
any goods shall, at the time of clearance of the goods, prominently indicate in all the documents relating to 
assessment, sales invoice, and other like documents, the amount of such duty which will form part of the 
price at which such goods are to be sold. 

28D. Presumption that incidence of duty has been passed on to the buyer.—Every person who has 
paid the duty on any goods under this Act shall, unless the contrary is proved by him, be deemed to have 
passed on the full incidence of such duty to the buyer of such goods.] 

3[CHAPTER VAA 

ADMINISTRATION OF RULES OF ORIGIN UNDER TRADE AGREEMENT 

28DA. Procedure regarding claim of preferential rate of duty.—(1) An importer making claim for 

preferential rate of duty, in terms of any trade agreement, shall,–– 

(i) make a declaration that goods qualify as originating goods for preferential rate of duty under 

such agreement; 

(ii)  possess  sufficient  information  as  regards  the  manner  in  which  country  of  origin  criteria, 
including the regional value content and product specific criteria, specified in the rules of origin in the 
trade agreement, are satisfied; 

(iii) furnish such information in such manner as may be provided by rules; 

(iv) exercise reasonable care as to the accuracy and truthfulness of the information furnished. 

(2) The fact that the importer has submitted a certificate of origin issued by an Issuing Authority shall 

not absolve the importer of the responsibility to exercise reasonable care.  

1. Ins. by Act 13 of 2021, s. 92 (w.e.f. 28-3-2021). 
2. Ins. by Act 40 of 1991, s. 13 (w.e.f. 20-9-1991). 
3. Ins. by Act 12 of 2020, s. 110 (w.e.f. 27-3-2020). 

41 

 
                                                           
(3) Where the proper officer has reasons to believe that country of origin criteria has not been met, he 
may require the importer to furnish further information, consistent with the trade agreement, in such manner 
as may be provided by rules. 

(4) Where importer fails to provide the requisite information for any reason, the proper officer may,– 

(i) cause further verification consistent with the trade agreement in such manner as may be provided 

by rules; 

(ii) pending verification, temporarily suspend the preferential tariff treatment to such goods: 

Provided that on the basis of the information furnished by the importer or the information available 
with him or on the relinquishment of the claim for preferential rate of duty by the importer, the Principal 
Commissioner of Customs or the Commissioner of Customs may, for reasons to be recorded in writing, 
disallow the claim for preferential rate of duty, without further verification. 

(5) Where the preferential rate of duty is suspended under sub-section (4), the proper officer may, on 
the request of the importer, release the goods subject to furnishing by the importer a security amount equal 
to the difference between the duty provisionally assessed under section 18 and the preferential duty claimed: 

Provided that the Principal Commissioner of Customs or the Commissioner of Customs may, instead 
of  security,  require  the  importer  to  deposit  the  differential  duty  amount  in  the  ledger  maintained  under 
section 51A. 

(6)  Upon  temporary  suspension  of  preferential  tariff  treatment,  the  proper  officer  shall  inform  the 
Issuing Authority of reasons for suspension of preferential tariff treatment, and seek specific information 
as  may  be  necessary  to  determine the  origin  of  goods  within such time  and in such  manner as  may  be 
provided by rules. 

(7) Where, subsequently, the Issuing Authority or exporter or producer, as the case may be, furnishes 
the  specific  information  within  the  specified  time,  the  proper  officer  may,  on  being  satisfied  with  the 
information furnished, restore the preferential tariff treatment. 

(8)  Where  the  Issuing  Authority  or  exporter  or  producer,  as  the  case  may  be,  does  not  furnish 
information within the specified time or the information furnished by him is not found satisfactory, the 
proper officer shall disallow the preferential tariff treatment for reasons to be recorded in writing: 

Provided that in case of receipt of incomplete or non-specific information, the proper officer may send 
another request to the Issuing Authority stating specifically the shortcoming in the information furnished 
by such authority, in such circumstances and in such manner as may be provided by rules. 

(9) Unless otherwise specified in the trade agreement, any request for verification shall be sent within 

a period of five years from the date of claim of preferential rate of duty by an importer. 

(10) Notwithstanding anything contained in this section, the preferential tariff treatment may be refused 

without verification in the following circumstances, namely:— 

(i) the tariff item is not eligible for preferential tariff treatment; 

(ii) complete description of goods is not contained in the certificate of origin; 

(iii) any alteration in the certificate of origin is not authenticated by the Issuing Authority; 

(iv) the certificate of origin is produced after the period of its expiry,  

and in all such cases, the certificate of origin shall be marked as ‘‘IN APPLICABLE’’. 

42 

 
(11) Where the verification under this section establishes non-compliance of the imported goods with 
the country of origin criteria, the proper officer may reject the preferential tariff treatment to the imports of 
identical goods from the same producer or exporter, unless sufficient information is furnished to show that 
identical goods meet the country of origin criteria. 

Explanation.––For the purposes of this Chapter,— 

(a) “certificate of origin” means a certificate issued in accordance with a trade agreement certifying 
that the goods fulfil the country of origin criteria and other requirements specified in the said agreement; 

(b) “identical goods” means goods that are same in all respects with reference to the country of 

origin criteria under the trade agreement; 

(c) “Issuing Authority” means any authority designated for the purposes of issuing certificate of 

origin under a trade agreement;  

(d) “trade agreement” means an agreement for trade in goods between the Government of India and 

the Government of a foreign country or territory or economic union.] 

1[CHAPTER VB 

ADVANCE RULINGS 

28E. Definitions.—In this Chapter, unless the context otherwise requires,— 

2* 

* 

* 

* 

* 

3[(b)  “advance ruling” means a written decision on any of the questions referred to in section 28H 
raised by the applicant in his application in respect of any goods prior to its importation or exportation;] 

4* 

* 

* 

* 

* 

 5[(c) “applicant” means any person,— 

(i)  holding  a  valid  Importer-exporter  Code  Number  granted  under  section  7  of  the  Foreign 

Trade (Development and Regulation) Act, 1992 (22 of 1992); or 

(ii) exporting any goods to India; or 

(iii) with a justifiable cause to the satisfaction of the Authority, 

who makes an application for advance ruling under section 28H;] 

 6[ 7[* 

          *  

   * 

* 

*.]] 

1. Ins. by Act 27 of 1999, s. 103 (w.e.f. 11-5-1999). 
2. Clause (a) omitted by Act 13 of 2018, s. 64 (w.e.f. 28-3-2018). 
3. Subs. by s. 64, ibid., for clause (b) (w.e.f. 28-3-2018). 
4. Clause (ba) omitted by Act 33 of 2021, s. 12 (w.e.f. 4-4-2021). 
5. Subs. by s. 64, ibid., for clause (c) (w.e.f. 28-3-2018). 
6. Ins. by Act 22 of 2007, s. 97 (w.e.f. 11-5-2007). 
7. The Explanation omitted by Act 6 of 2022, s. 90 (w.e.f. 30-3-2022). 

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(d) ”application” means an application made to the Authority under sub-section (1) of section 28H; 

1[(e) ”Authority”  means  the  Customs  Authority  for  Advance  Rulings  appointed  under  section 

28EA;] 

2* 

3* 

4[ 5[* 

* 

* 

* 

* 

* 

* 

* 

* 

* 

* 

* 

*]] 

6[28EA. Customs Authority for Advance Rulings.—(1) The Board may, for the purposes of giving 
advance rulings under this Act, by notification, appoint an officer of the rank of Principal Commissioner of 
Customs or Commissioner of Customs to function as a Customs Authority for Advance Rulings: 

7* 

* 

* 

* 

* 

(2) The offices of the Authority may be established in New Delhi and at such other places, as the Board 

may deem fit. 

(3) Subject to the provisions of this Act, the Authority shall exercise the powers and authority conferred 

on it by or under this Act.] 

8[28F. Authority for advance rulings.—9*** 

Provided  that  the  Member  from  the  Indian  Revenue  Service  (Customs  and  Central  Excise),  who  is 
qualified to be a Member of the Board, shall be the revenue Member of the 10[Appellate Authority] for the 
purposes of this Act. 

(2) On and from the date on which the Finance Bill, 2017 receives the assent of the President, every 
application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, 
Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application 
or proceeding stood as on the date of such assent.] 

11[(3)  On  and  from  the  date  of  appointment  of  the  Customs  Authority  for  Advance  Rulings,  every 
application and proceeding pending before the erstwhile Authority for Advance Rulings shall stand transferred 
to  the  Authority  from  the  stage  at  which  such  application  or  proceeding  stood  as  on  the  date  of  such 
appointment.] 

28G. [Vacancies, etc., not to invalidate proceedings.] Omitted by the Finance Act, (7 of 2017),  

s. 95 (w.e.f. 31-3-2017).  

28H.  Application  for  advance  ruling.—(1)  An  applicant  desirous  of  obtaining  an  advance  ruling 
under this Chapter may make an application in such form and in such manner 12[and accompanied by such 
fee] as may be prescribed, stating the question on which the advance ruling is sought. 

1. Subs. by Act 13 of 2018, s. 64, for clause (e) (w.e.f. 28-3-2018). 
2. Clause (f) omitted by Act 33 of 2021, s. 12 (w.e.f. 4-4-2021). 
3. Clause (g) omitted by s. 12, ibid. (w.e.f. 4-4-2021). 
4. Subs. by Act 32 of 2003, s. 110, for clause (h) (w.e.f. 14-5-2003). 
5. Clause (h) omitted by Act 6 of 2022, s. 90 (w.e.f. 30-3-2022).   
6. Ins. by Act 13 of 2018, s. 65 (w.e.f. 28-3-2018). 
7. The Proviso omitted by Act 33 of 2021, s. 12 (w.e.f. 4-4-2021). 
8. Subs. by Act 7 of 2017, s. 94, for section 28F (w.e.f. 31-3-2017). 
9. Sub-section (1) omitted by Act 33 of 2021, s. 12 (w.e.f. 4-4-2021). 
10. Subs. by s. 66, ibid., for “Authority” (w.e.f. 28-3-2018). 
11. Ins. by s. 66, ibid (w.e.f. 28-3-2018). 
12.  Ins. by Act 6 of 2022, s. 91, (w.e.f. 30-3-2022). 

44 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(2)  The question on which the advance ruling is sought shall be in respect of, — 

(a)  classification of goods under the Customs Tariff Act, 1975 (51 of 1975); 

(b)  applicability of a notification issued under sub-section (1) of section 25, having a bearing on 

the rate of duty; 

(c)  the principles to be adopted for the purposes of determination of value of the goods under the 

provisions of this Act; 

1[(d) applicability of notifications issued in respect of tax or duties under this Act or the Customs 
Tariff Act, 1975 (51 of 1975) or any tax or duty chargeable under any other law for the time being in 
force in the same manner as duty of customs leviable under this Act or the Customs Tariff Act;] 

2[(e) determination of origin of the goods in terms of the rules notified under the Customs Tariff 

Act, 1975 (51 of 1975) and matters relating thereto;] 

3[(f) any other matter as the Central Government may, by notification, specify.] 

4[*   

* 

* 

* 

*]. 

(4) An applicant may withdraw his application 5[at any time before an advance ruling is pronounced]. 

6[(5) The applicant may be represented by any person resident in India who is authorised in this behalf. 

Explanation.—For the purposes of this sub-section “resident” shall have the same meaning as assigned 

to it in clause (42) of section 2 of the Income-tax Act, 1961 (43 of 1961).] 

28-I. Procedure on receipt of application.—(1) On receipt of an application, the Authority shall cause 
a copy thereof to be forwarded to the 7[Principal Commissioner of Customs or Commissioner of Customs] 
and, if necessary, call upon him to furnish the relevant records: 

Provided that where any records have been called for by the Authority in any case, such records shall, 
as soon as possible, be returned to the 7[Principal Commissioner of Customs or Commissioner of Customs]. 

(2) The Authority may, after examining the application and the records called for, by order, either allow 

or reject the application: 

Provided that  the  Authority  shall  not  allow  the  application 8***  where  the  question  raised  in  the 

application is — 

(a) already pending in the applicant's case before any officer of customs, the Appellate Tribunal or 

any Court; 

(b) the same as in a matter already decided by the Appellate Tribunal or any Court: 

Provided further that no application shall be rejected under this sub-section unless an opportunity has 

been given to the applicant of being heard: 

Provided also that where the application is rejected, reasons for such rejection shall be given in the 

order. 

1. Subs. by Act 13 of 2018, s. 67, for clause (d) (w.e.f. 28-3-2018). 
2. Ins. by Act 18 of 2005, s. 67 (w.e.f. 13-5-2005). 
3. Ins. by Act 13 of 2018, s. 67 (w.e.f. 28-3-2018). 
4. Sub-section 3 omitted by Act 6 of 2022, s. 91 (w.e.f. 30-3-2022). 
5. Subs by Act 6 of 2022, s. 91 for “within thirty days from the date of the application” (w.e.f. 30-3-2022). 
6. Ins. by Act 13 of 2018, s. 67 (w.e.f. 28-3-2018). 
7. Subs. by Act 25 of 2014, s. 78 for “Commissioner of Customs” (w.e.f. 6-8-2014). 
8. The words “except in the case of a resident applicant” omitted by Act 20 of 2002, s. 122 (w.e.f. 11-5-2002). 

45 

 
 
 
 
 
 
 
 
                                                           
(3)  A  copy  of  every  order  made  under  sub-section  (2)  shall  be  sent  to  the  applicant  and  to  the  

1[Principal Commissioner of Customs or Commissioner of Customs]. 

(4) Where an application is allowed under sub-section (2), the Authority shall, after examining such 
further material as may be placed before it by the applicant or obtained by the Authority, pronounce its 
advance ruling on the question specified in the application. 

(5) On a request received from the applicant, the Authority shall, before pronouncing its advance ruling, 
through  a 
the  applicant  of  being  heard,  either 

in  person  or 

provide  an  opportunity 
to 
duly authorised representative. 

 Explanation.—For the purposes of this sub-section, “authorised representative” shall have the meaning 

assigned to it in sub-section (2) of section 146A. 

(6)  The Authority shall pronounce its advance ruling in writing within 2[three months] of the receipt 

of application. 

 (7) A copy of the advance ruling pronounced by the Authority, duly signed  3*** and certified in the 
prescribed  manner  shall  be  sent  to  the  applicant  and  to  the  1[Principal  Commissioner  of  Customs  or 
Commissioner of Customs], as soon as may be, after such pronouncement. 

28J. Applicability of advance ruling.—(1) The advance ruling pronounced by the Authority under 

section 28-I shall be binding only— 

(a) on the applicant who had sought it; 

(b) in respect of any matter referred to in sub-section (2) of section 28H; 
(c) on the 1[Principal Commissioner of Customs or Commissioner of Customs], and the customs 

authorities subordinate to him, in respect of the applicant. 

4[(2) The advance ruling referred to in sub-section (1) shall remain valid for three years or till there is 
a change in law or facts on the basis of which the advance ruling has been pronounced, whichever is earlier:  

Provided that in respect of any advance ruling in force on the date on which the Finance Bill, 2022 
receives the assent of the President, the said period of three years shall be reckoned from the date on which 
the said Finance Bill receives the assent of the President.] 

28K. Advance ruling  to  be  void  in  certain  circumstances.—(1)  Where  the  Authority  finds,  on  a 
representation made to it by the 1[Principal Commissioner of Customs or Commissioner of Customs] or 
otherwise, that an advance ruling pronounced by it under sub-section (6) of section 28-I has been obtained 
by  the  applicant  by  fraud  or  misrepresentation  of  facts,  it  may,  by  order,  declare  such  ruling  to  be 
void ab initio and  thereupon  all  the  provisions  of  this  Act  shall  apply    5***  to  the  applicant  as  if  such 
advance ruling had never been made. 

6[Provided  that in  computing  the  period of two  years referred to  in  clause  (a)  of  sub-section  (1)  of 
section 28, or five years referred to in sub-section (4) thereof, for service of notice for recovery of any duty 
not levied, short-levied, not paid or short-paid on account of the advance ruling, the period beginning with 
the  date  of  such  advance  ruling  and  ending  with  the  date  of  the  order  under  this  sub-section  shall  be 
excluded.] 

(2)  A copy of the order made under sub-section (1) shall be sent to the applicant and the 1[Principal 

Commissioner of Customs or Commissioner of Customs]. 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
2. Subs. by Act 13 of 2018, s. 68, for “six months” (w.e.f. 28-3-2018). 
3. The words “by the Members” omitted by Act 6 of 2022, s. 92 (w.e.f. 30-3-2022). 
4. Subs. by Act 6 of 2022, s. 93, for sub-section (2) (w.e.f. 30-3-2022). 
5. The brackets and words “(after excluding the period beginning with the date of such advance ruling and ending with the date of 

order under this sub-section)” omitted by Act 13 of 2018, s. 69 (w.e.f. 28-3-2018). 

6. The proviso ins. by Act 13 of 2018, s. 69 (w.e.f. 28-3-2018). 

46 

 
                                                           
1[28KA. Appeal.—(1) Any officer authorised by the Board, by notification, or the applicant may file an 
appeal to the 2[High Court] against any ruling or order passed by the Authority, within sixty days from the date 
of the communication of such ruling or order, in such form and manner as may be prescribed: 

Provided that where the 2[High Court] is satisfied that the appellant was prevented by sufficient cause 
from presenting the appeal within the period so specified, it may allow a further period of thirty days for 
filing such appeal. 

* 

3* 
28L. Powers of 4[Authority 5*** ].—(1) The 4[Authority 5***] shall, for the purpose of exercising its 
powers regarding discovery and inspection, enforcing the attendance of any person and examining him on 
oath, issuing commissions and compelling production of books of account and other records, have all the 
powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908). 

* 

* 

* 

the 

purposes 

(2) The 4[Authority 5***] shall be deemed to be a civil court for the purposes of section 195, but not 
for 
1973  
(2 of 1974), and every proceeding before the 4[Authority 5***] shall be deemed to be a judicial proceeding 
within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code 
(45 of 1860). 

of  Criminal  Procedure, 

of  Chapter  XXVI 

the  Code 

of 

6[28M.  Procedure  for  Authority  7***.—(1)  The  Authority  shall  follow  such  procedure  as  may  be 

prescribed. 
8* 

* 

* 

* 

* 

CHAPTER VI 
PROVISIONS RELATING TO CONVEYANCES CARRYING IMPORTED OR EXPORTED GOODS 

29.  Arrival of vessels and aircrafts in India.—(1) The person-in-charge of a vessel or  an aircraft 
entering India from any place outside India shall not cause or permit the vessel or aircraft to call or land— 

(a) for the first time after arrival in India; or 
(b) at any time while it is carrying passengers or cargo brought in that vessel or aircraft; 
at any place other than a customs port or a customs airport, as the case may be 9[unless permitted by the 
Board]. 

(2)  The  provisions  of  sub-section  (1)  shall  not  apply  in  relation  to  any  vessel  or  aircraft  which  is 
compelled by accident, stress of weather or other unavoidable cause to call or land at a place other than a 
customs port or customs airport but the person-in-charge of any such vessel or aircraft— 

(a) shall immediately report the arrival of the vessel or the landing of the aircraft to the nearest 
customs officer or the officer-in-charge of a police station and shall on demand produce to him the log 
book belonging to the vessel or the aircraft; 

(b) shall not without the consent of any such officer permit any goods carried in the vessel or the 
aircraft to be unloaded from, or any of the crew or passengers to depart from the vicinity of, the vessel 
or the aircraft; and 

(c)  shall comply with any directions given by any such officer with respect to any such goods, 

and no passenger or member of the crew shall, without the consent of any such officer, leave the immediate 
vicinity of the vessel or the aircraft: 

1. Section 28KA shall stand inserted (date to be notified) by Act 13 of 2018, s. 70. 
2. Subs. by Act 33 of 2021, s. 12, for “Appellate Authority” (w.e.f. 4-4-2021). 
3. Sub-section (2) omitted by Act 33 of 2021, s. 12 (w.e.f. 4-4-2021). 
4. Subs. by Act 13 of 2018, s. 71, for “Authority” (w.e.f. 28-3-2018).   
5. The words “or Appellate Authority” omitted by Act 33 of 2021, s. 12 (w.e.f. 4-4-2021). 
6. Subs. by s. 72, ibid., for section 28M (w.e.f. 28-3-2018). 
7. The words “and Appellate Authority” omitted by Act 33 of 2021, s. 12 (w.e.f. 4-4-2021). 
8. Sub-section (2) omitted by s. 12, ibid. (w.e.f. 4-4-2021). 
9. Ins. by Act 17 of 2013, s. 69 (w.e.f. 10-5-2013). 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
Provided that nothing in this section shall prohibit the departure of any crew or passengers from the 
vicinity of, or the removal of goods from, the vessel or aircraft where the departure or removal is necessary 
for reasons of health, safety or the preservation of life or property. 

30.  Delivery  of  1[arrival  manifest  or  import  manifest] or  import  report.—2[(1)  The  person-in-

charge of — 

(i)    a vessel; or 

(ii)   an aircraft; or 

(iii)  a vehicle, 

carrying  imported  goods  3[or  export  goods]  or  any  other  person  as  may  be  specified  by  the  Central 
Government, by notification in the Official Gazette, in this behalf shall, in the case of a vessel or an aircraft, 
deliver to the proper officer 4[an 1[arrival manifest or import manifest] by presenting electronically prior to 
the arrival] of the vessel or the aircraft, as the case may be, and in the case of a vehicle, an import report 
within twelve hours after its arrival in the customs station, in 5[such form and manner as may be prescribed] 
and if the 1[arrival manifest or import manifest] or the import report or any part thereof, is not delivered to 
the proper officer within the time specified in this sub-section and if the proper officer is satisfied that there 
was  no  sufficient  cause  for  such  delay,  the  person-in-charge  or  any  other  person  referred  to  in  this               
sub-section, who caused such delay, shall be liable to a penalty not exceeding fifty thousand rupees:] 

6[Provided that the 7[Principal Commissioner of Customs or Commissioner of Customs] may, in cases 
where it is not feasible to deliver 1[arrival manifest or import manifest] by presenting electronically, allow 
the same to be delivered in any other manner.] 

(2) The person delivering the  1[arrival manifest or import manifest] or import report shall at the foot 

thereof make and subscribe to a declaration as to the truth of its contents. 

(3) If the proper officer is satisfied that the 1[arrival manifest or import manifest] or import report is in 
any way incorrect or incomplete, and that there was no fraudulent intention, he may permit it to be amended 
or supplemented. 

8[30A. Passenger and crew arrival manifest and passenger name record information.—(1) The 
person-in-charge of a conveyance that enters India from any place outside India or any other person as may 
be specified by the Central Government by notification in the Official Gazette, shall deliver to the proper 
officer— 

(i) the passenger and crew arrival manifest before arrival in the case of an aircraft or a vessel and 

upon arrival in the case of a vehicle; and 

1. Subs. by Act 13 of 2018, s. 56, for “import manifest” (w.e.f. 28-3-2018). 
2. Subs. by Act 32 of 2003, s. 112, for sub-section (1) (w.e.f 14-5-2003). 
3. Ins. by Act 13 of 2018, s. 73 (w.e.f. 28-3-2018). 
4. Subs. by Act 17 of 2013, s. 70, for “an import manifest prior to the arrival” (w.e.f. 10-5-2013). 
5. Subs. by Act 13 of 2018, s. 73, for “the prescribed form” (w.e.f. 28-3-2018). 
6. Ins. by Act 17 of 2013, s. 70 (w.e.f. 10-5-2013). 
7. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
9. Ins. by Act 7 of 2017, s. 98 (w.e.f. 31-3-2017). 

48 

 
 
                                                           
(ii) the passenger name record information of arriving passengers, 

in such form, containing such particulars, in such manner and within such time, as may be prescribed. 

(2) Where the passenger and crew arrival manifest or the passenger name record information or any 
part thereof is not delivered to the proper officer within the prescribed time and if the proper officer is 
satisfied that there was no sufficient cause for such delay, the person-in-charge or the other person referred 
to  in  sub-section  (1)  shall  be  liable  to  such  penalty,  not  exceeding  fifty  thousand  rupees,  as  may  be 
prescribed.] 

31.  Imported goods not to be unloaded from vessel until entry inwards granted.— (1) The master 
of a vessel shall not permit the unloading of any imported goods until an order has been given by the proper 
officer granting entry inwards to such vessel. 

(2)   No order under sub-section (1) shall be given until an 1[arrival manifest or import manifest] has 

been delivered or the proper officer is satisfied that there was sufficient cause for not delivering it. 

(3)   Nothing in this section shall apply to the unloading of baggage accompanying a passenger or a 

member of the crew, mail bags, animals, perishable goods and hazardous goods. 

32.   Imported  goods  not  to  be  unloaded  unless  mentioned  in  1[arrival  manifest  or  import 
manifest] or import report.—No imported goods required to be mentioned under the regulations in an 
1[arrival  manifest  or  import  manifest]  or  import  report  shall,  except  with  the  permission  of  the  proper 
officer, be unloaded at any customs station unless they are specified in such manifest or report for being 
unloaded at that customs station. 

33.  Unloading and loading of goods at approved places only.—Except with the permission of the 
proper officer, no imported goods shall be unloaded, and no export goods shall be loaded, at any place other 
than a place approved under clause (a) of section 8 for the unloading or loading of such goods. 

34. Goods not to be unloaded or loaded except under supervision of customs officer.—Imported 
goods shall not be unloaded from, and export goods shall not be loaded on, any conveyance except under 
the supervision of the proper officer: 

 Provided that the Board may, by notification in the Official Gazette, give general permission and the 
proper officer may in any particular case give special permission, for any goods or class of goods to be 
unloaded or loaded without the supervision of the proper officer. 

35.  Restrictions on goods being water-borne.—No imported goods shall be water-borne for being 
landed from any vessel, and no export goods which are not accompanied by a shipping bill, shall be water-
borne for being shipped, unless the goods are accompanied by a boat-note in the prescribed form: 

Provided that the Board may, by notification in the Official Gazette, give general permission, and the 
proper officer may in any particular case give special permission, for any goods or any class of goods to be 
water-borne without being accompanied by a boat-note. 

36.  Restrictions on unloading and loading of goods on holidays, etc.—No imported goods shall be 
unloaded from, and no export goods shall be loaded on, any conveyance on any Sunday or on any holiday 
observed by the Customs Department or on any other day after the working hours, except after giving the 
prescribed notice and on payment of the prescribed fees, if any: 

Provided that  no  fees  shall  be  levied  for  the  unloading  and  loading  of  baggage  accompanying  a 

passenger or a member of the crew, and mail bags. 

49 

 
37. Power  to  board  conveyances.—The  proper  officer  may,  at  any  time,  board  any  conveyance 
carrying  imported  goods  or  export  goods  and  may  remain  on  such  conveyance  for  such  period  as  he 
considers necessary. 

38.  Power to require production of documents and ask questions.—For the purposes of carrying 
out the provisions of this Act, the proper officer may require the person-in-charge of any conveyance or 
animal carrying imported goods or export goods to produce any document and to answer any questions and 
thereupon such person shall produce such documents and answer such questions. 

39. Export goods not to be loaded on vessel until entry-outwards granted.—The master of a vessel 
shall not permit the loading of any export goods, other than baggage and mail bags, until an order has been 
given by the proper officer granting entry-outwards to such vessel. 

40. Export goods not to be loaded unless duly passed by proper officer.—The person-in-charge of 

a conveyance shall not permit the loading at a customs station— 

(a) of export goods, other than baggage and mail bags, unless a shipping bill or bill of export or a 
bill of transhipment, as the case may be, duly passed by the proper officer, has been handed over to him 
by the exporter; 

(b) of baggage and mail bags, unless their export has been duly permitted by the proper officer. 

41. Delivery of  1[departure manifest or export manifest] or export report.—(1)  2[The person-in-
charge of a conveyance carrying export goods or imported goods or any other person as may be specified 
by  the  Central  Government,  by  notification,  shall,  before  departure  of  the  conveyance  from  a  customs 
station, deliver to the proper officer in the case of a vessel or aircraft, a departure manifest or an export 
manifest by presenting electronically, and in the case of a vehicle, an export report, in such form and manner 
as  may  be  prescribed  and  in  case,  such  person-in-charge  or  other  person  fails  to  deliver  the  departure 
manifest or export manifest or the export report or any part thereof within such time, and the proper officer 
is satisfied that there is no sufficient cause for such delay, such person-in-charge or other person shall be 
liable to pay penalty not exceeding fifty thousand rupees.] 

3*    

* 

* 

* 

4[Provided that the 5[Principal Commissioner of Customs or Commissioner of Customs] may, in cases 
where it is not feasible to deliver the 6[departure manifest or export manifest] by presenting electronically, 
allow the same to be delivered in any other manner.] 

(2)  The person delivering the 5[departure manifest or export manifest] or export report shall at the foot 

thereof make and subscribe to a declaration as to the truth of its contents. 

(3) If the proper officer is satisfied that the 5[departure manifest or export manifest] or export report is 
in any way incorrect or incomplete and that there was no fraudulent intention, he may permit such manifest 
or report to be amended or supplemented. 

1. Subs. by Act 13 of 2018, s. 56, for “export manifest” (w.e.f. 28-3-2018). 
2. Subs. by Act 23 of 2019, s. 70, for certain words (w.e.f. 1-8-2019). 
3. Proviso omitted by Act of 23 of 2004, s. 66 (w.e.f. 10-9-2004). 
4. Ins. by Act 17 of 2013, s. 71 (w.e.f. 10-5-2013). 
5. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014).   
6. Subs. by Act 13 of 2018, s. 56, for “export manifest” (w.e.f. 28-3-2018). 

50 

 
 
 
 
 
 
 
 
 
 
 
                                                           
1[41A. Passenger and crew departure manifest and passenger name record information.—(1) The 
person-in-charge of a conveyance that departs from India to a place outside India or any other person as 
may be specified by the Central Government by notification in the Official Gazette, shall deliver to the 
proper officer— 

(i) the passenger and crew departure manifest; and 

(ii) the passenger name record information of departing passengers, 

in such form, containing such particulars, in such manner and within such time, as may be prescribed. 

 (2) Where the passenger and crew departure manifest or the passenger name record information or any 
part thereof is not delivered to the proper officer within the prescribed time and if the proper officer is 
satisfied that there was no sufficient cause for such delay, the person-in-charge or the other person referred 
to  in  sub-section  (1)  shall  be  liable  to  such  penalty,  not  exceeding  fifty  thousand  rupees,  as  may  be 
prescribed.] 

42. No conveyance to leave without written order.—(1) The person-in-charge of a conveyance which 
has brought any imported goods or has loaded any export goods at a customs station shall not cause or 
permit the conveyance to depart from that customs station until a written order to that effect has been given 
by the proper officer. 

(2)  No such order shall be given until,—   

(a)   the  person-in-charge  of  the  conveyance  has  answered  the  questions  put  to  him  under               

section 38; 

(b)  the provisions of section 41 have been complied with; 

(c)  the shipping bills or bills of export, the bills of transhipment, if any, and such other documents 

as the proper officer may require have been delivered to him; 

(d)  all duties leviable on any stores consumed in such conveyance, and all charges and penalties 
due in respect of such conveyance or from the person-in-charge thereof have been paid or the payment 
secured by such guarantee or deposit of such amount as the proper officer may direct; 

(e)   the  person-in-charge  of  the  conveyance  has  satisfied  the  proper  officer  that  no  penalty 
is leviable on him under section 116 or the payment of any penalty that may be levied upon him under 
that section has been secured by such guarantee or deposit of such amount as the proper officer may 
direct; 

(f)   in any case where any export goods have been loaded without payment of export duty or in 
contravention of any provision of this Act or any other law for the time being in force relating to export 
of goods,—   

(i)   such goods have been unloaded, or 

1. Ins. by Act 7 of 2017, s. 99 (w.e.f. 31-3-2017). 

51 

 
                                                           
(ii)   where the 1[Assistant Commissioner of Customs or Deputy Commissioner of Customs] is 
satisfied that it is not practicable to unload such goods, the person-in-charge of the conveyance has 
given an undertaking, secured by such guarantee or deposit of such amount as the proper officer 
may direct, for bringing back the goods to India. 

43.  Exemption  of  certain  classes  of  conveyances  from  certain  provisions  of  this  Chapter.— 
(1) The provisions of sections 30, 41 and 42 shall not apply to a vehicle which carries no goods other than 
the luggage of its occupants. 

 (2)   The Central Government may, by notification in the Official Gazette, exempt the following classes 

of conveyances from all or any of the provisions of this Chapter— 

(a) conveyances belonging to the Government or any foreign Government; 

(b) vessels and aircraft which temporarily enter India by reason of any emergency. 

CHAPTER VII  

CLEARANCE OF IMPORTED GOODS AND EXPORT GOODS 

44.  Chapter not to apply to baggage and postal articles.—The provisions of this Chapter shall not 

apply to (a) baggage, and (b) goods imported or to be exported by post.  

Clearance of Imported goods 

45.  Restrictions on custody and removal of imported goods.—(1) Save as otherwise provided in 
any law for the time being in force, all imported goods unloaded in a customs area shall remain in the 
custody of such person as may be approved by the 2[Principal Commissioner of Customs or Commissioner 
of  Customs]  until  they  are  cleared  for  home  consumption  or  are  warehoused  or  are  transhipped  in 
accordance with the provisions of Chapter VIII. 

(2) The person having custody of any imported goods in a customs area, whether under the provisions 

of sub-section (1) or under any law for the time being in force,— 

(a) shall keep a record of such goods and send a copy thereof to the proper officer; 
(b) shall not permit such goods to be removed from the customs area or otherwise dealt with, except 
under and in accordance with the permission in writing of the proper officer 3[or in such manner as may 
be prescribed]. 
 4[(3)  Notwithstanding anything contained in any law for the time being in force, if any imported goods 
are pilferred after unloading thereof in a customs area while in the custody of a person referred to in sub-
section (1), that person shall be liable to pay duty on such goods at the rate prevailing on the date of delivery 
of an 5[arrival manifest or import manifest] or, as the case may be, an import report to the proper officer 
under section 30 for the arrival of the conveyance in which the said goods were carried.] 

46.  Entry of goods on importation.—(1) The importer of any goods, other than goods intended for 
transit or transhipment, shall make entry thereof by presenting  6[electronically] 7[on the customs automated 
system]  to  the  proper  officer  a  bill  of  entry  for  home  consumption  or  warehousing  8[in  such  form  and 
manner as may be prescribed]: 

1. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999).  
2. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
3. Ins. by Act 13 of 2018, s. 75 (w.e.f. 28-3-2018). 
4. Ins. by Act 22 of 1995, s. 58 (w.e.f. 26-5-1995). 
5. Subs. by Act 13 of 2018, s. 56, for “import manifest” (w.e.f. 28-3-2018). 
6. Ins. by Act 8 of 2011, s. 44 (w.e.f. 8-4-2011).  
7. Ins. by Act 13 of 2018, s. 76 (w.e.f. 28-3-2018). 
8. Subs. by Act 13 of 2018,  s. 76,  for “in the prescribed form” (w.e.f. 28-3-2018). 

52 

 
                                                           
1[Provided that the 2[Principal Commissioner of Customs or Commissioner of Customs] may, in cases 
where  it is  not feasible  to make  entry  by presenting  electronically  3[on  the customs  automated system], 
allow an entry to be presented in any other manner: 

Provided  further that]  if the importer makes and subscribes to a declaration before the proper officer, 
to the effect that he is unable for want of full information to furnish all the particulars of the goods required 
under this sub-section, the proper officer may, pending the production of such information, permit him, 
previous to the entry thereof (a) to examine the goods in the presence of an officer of customs, or (b) to 
deposit the goods in a public warehouse appointed under section 57 without warehousing the same. 

(2)  Save as  otherwise  permitted  by  the  proper  officer,  a  bill  of  entry  shall  include  all  the  goods 

mentioned in the bill of lading or other receipt given by the carrier to the consignor. 

4[(3)  The  importer  shall  present  the  bill  of  entry  under  sub-section  (1)  5[before  the  end  of  the  day 
(including  holidays)]  on  which the  aircraft  or  vessel or  vehicle carrying  the  goods  arrives  at  a customs 
station at which such goods are to be cleared for home consumption or warehousing:  

6[Provided  that  the  Board may,  in  such cases as it  may  deem  fit,  prescribe different time  limits for 

presentation of the bill of entry, which shall not be later than the end of the day of such arrival: 

Provided further that] a bill of entry may be presented 7[at any time not exceeding thirty days prior to] 
the expected arrival of the aircraft or vessel or vehicle by which the goods have been shipped for importation 
into India: 

 Provided further that where the bill of entry is not presented within the time so specified and the proper 
officer is satisfied that there was no sufficient cause for such delay, the importer shall pay such charges for 
late presentation of the bill of entry as may be prescribed.] 

(4) The importer while presenting a bill of entry shall 8*** make and subscribe to a declaration as to  

the truth of the contents of such bill of entry and shall, in support of such declaration, produce to the 
proper officer the invoice, if any, 9[and such other documents relating to the imported goods as may be 
prescribed]. 

10[(4A) The importer who presents a bill of entry shall ensure the following, namely:— 

(a) the accuracy and completeness of the information given therein; 

(b) the authenticity and validity of any document supporting it; and 

(c) compliance with the restriction or prohibition, if any, relating to the goods under this Act or 

under any other law for the time being in force.] 

(5) If the proper officer is satisfied that the interests of revenue are not prejudicially affected and that 
there was no fraudulent intention, he may permit substitution of a bill of entry for home consumption for 
a bill of entry for warehousing or vice versa. 

47. Clearance of goods for home consumption.—11[(1)] Where the proper officer is satisfied that any 
goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if 
any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may 
make an order permitting clearance of the goods for home consumption: 

1. Subs. by Act 8 of 2011, s. 44, for “Provided that” (w.e.f. 8-4-2011). 
2. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
7. Ins. by Act 13 of 2018, s. 76 (w.e.f. 28-3-2018). 
3. Subs. by Act 7 of 2017, s. 100 for sub-section (3) (w.e.f. 31-3-2017). 
4. Subs. by Act 13 of 2021, s. 93, for “before the end of the next day following the day (excluding holidays)” (w.e.f. 28-3-2021). 
5. Subs. by s. 93, ibid., for “Provided further day” (w.e.f. 28-3-2021). 
6. Subs. by Act 13 of 2018, s. 76, for “within thirty days of” (w.e.f. 28-3-2018). 
7. The words “at the foot thereof” omitted by Act 8 of 2011, s. 44  (w.e.f. 8-4-2011)  
8. Subs. by Act 13 of 2018, s. 76, for “relating to the imported goods” (w.e.f. 28-3-2018). 
9. Ins. by s. 76, ibid. (w.e.f. 28-3-2018). 
10. Section 47 renumbered as sub-section (1) thereof by Act 55 of 1991, s. 3, (w.e.f. 23-12-1991).  

53 

 
                                                           
1[ 2[Provided that such order may also be made electronically through the customs automated system 

on the basis or risk evaluation through appropriate selection criteria:  

Provided  further  that]  the  Central  Government  may,  by  notification  in  the  Official  Gazette,  permit 
certain class of importers to make deferred payment of said duty or any charges in such manner as may be 
provided by rules.] 

3[(2) 4[The importer shall pay the import duty— 

(a) on the date of presentation of the bill of entry in the case of self assessment; or 

(b) within one day (excluding holidays) from the date on which the bill of entry is returned to him 
by  the  proper  officer  for  payment  of  duty  in  the  case  of  assessment,  reassessment  or  provisional 
assessment; or 

(c) in the case of deferred payment under the proviso to sub-section (1), from such due date as may 

be specified by rules made in this behalf, 

and if he fails to pay the duty within the time so specified, he shall pay interest on the duty not paid or short-
paid till the date of its payment, at such rate, not less than ten per cent. but not exceeding thirty-six per cent. 
per annum, as may be fixed by the Central Government, by notification in the Official Gazette.] 

5[Provided that the Central Government may, by notification in the Official Gazette, specify the class 

or classes of importers who shall pay such duty electronically: 

6[Provided also that]] where the bill of entry is returned for payment of duty before the commencement 
of the Customs (Amendment) Act, 1991 (55 of 1991) and the importer has not paid such duty before such 
commencement,  the  date  of  return  of  such  bill  of  entry  to  him  shall  be  deemed  to  be  the  date  of  such 
commencement for the purpose of this section:] 

7[ 8[Provided also that] if the Board is satisfied that it is necessary in the public interest so to do, it may, 

by order for reasons to be recorded, waive the whole or part of any interest payable under this section.] 

48.  Procedure  in  case  of  goods  not  cleared,  warehoused,  or  transhipped  within 9[thirty  days] 
after unloading.—If any goods brought into India from a place outside India are not cleared for home 
consumption or warehoused or transhipped 10[within 11[thirty days]] from the date of the unloading thereof 
at a customs station or within such further time as the proper officer may allow or if the title to any imported 
goods is relinquished, such goods may, after notice to the importer and with the permission of the proper 
officer be sold by the person having the custody thereof: 

1. Ins. by Act 28 of 2016, s. 121 (w.e.f. 14-5-2016). 
2. Subs. by Act 13 of 2018, s. 77, for “Provided that” (w.e.f. 28-3-2018). 
3. Ins. by Act 55 of 1991, s. 3 (w.e.f. 23-12-1991). 
4. Subs. by Act 7 of 2017, s. 101, for certain words, brackets, letters and figure (w.e.f. 31-3-2017). Earlier certain words, brackets, 

letters and figure were substituted by Act 28 of 2016, s. 121 (w.e.f. 14-5-2016).  

5. Subs. by Act 23 of 2012, s. 124, for “Provided that” (w.e.f. 28-5-2012). 
6. Subs. by Act 13 of 2021, s. 94, for “Provided further that” (w.e.f. 28-3-2021). 
7. Ins. by Act 22 of 1995, s. 59 (w.e.f. 26-5-1995). 
8. Subs. by Act 23 of 2012, s. 124, for “Provided further that” (w.e.f. 28-5-2012). 
9. Subs. by Act 55 of 1991, s. 4, for “two months” (w.e.f. 21-12-1991).  
10. Subs. by Act 80 of 1985 s. 4, for “within two months” (w.e.f. 27-12-1985). 
11. Subs. by Act 55 of 1991, s. 4, for “forty-five days” (w.e.f. 21-12-1991). 

54 

 
 
 
                                                           
 Provided that — 

(a) animals, perishable goods and hazardous goods, may, with the permission of the proper officer, 

be sold at any time; 

(b) arms and ammunition may be sold at such time and place and in such manner as the Central 

Government may direct. 

Explanation.— In this section, “arms” and “ammunition” have the meanings respectively assigned to 

them in the Arms Act, 1959 (54 of 1959). 

1[49. Storage of imported goods in warehouse pending clearance or removal.—Where,––  

(a) in the case of any imported goods, whether dutiable or not, entered for home consumption, the 
Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied on the application 
of the importer that the goods cannot be cleared within a reasonable time; 

(b)  in  the  case  of  any  imported  dutiable  goods,  entered  for  warehousing,  the  Assistant 
Commissioner of Customs or Deputy Commissioner of Customs is satisfied on the application of the 
importer that the goods cannot be removed for deposit in a warehouse within a reasonable time, 

the goods may pending clearance or removal, as the case may be, be permitted to be stored in a public 
warehouse for a period not exceeding thirty days: 

Provided that the provisions of Chapter IX shall not apply to goods permitted to be stored in a public 

warehouse under this section: 

Provided further that the Principal Commissioner of Customs or Commissioner of Customs may extend 

the period of storage for a further period not exceeding thirty days at a time.] 

Clearance of export goods 

50.  Entry  of  goods  for  exportation.—(1)  The  exporter  of  any  goods  shall  make  entry  thereof  by 
presenting 2[electronically] 3[on the customs automated system] to the proper officer in the case of goods 
to be exported in a vessel or aircraft, a shipping bill, and in the case of goods to be exported by land, a bill 
of export 4[in such form and manner as may be prescribed]. 

1[Provided that the 5[Principal Commissioner of Customs or Commissioner of Customs] may, in cases 
where it is not feasible to make entry by presenting electronically  2[on the customs automated system], 
allow an entry to be presented in any other manner.] 

1. Subs. by Act 7 of 2017, s. 102, for section 49 (w.e.f. 31-3-2017). 
2. Ins. by Act 8 of 2011, s. 45 (w.e.f 8-4-2011). 
3. Ins. by Act 13 of 2018, s. 78 (w.e.f. 28-3-2018). 
4. Subs. by s. 78, ibid., for “in the prescribed form” (w.e.f. 28-3-2018). 
5. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 

55 

 
 
 
                                                           
(2)  The exporter of any goods, while presenting a shipping bill or bill of export, shall 1*** make and 

subscribe to a declaration as to the truth of its contents. 

2[(3) The  exporter  who  presents  a  shipping  bill  or  bill  of  export  under  this  section  shall  ensure  the 

following, namely:— 

(a)  the accuracy and completeness of the information given therein; 

(b) the authenticity and validity of any document supporting it; and 

(c) compliance with the restriction or prohibition, if any, relating to the goods under this Act or 

under any other law for the time being in force.] 

 51. Clearance of goods for exportation.—2[(1)] Where the proper officer is satisfied that any goods 
entered for export are not prohibited goods and the exporter has paid the duty, if any, assessed thereon and 
any charges payable under this Act in respect of the same, the proper officer may make an order permitting 
clearance and loading of the goods for exportation: 

3[ 4[Provided that such order may also be made electronically through the customs automated system 

on the basis of risk evaluation through appropriate selection criteria: 

Provided  further  that]  the  Central  Government  may,  by  notification  in  the  Official  Gazette,  permit 
certain class of exporters to make deferred payment of said duty or any charges in such manner as may be 
provided by rules.] 

7[(2) Where the exporter fails to pay the export duty, either in full or in part, under the proviso to   sub-
section (1) by such due date as may be specified by rules, he shall pay interest on said duty not paid or 
short-paid till the date of its payment at such rate, not below five per cent and not exceeding thirty-six per 
cent per annum, as may be fixed by the Central Government, by notification in the Official Gazette.] 

5[CHAPTER VIIA 

PAYMENTS THROUGH ELECTRONIC CASH LEDGER 6[AND ELECTRONIC DUTY CREDIT LEDGER] 

51A. Payment of duty, interest, penalty, etc.—(1) Every deposit made towards duty, interest, penalty, 
fee or any other sum payable by a person under the provisions of this Act or under the Customs Tariff Act, 
1975 (51 of 1975) or under any other law for the time being in force or the rules and regulations made 
thereunder, using authorised mode of payment shall, subject to such conditions and restrictions, be credited 
to the electronic cash ledger of such person, to be maintained in such manner, as may be prescribed. 

(2) The amount available in the electronic cash ledger may be used for making any payment towards duty, 
interest, penalty, fees or any other sum payable under the provisions of this Act or under the Customs Tariff 
Act, 1975 (51 of 1975) or under any other law for the time being in force or the rules and regulations made 
thereunder in such manner and subject to such conditions and within such time as may be prescribed. 

1. The words “at the foot thereof” omitted by Act 8 of 2011, s. 45 (w.e.f. 8-4-2011). 
2. Section 51 renumbered as sub-section (1) thereof by Act 28 of 2016, s. 122 (w.e.f. 14-5-2016).  
3. Ins. by s. 122, ibid. (w.e.f. 14-5-2016). 
4. Subs. by Act 13 of 2018, s. 79, for “Provided that” (w.e.f. 28-3-2018). 
5. Ins. by Act 13 of 2018, s. 80 (w.e.f. 28-3-2018). 
6. Ins. by Act 12 of 2020, s. 111 (w.e.f. 27-3-2020). 

56 

 
                                                           
(3) The balance in the electronic cash ledger, after payment of duty, interest, penalty, fee or any other 

amount payable, may be refunded in such manner as may be prescribed. 

(4) Notwithstanding anything contained in this section, if the Board is satisfied that it is necessary or 
expedient so to do, it may, by notification, exempt the deposits made by such class of persons or with respect 
to such categories of goods, as may be specified in the notification, from all or any of the provisions of this 
section.] 

1[51B.  Ledger  for  duty  credit.—(1)  The  Central  Government  may,  by  notification  in  the  Official 

Gazette, specify the manner in which it shall issue duty credit,— 

(a)  in  lieu  of  remission  of  any  duty  or  tax  or  levy,  chargeable  on  any  material  used  in  the 
manufacture or processing of goods or for carrying out any operation on such goods in India that are 
exported; or 

(b)  in lieu  of  such  other  financial  benefit  subject  to  such  conditions  and  restrictions  as  may  be 

specified therein. 

(2) The duty credit issued under sub-section (1) shall be maintained in the customs automated system 
in the form of an electronic duty credit ledger of the person who is the recipient of such duty credit, in such 
manner as may be prescribed. 

(3) The duty credit available in the electronic duty credit ledger may be used by the person to whom it 
is issued or the person to whom it is transferred, towards making payment of duties payable under this Act 
or under the Customs Tariff Act, 1975 (51 of 1975) in such manner and subject to such conditions and 
restrictions and within such time as may be prescribed.] 

CHAPTER VIII  

 GOODS IN TRANSIT 

52. Chapter not to apply to baggage, postal articles and  stores.—The provisions of this Chapter 

shall not apply to (a) baggage, (b) goods imported by post, and (c) stores. 

2[ 3[53. Transit of certain goods without payment of duty.—Subject to the provisions of section 11, 
where any goods imported in a conveyance and mentioned in the 4[arrival manifest or import manifest] 
or the import report, as the case may be, as for transit in the same conveyance to any place outside India or 
to  any  customs  station,  the  proper  officer  may  allow  the  goods  and  the  conveyance  to  transit  without 
payment of duty, subject to such conditions, as may be prescribed.] 

 54. Transhipment of certain goods without payment of duty.—(1) Where any goods imported into 
a  customs  station  are  intended  for transhipment,  a  bill  of transhipment shall  be  presented  to  the  proper 
officer in 5[such form and manner as may be prescribed]: 

6[Provided that  where  the  goods  are  being  transhipped  under  an  international  treaty  or  bilateral 
agreement  between  the  Government  of  India  and  Government  of  a  foreign  country,  a  declaration 
for transhipment instead of a bill of transhipment shall be presented to the proper officer in 5[such form and 
manner as may be prescribed].] 

1. Ins. by Act 12 of 2020, s. 112 (w.e.f. 27-3-2020). 
2. Subs. by Act 21 of 1998, s. 101, for section 53 to 55 (w.e.f. 1-8-1998). 
3. Subs. by Act 28 of 2016, s. 123, for section 53 (w.e.f. 14-5-2016). 
4. Subs. by Act 13 of 2018, s. 56, for “import manifest” (w.e.f. 28-3-2018). 
5. Subs. by s. 81, ibid., for “the prescribed form” (w.e.f. 28-3-2018). 
6. Ins. by Act 27 of 1999, s. 106 (w.e.f. 11-5-1999). 

57 

 
                                                           
(2) Subject  to  the  provisions  of  section  11,  where  any  goods  imported  into  a  customs  station  are 
mentioned  in  the  1[arrival  manifest  or  import  manifest]  or  the import  report, as  the  case  may  be,  as 
for transhipment to  any  place  outside  India,  such  goods  may  be  allowed  to  be  so  transhipped  without 
payment of duty. 

(3) Where any goods imported into a customs station are mentioned in the 1[arrival manifest or import 

manifest] or the import report, as the case may be, as for transhipment— 

(a) to any major port as defined in the Indian Ports Act, 1908 (15 of 1908), or the customs airport 
at Mumbai, Calcutta, Delhi or Chennai or any other customs port or customs airport which the Board 
may, by notification in the Official Gazette, specify in this behalf, or 

(b) to any  other  customs  station  and  the  proper  officer  is  satisfied  that  the  goods  are bona 

fide intended for transhipment to such customs station, 

the proper  officer  may  allow  the  goods  to  be  transhipped,  without  payment  of  duty,  subject  to  such 
conditions  as  may  be  prescribed  for  the  due  arrival  of  such  goods  at  the  customs  station  to 
which transhipment is allowed. 

55. Liability of duty on goods transited under section 53 or transhipped under section 54.—Where 
any goods are allowed to be transited under section 53 or transhipped under sub-section (3) of section 54 
to any customs station, they shall, on their arrival at such station, be liable to duty and shall be entered in 
like manner as goods are entered on the first importation thereof and the provisions of this Act and any 
rules and regulations shall, so far as may be, apply in relation to such goods.] 

56. Transport of certain classes of goods subject to prescribed conditions.—Imported goods may 
be transported without payment of duty from one land customs station to another, and any goods may be 
transported from one part of India to another part through any foreign territory, subject to such conditions 
as may be prescribed for the due arrival of such goods at the place of destination. 

CHAPTER IX 

WAREHOUSING 

       2[57. Licensing of public warehouses.—The Principal Commissioner of Customs or Commissioner 
of  Customs  may,  subject  to  such  conditions  as  may  be  prescribed,  licence  a  public  warehouse  wherein 
dutiable goods may be deposited.] 

3[58. Licensing of private warehouses.—The Principal Commissioner of Customs or Commissioner 
of Customs may, subject to such conditions as may  be prescribed, licence a private warehouse wherein 
dutiable goods imported by or on behalf of the licensee may be deposited. 

58A.  Licensing  of  Special  warehouses.—(1)  The  Principal  Commissioner  of  Customs  or 
Commissioner  of  Customs  may,  subject  to  such  conditions  as  may  be  prescribed,  licence  a  special 
warehouse wherein dutiable goods may be deposited and such warehouse shall be caused to be locked by 
the  proper  officer  and no person  shall  enter  the  warehouse  or  remove  any  goods  therefrom  without the 
permission of the proper officer. 

(2) The Board may, by notification in the Official Gazette, specify the class of goods which shall be 

deposited in the special warehouse licensed under sub-section (1). 

58B. Cancellation of licence.—(1) Where a licensee contravenes any of the provisions of this Act or 
the rules  or  regulations  made  thereunder  or breaches any  of the conditions  of  the  licence,  the  Principal 
Commissioner of Customs or Commissioner of Customs may cancel the licence granted under section 57 
or section 58 or section 58A: 

1. Subs. by Act 13 of 2018, s. 56, for “import manifest” (w.e.f. 28-3-2018). 
2. Subs. by Act 28 of 2016, s. 124, for section 57 (w.e.f. 14-5-2016). 
3. Subs. by s. 125, ibid., for section 58 (w.e.f. 14-5-2016). 

58 

 
 
                                                           
Provided that before any licence is cancelled, the licensee shall be given a reasonable opportunity of 

being heard. 

(2) The Principal Commissioner of Customs or Commissioner of Customs may, without prejudice to any 
other action that may be taken against the licensee and the goods under this Act or any other law for the time 
being  in  force,  suspend  operation  of  the  warehouse  during  the  pendency  of  an  enquiry  under  
sub-section (1). 

(3) Where the operation of a warehouse is suspended under sub-section (2), no goods shall be deposited 

in such warehouse during the period of suspension: 

Provided that the provisions of this Chapter shall continue to apply to the goods already deposited in 

the warehouse. 

(4) Where the licence issued under section 57 or section 58 or section 58A is cancelled, the goods 
warehoused shall, within seven days from the date on which order of such cancellation is served on the 
licensee or within such extended period as the proper officer may allow, be removed from such warehouse 
to another warehouse or be cleared for home consumption or export: 

Provided that the provisions of this Chapter shall continue to apply to the goods already deposited in 
the warehouse till they are removed to another warehouse or cleared for home consumption or for export, 
during such period.] 

1[59.  Warehousing  bond.—The  importer  of  any  goods  in  respect  of  which  a  bill  of  entry  for 
warehousing has been presented under section 46 and assessed to duty under section 17 or section 18 shall 
execute a bond in a sum equal to thrice the amount of the duty assessed on such goods, binding himself–– 

(a) to comply with all the provisions of the Act and the rules and regulations made thereunder in 

respect of such goods; 

(b) to pay, on or before the date specified in the notice of demand, all duties and interest payable 

under sub-section (2) of section 61; and 

(c) to pay all penalties and fines incurred for the contravention of the provisions of this Act or the 

rules or regulations, in respect of such goods. 

(2)  For  the  purposes  of  sub-section  (1),  the  Assistant  Commissioner  of  Customs  or  Deputy 
Commissioner  of  Customs  may  permit  an  importer  to  execute  a  general  bond  in  such  amount  as  the 
Assistant Commissioner of Customs or Deputy Commissioner of Customs may approve in respect of the 
warehousing of goods to be imported by him within a specified period. 

(3) The importer shall, in addition to the execution of a bond under sub-section (1) or sub-section (2), 

furnish such security as may be prescribed. 

(4) Any bond executed under this section by an importer in respect of any goods shall continue to be in 

force notwithstanding the transfer of the goods to another warehouse. 

(5) Where the whole of the goods or any part thereof are transferred to another person, the transferee shall 
execute a bond in the manner specified in sub-section (1) or sub-section (2) and furnish security as specified 
under sub-section (3).] 

1. Subs. by Act 28 of 2016, s. 126, for section 59 (w.e.f. 14-5-2016). 

59 

 
                                                           
59A. [Conditions for warehousing of certain goods.] Omitted by The Finance Act, 1994 (32 of 1994), 

s. 60 (w.e.f. 13-5-1994).  

1[60. Permission  for  removal  of  goods  for  deposit  in  warehouse.—(1)  When  the  provisions  of 
section  59  have  been  complied  with  in  respect  of  any  goods,  the  proper  officer  may  make  an  order 
permitting removal of the goods from a customs station for the purpose of deposit in a warehouse. 

2[Provided that such order may also be made electronically through the customs automated system on 

the basis of risk evaluation through appropriate selection criteria.] 

(2) Where an order is made under sub-section (1), the goods shall be deposited in a warehouse in such 

manner as may be prescribed.] 

3[61.  Period for which goods may remain warehoused.—(1) Any warehoused goods may remain in 

the warehouse in which they are deposited or in any warehouse to which they may be removed,–– 

(a)   in  the  case  of  capital  goods  intended  for  use  in  any  hundred  per  cent.  export  oriented 
undertaking, till the in the case of capital goods intended for use in any hundred per cent. export oriented 
undertaking  or  electronic  hardware  technology  park  unit  or  software  technology  park  unit  or  any 
warehouse wherein manufacture or other operations have been permitted under section 65, till their 
clearance from the warehouse; 

(b) in the case of goods other than capital goods intended for use in any hundred per cent. export oriented 
undertaking or electronic hardware technology park unit or software technology park unit or any warehouse 
wherein manufacture or other operations have been permitted under section 65, till their consumption or 
clearance from the warehouse; and 

(c) in the case of any other goods, till the expiry of one year from the date on which the proper 

officer has made an order under sub-section (1) of section 60: 
Provided that in the case of any goods referred to in this clause, the Principal Commissioner of Customs 
or Commissioner of Customs may, on sufficient cause being shown, extend the period for which the goods 
may remain in the warehouse, by not more than one year at a time: 

Provided further that where such goods are likely to deteriorate, the period referred to in the first proviso 
may be reduced by the Principal Commissioner of Customs or Commissioner of Customs to such shorter 
period as he may deem fit. 

(2)  Where  any  warehoused  goods  specified  in  clause  (c)  of  sub-section  (1)  remain  in  a  warehouse 
beyond  a  period  of  ninety  days  from  the  date  on  which  the  proper  officer  has  made  an  order  under  
sub-section  (1)  of  section  60,  interest  shall  be  payable  at  such  rate  as  may  be  fixed  by  the  Central 
Government under section 47, on the amount of duty payable at the time of clearance of the goods, for the 
period from the expiry of the said ninety days till the date of payment of duty on the warehoused goods: 

Provided that if the Board considers it necessary so to do, in the public interest, it may,–– 

(a) by order, and under the circumstances of an exceptional nature, to be specified in such order, 
waive the whole or any part of the interest payable under this section in respect of any warehoused 
goods; 

(b) by notification in the Official Gazette, specify the class of goods in respect of which no interest 

shall be charged under this section; 

(c) by notification in the Official Gazette, specify the class of goods in respect of which the interest 
shall  be  chargeable  from  the  date  on  which  the  proper  officer  has  made  an  order  under  
sub-section (1) of section 60. 

Explanation.––For the purposes of this section,–– 

(i) “electronic hardware technology park unit” means a unit established under the Electronic 

Hardware Technology Park Scheme notified by the Government of India; 

1. Subs. by Act 28 of 2016, s. 127, for section 60 (w.e.f. 14-5-2016). 
2. The proviso ins. by Act 13 of 2018, s. 82 (w.e.f. 28-3-2018). 
3. Subs. by Act 28 of 2016, s. 128, for section 61 (w.e.f. 14-5-2016). 

60 

 
                                                           
(ii)  “hundred per cent. export oriented undertaking” has the same meaning as in clause (ii) of 

Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944); and 

(iii) “software technology park unit” means a unit established under the Software Technology 

Park Scheme notified by the Government of India.] 

62.   [Control over warehoused goods.] Omitted by The Finance Act, 2016 (28 of 2016), s. 129 (w.e.f. 

14-5-2016). 

63.  [Payment of rent and warehouse charges.] Omitted by s. 129, ibid. (w.e.f. 14-5-2016). 
1[64. Owner’s right to deal with warehoused goods.—The owner of any warehoused goods may, after 

warehousing the same,–– 

(a) inspect the goods; 
(b) deal with their containers in such manner as may be necessary to prevent loss or deterioration 

or damage to the goods; 
(c) sort the goods; or 
(d) show the goods for sale.] 

65.  Manufacture  and  other  operations  in  relation  to  goods  in  a  warehouse.—(1)  2[With  the 
permission of the Principal Commissioner of Customs or Commissioner of Customs and subject to such 
conditions] as may be prescribed, the owner of any warehoused goods may carry on  any manufacturing 
process or other operations in the warehouse in relation to such goods. 

(2)  Where  in  the  course  of  any  operations  permissible  in  relation  to  any  warehoused  goods  under  

sub-section (1), there is any waste or refuse, the following provisions shall apply:— 

(a) if the whole or any part of the goods resulting from such operations are exported, import duty 
shall be remitted on the quantity of the warehoused goods contained in so much of the waste or refuse 
as has arisen from the operations carried on in relation to the goods exported: 

Provided that such waste or refuse is either destroyed or duty is paid on such waste or refuse as if 

it had been imported into India in that form; 

(b)  if  the  whole  or  any  part  of  the  goods  resulting  from  such  operations  are  cleared  from  the 
warehouse  for  home  consumption,  import  duty  shall be  charged  on  the  quantity  of  the  warehoused 
goods contained in so much of the waste or refuse as has arisen from the operations carried on in relation 
to the goods cleared for home consumption. 
 66.   Power to exempt imported materials used in the manufacture of goods in warehouse.—If 
any imported materials are used in accordance with the provisions of section 65 for the manufacture of any 
goods  and  the  rate  of  duty leviable on  the  imported  materials  exceeds  the  rate  of  duty leviable on  such 
goods, the Central Government, if satisfied that in the interests of the establishment or development of any 
domestic industry it is necessary so to do, may, by notification in the Official Gazette, exempt the imported 
materials from the whole or part of the excess rate of duty. 

67.  Removal of goods from one warehouse to another.—The owner of any warehoused goods may, 
with the permission of the proper officer, remove them from one warehouse to another, 3*** subject to such 
conditions as may be prescribed for the due arrival of the warehoused goods at the warehouse to which 
removal is permitted. 

 68.  Clearance  of warehoused  goods for  home  consumption.—4[Any  warehoused  goods  may  be 

cleared from the warehouse] for home consumption, if— 

(a)   a  bill  of  entry  for  home  consumption  in  respect  of  such  goods  has  been  presented  in  the 

prescribed form; 

1. Subs. by Act 28 of 2016, s. 130, for section 64 (w.e.f. 14-5-2016). 
2. Subs. by s. 131, ibid., for certain words (w.e.f. 14-5-2016). 
3. The words “without payment of duty” omitted by Act 55 of 1991, s. 5 (w.e.f. 23-12-1991). 
4. Subs. by Act 28 of 2016, s. 132, for “The importer of any warehoused goods may clear them” (w.e.f. 14-5-2016). 

61 

 
                                                           
1[(b) the import duty, interest, fine and penalties payable in respect of such goods have been paid; 

and] 

(c) an order for clearance of such goods for home consumption has been made by the proper officer. 
 2[  3[Provided that  the  order  referred  to  in  clause  (c)  may  also  be  made  electronically  through  the 

customs automated system on the basis of risk evaluation through appropriate selection criteria: 

Provided  further  that]  the  owner  of  any  warehoused  goods  may,  at  any  time  before  an  order  for 
clearance of goods for home consumption has been made in respect of such goods, relinquish his title to 
the  goods  upon  payment  of  4***  penalties  that  may  be  payable  in  respect  of  the  goods  and  upon  such 
relinquishment, he shall not be liable to pay duty thereon:] 

5[ 6[Provided also that] the owner of any such warehoused goods shall not be allowed to relinquish his 
title to such goods regarding which an offence appears to have been committed under this Act or any other 
law for the time being in force.] 

69.   Clearance of warehoused goods for 7[export].—(1) Any warehoused goods may be exported to 

a place outside India without payment of import duty if— 

8[(a) a shipping bill or a bill of export or the form as prescribed under section 84 has been presented 

in respect of such goods;] 

9[(b) the export duty, fine and penalties payable in respect of such goods have been paid; and] 
(c)   an order for clearance of such goods for 7[export] has been made by the proper officer. 

10[Provided that the order referred to in clause (c) may also be made electronically through the customs 

automated system on the basis or risk evaluation through appropriate selection criteria.] 

 (2)   Notwithstanding anything contained in sub-section (1), if the Central Government is of opinion 
that warehoused goods of any specified description are likely to be smuggled back into India, it may, by 
notification in the Official Gazette, direct that such goods shall not be exported to any place outside India 
without payment of duty or may be allowed to be so exported subject to such restrictions and conditions as 
may be specified in the notification. 

70.  Allowance  in  case  of  volatile  goods.—(1)  When  any  warehoused  goods  to  which  this  section 
applies are at the time of delivery from a warehouse found to be deficient in quantity on account of natural 
loss, the 11[Assistant Commissioner of Customs or Deputy Commissioner of Customs] may remit the duty 
on such deficiency. 

(2) This section applies to such warehoused goods as the Central Government, having regard to the 
volatility of the goods and the manner of their storage, may, by notification in the Official Gazette, specify. 
71.  Goods not to be taken out of warehouse except as provided by this Act.—No warehoused goods 
shall be taken out of a warehouse except on clearance for home consumption or 12[export], or for removal 
to another warehouse, or as otherwise provided by this Act. 

72.  Goods improperly removed from warehouse, etc.—(1) In any of the following cases, that is to 

say,— 

(a) where any warehoused goods are removed from a warehouse in contravention of section 71; 
(b) where any warehoused goods have not been removed from a warehouse at the expiration of the 

period during which such goods are permitted under section 61 to remain in a warehouse; 

1. Subs. by Act 32 of 2003, s. 132, for clause (b) (w.e.f. 14-5-2016). 
2. Ins. by s. 114, ibid., (w.e.f. 14-5-2003). 
3. Subs. by Act 13 of 2018, s. 83, for “Provided that” (w.e.f. 28-3-2018). 
4. The words “rent, interest, other charges and” omitted by Act 28 of 2016, s. 132 (w.e.f. 14-5-2016). 
5. Ins. by Act 21 of 2006, s. 59 (w.e.f. 18-4-2006). 
6. Subs. by Act 13 of 2018, s. 83, for “Provided further that” (w.e.f. 28-3-2018). 
7. Subs. by Act 28 of 2016, s. 133, for “exportation” (w.e.f. 14-5-2016). 
8. Subs. by Act 7 of 2017, s. 103, for clause (a) (w.e.f. 31-3-2017). 
9. Subs. by Act 28 of 2016, s. 133, for clause (b) (w.e.f. 14-5-2016). 
10. The proviso ins. by Act 13 of 2018, s. 84 (w.e.f. 28-3-2018). 
11. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999).  
12. Subs. by Act 28 of 2016, s. 134, for “re-exportation” (w.e.f. 14-5-2016). 

62 

 
 
                                                           
* 

1* 
(d) where any goods in respect of which a bond has been executed under  2[section 59 3*** ] and 
which have not been cleared for home consumption or  4[export or] are not duly accounted for to the 
satisfaction of the proper officer, 

* 

* 

* 

the proper officer may demand, and the owner of such goods shall forthwith pay, the full amount of duty 
chargeable on account of such goods together with 5[interest, fine and penalties] payable in respect of such 
goods 

(2)   If any owner fails to pay any amount demanded under sub-section (1), the proper officer may, 
without prejudice to any other remedy, cause to be detained and sold, after notice to the owner (any transfer 
of the goods notwithstanding) such sufficient portion of his goods, if any, in the warehouse, as the said 
officer may 6[deem fit]. 

73. Cancellation and return of warehousing bond.—When the whole of the goods covered by any 
bond  executed  under  8[section  59  9***]  have  been  cleared  for  home  consumption  or  exported  or 
7[transferred or] are otherwise duly accounted for, and when all amounts due on account of such goods have 
been paid, the proper officer shall cancel the bond as discharged in full, and shall on demand deliver it, so 
cancelled, to the person who has executed or is entitled to receive it. 

8[73A.  Custody  and  removal  of warehoused  goods.—(1) All warehoused goods shall remain in the 
custody of the person who has been granted a licence under section 57 or section 58 or section 58A until they 
are  cleared  for  home  consumption  or  are  transferred  to  another  warehouse  or  are  exported  or  removed  as 
otherwise provided under this Act. 

(2) The responsibilities of the person referred to in sub-section (1) who has custody of the warehoused 

goods shall be such as may be prescribed. 

(3) Where any warehoused goods are removed in contravention of section 71, the licensee shall be 
liable to pay duty, interest, fine and penalties without prejudice to any other action that may be taken against 
him under this Act or any other law for the time being in force.] 

CHAPTER X 

DRAWBACK 

74. Drawback allowable on re-export of duty-paid goods.—(1) When any goods capable of being 
easily  identified  which  have  been  imported  into  India  and  upon  which  9[any  duty  has  been  paid  on 
importation,— 

(i) are entered for export and the proper officer makes an order permitting clearance and loading of 

the goods for exportation under section 51; or 

(ii) are to be exported as baggage and the owner of such baggage, for the purpose of clearing it, 
makes a declaration of its contents to the proper officer under section 77 (which declaration shall be 
deemed  to  be  an  entry  for export for  the  purposes  of this  section)  and  such  officer  makes  an order 
permitting clearance of the goods for exportation; or 

(iii) are entered for export by post under 10[clause (a) of section 84] and the proper officer makes 

an order permitting clearance of the goods for exportation, 

1. Clause (c) omitted by Act 28 of 2016, s. 135 (w.e.f. 14-5-2016). 
2. Subs. by Act 55 of 1991, s. 9, for “section 59” (w.e.f. 23-12-1991). 
3. The words, figures and letter “or section 59A” omitted by Act 32 of 1994, s. 60 (w.e.f. 13-5-1994). 
4.  Subs. by Act 28 of 2016, s. 135, for “exportation” (w.e.f. 14-5-2016). 
5. Subs. by s. 135, ibid., for “all penalties, rent, interest and other charges” (w.e.f. 14-5-2016). 
6. Subs. by s. 135, ibid., for “select” (w.e.f. 14-5-2016). 
7. Ins. by Act 28 of 2016, s. 136 (w.e.f. 14-5-2016). 
8. Ins. by s. 137, ibid. (w.e.f. 14-5-2016). 
9. Subs. by Act 80 of 1985, s. 6, for certain words (w.e.f. 27-12-1985). 
10. Subs. by Act 13 of 2018, s. 85, for “section 82” (w.e.f. 28-3-2018). 

63 

 
 
 
 
 
 
 
 
                                                           
ninety-eight per cent. of such duty shall, except as otherwise hereinafter provided, be re-paid as drawback, 
if—] 

(a)  the  goods  are  identified  to  the  satisfaction  of  the 1[Assistant  Commissioner  of  Customs  or 

Deputy Commissioner of Customs] as the goods which were imported; and 

(b) the  goods  are  entered  for  export  within  two  years  from  the  date  of  payment  of  duty  on  the 

importation thereof: 

Provided that in any particular case the aforesaid period of two years may, on sufficient cause being 

shown, be extended by the Board by such further period as it may deem fit. 

(2) Notwithstanding anything contained in sub-section (1), the rate of drawback in the case of goods 
which have been used after the importation thereof shall be such as the Central Government, having regard 
to the duration of use, depreciation in value and other relevant circumstances, may, by notification in the 
Official Gazette, fix. 

 2[(3) The Central Government may make rules for the purpose of carrying out the provisions of this 

section and, in particular, such rules may— 

(a) provide for the manner in which the identity of goods imported in different consignments which 

are ordinarily stored together in bulk, may be established; 

(b) specify the goods which shall be deemed to be not capable of being easily identified; and 

(c) provide for the manner and the time within which a claim for payment of drawback is to be 

filed.] 

(4) For the purposes of this section— 

(a) goods shall be deemed to have been entered for export on the date with reference to which the 

rate of duty is calculated under section 16; 

(b) in the case of goods assessed to duty provisionally under section 18, the date of payment of the 

provisional duty shall be deemed to be the date of payment of duty. 

75.  Drawback  on  imported  materials  used  in  the  manufacture  of  goods  which  are  
exported.—(1)  Where  it  appears  to  the  Central  Government  that  in  respect  of  goods  of  any  class  or 
description 3[manufactured, processed or on which any operation has been carried out in India] 4[, being 
goods which have been entered for export and in respect of which an order permitting the clearance and 
loading thereof for exportation has been made under section 51 by the proper officer], 5[or being goods 
entered for export by post under  6[clause (a) of section 84] and in respect of which an order permitting 
clearance for exportation has been made by the proper officer], a drawback should be allowed of duties of 
customs  chargeable  under  this  Act  on  any  imported  materials  of  a  class  or  description  used  in  the 
7[manufacture  or  processing  of  such  goods  or  carrying  out  any  operation  on  such  goods],  the  Central 
Government may, by notification in the Official Gazette, direct that drawback shall be allowed in respect 
of such goods in accordance with, and subject to, the rules made under sub-section (2): 

8[Provided that no drawback shall be allowed under this sub-section in respect of any of the aforesaid 
goods which the Central Government may, by rules made under sub-section (2), specify, if the export value 
of such goods or class of goods is less than the value of the imported materials used in the 7[manufacture 
or processing of such goods or carrying out any operation on such goods] or class of goods, or is not more 
than such percentage of the value of the imported materials used in the 7[manufacture or processing of such 
goods or carrying out any operation on such goods] or class of goods as the Central Government may, by 
notification in the Official Gazette, specify in this behalf: 

1. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
2. Subs. by Act 22 of 1995, s. 60, for sub-section (3) (w.e.f. 26-5-1995). 
3. Subs. by Act 22 of 1995, s. 61, for “manufactured in India” (w.e.f. 26-5-1995). 
4. Subs. by Act 11 of 1983, s. 52, for “and exported to any place outside India,” (w.e.f. 13-5-1983). 
5. Ins. by Act 80 of 1985, s. 7 (w.e.f. 13-5-1983). 
6. Subs. by Act 13 of 2018, s. 86, for “section 82” (w.e.f. 28-3-2018). 
7. Subs. by Act 22 of 1995, s. 61, for “manufacture of such goods” (w.e.f. 26-5-1995). 
8. Ins. by Act 49 of 1991, s. 120 (w.e.f. 27-9-1991). 

64 

 
                                                           
Provided further that where any drawback has been allowed on any goods under this sub-section and 
the sale proceeds in respect of such goods are not received by or on behalf of the exporter in India within 
the  time  allowed  under  the 1[Foreign  Exchange  Management  Act,  1999  (42  of  1999)],  such  drawback 
shall 2[except  under  such  circumstances  or  such  conditions  as  the  Central  Government  may,  by  rule, 
specify,] be deemed never to have been allowed and the Central Government may, by rules made under 
sub-section (2), specify the procedure for the recovery or adjustment of the amount of such drawback.] 

3[(1A) Where it appears to the Central Government that the quantity of a particular material imported 
into India is more than the total quantity of like material that has been used in the goods  4[manufactured, 
processed or on which any operation has been carried out in India] and exported outside India, then, the 
Central Government may, by notification in the Official Gazette, declare that so much of the material as is 
contained  in  the  goods  exported  shall,  for  the  purpose  of  sub-section  (1),  be  deemed  to  be  imported 
material.] 

 (2)   The  Central  Government  may  make  rules  for  the  purpose  of  carrying  out  the  provisions  of  

sub-section (1) and, in particular, such rules may provide— 

5[(a)  for  the  payment  of  drawback  equal  to  the  amount  of  duty  actually  paid  on  the  imported 
materials used in the manufacture or processing of the goods or carrying out any operation on the goods 
or  as  is  specified  in  the  rules  as  the  average  amount  of  duty  paid  on  the  materials  of  that  class  or 
description used in the manufacture or processing of export goods or carrying out any operation on 
export goods of that class or description either by manufacturers generally or by persons processing or 
carrying on any operation generally or by any particular manufacturer or particular person carrying on 
any process or other operation, and interest if any payable thereon;] 

 6[(aa) for specifying the goods in respect of which no drawback shall be allowed; 

(ab) for specifying the procedure for recovery or adjustment of the amount of any drawback which 

had been allowed under sub-section (1) 7[or interest chargeable thereon];] 

(b) for the production of such certificates, documents and other evidence in support of each claim 

of drawback as may be necessary; 

(c) for requiring the 8[manufacturer or the person carrying out any process or other operation] to 
give access to every part of his manufactory to any officer of customs specially authorised in this behalf 
by  the 9[Assistant  Commissioner  of  Customs  or  Deputy  Commissioner  of  Customs]  to  enable  such 
authorised officer to inspect the processes of 8[manufacture, process or any other operation carried out] 
and to verify by actual check or otherwise the statements made in support of the claim for drawback. 

10[(d) for the manner and the time within which the claim for payment of drawback may be filed;] 

10[(3) The power to make rules conferred by sub-section (2) shall include the power to give drawback 
with retrospective effect from a date not earlier than the date of changes in the rates of duty on inputs used 
in the export goods.] 

1. Subs. by Act 20 of 2002, s. 125, for “Foreign Exchange Regulation Act, 1973 (46 of 1973)” (w.e.f. 11-5-2002). 
2. Ins. by Act 8 of 2011, s. 46 (w.e.f. 8-4-2011). 
3. Ins. by Act 25 of 1978, s. 10 (w.e.f. 1-7-1978). 
4. Subs. by Act 22 of 1995, s. 61, for “manufactured in India” (w.e.f. 26-5-1995). 
5. Subs. by s. 61, ibid., for clause (a) (w.e.f. 26-5-1995). 
6. Ins. by Act 49 of 1991, s. 120 (w.e.f. 27-9-1991). 
7. Ins. by Act 22 of 1995, s. 61 (w.e.f. 26-5-1995). 
8. Subs. by Act 22 of 1995, s. 61, for “manufacturer” (w.e.f. 26-5-1995). 
9. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
10. Ins. by s. 61, ibid. (w.e.f. 26-5-1995). 

65 

 
 
 
                                                           
1[75A. Interest on drawback.—(1) Where any drawback payable to a claimant under section 74 or 
section 75 is not paid within a 2[period of 3[one month]] from the date of filing a claim for payment of such 
drawback, there shall be paid to that claimant in addition to the amount of drawback, interest at the rate 
fixed under section 27A from the date after the expiry of the said 8[period of 9[one month]] till the date of 
payment of such drawback: 

* 

4* 
5[(2)  Where  any  drawback  has  been  paid  to  the  claimant  erroneously  or  it  becomes  otherwise 
recoverable under this Act or the rules made thereunder, the claimant shall, within a period of two months 
from  the  date  of  demand,  pay  in  addition  to  the  said  amount  of  drawback,  interest  at  the  rate  fixed 
under 6[section 28AA] and the amount of interest shall be calculated for the period beginning from the date 
of payment of such drawback to the claimant till the date of recovery of such drawback.] 

* 

* 

* 

76. Prohibition  and  regulation  of  drawback 

in  certain  cases.—(1)  Notwithstanding                            

anything hereinbefore contained, no drawback shall be allowed— 
* 

7* 
* 
(b)  in respect of any goods the market-price of which is less than the amount of drawback due 

* 

* 

thereon; 

(c)  where the drawback due in respect of any goods is less than 8[fifty rupees]. 

(2)  Without prejudice to the provisions of sub-section (1), if the Central Government is of opinion that 
goods of any specified description in respect of which drawback may be claimed under this Chapter are 
likely to be smuggled back into India, it may, by notification in the Official Gazette, direct that drawback 
shall not be allowed in respect of such goods or may be allowed subject to such restrictions and conditions 
as may be specified in the notification. 

9***** 
76A. [Notification of special economic zone.] Omitted by the Finance Act, 2007 (22 of 2007), s. 99 

(w.e.f. 11-5-2007).  

76B. [Application of provisions.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76C. [Establishment and control.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76D. [Admission of goods.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76E. [Exemption from duties of customs.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76F. [Levy of duties of customs.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76G. [Authorised operations.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76H. [Goods utilised with a special economic zone.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76-I. [Drawback on goods admitted to a special economic zone.] Omitted by s. 99, ibid. (w.e.f. 11-5-

2007). 

76J. [Duration of stay.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76K. [Security.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 
76L. [Transfer of ownership.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 

76M. [Removal of goods.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 

76N. [Closure of a special economic zone.] Omitted by s. 99, ibid. (w.e.f. 11-5-2007). 

1. Ins. by s. 62, ibid. (w.e.f. 26-5-1995). 
2. Subs. by Act 8 of 1999, s. 2, for “period of three months” (w.e.f. 8-1-1999). 
3. Subs. by Act 32 of 2003, s. 115, for “two months” (w.e.f. 14-5-2003). 
4. The proviso omitted by s. 115, ibid. (w.e.f. 14-5-2003). 
5. Subs. by Act 22 of 2007, s. 98, for sub-section (2) (w.e.f. 11-5-2007). 
6. Subs. by Act 23 of 2012, s. 125, for “section 28AB” (w.e.f. 8-4-2011). 
7. Clause (a) omitted by Act 11 of 1983, s. 53 (w.e.f. 13-5-1983). 
8. Subs. by Act 11 of 1983, s. 53, for “five rupees” (w.e.f. 13-5-1983). 
9. Chapter XA (containing sections 76A to 76N) omitted by Act 22 of 2007, s. 99 (w.e.f. 11-5-2007). Earlier Chapter XA inserted 
by vide Notification No. 43/2003-Cus. (N.T.) (w.e.f. 11-5-2004) dated 22-7-2003 read with notification No. 62/2003-Cus (N.T.), 
dated 14-8-2003; No. 84/2003-Cus. (N.T.), dated 14-10-2003; No. 105/2003-Cus. (N.T.), dated 29-11-2003 and No. 116/2003-
Cus. (N.T.), dated 31-12-2003; No. 25/2004-Cus. (N.T.), dated 28-2-2004; No. 46/2004-Cus. (N.T.), dated 31-3-2004 and No. 
57/2004-Cus. (N.T.), dated 30-4-2004) by s. 126 of the Finance Act, 2002 (20 of 2002).    

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
CHAPTER XI 
SPECIAL PROVISIONS REGARDING BAGGAGE, GOODS IMPORTED OR EXPORTED  
BY 1[POST, COURIER] AND STORES 

Baggage 

77. Declaration by owner of baggage.—The owner of any baggage shall, for the purpose of clearing 

it, make a declaration of its contents to the proper officer. 

78.  Determination of rate of duty and tariff valuation in respect of baggage.—The rate of duty and 
tariff valuation, if any, applicable to baggage shall be the rate and valuation in force on the date on which 
a declaration is made in respect of such baggage under section 77. 

79. Bona fide baggage exempted from duty.—(1) The proper officer may, subject to any rules made 

under sub-section (2), pass free of duty— 

(a) any article in the baggage of a passenger or a member of the crew in respect of which the said 
officer is satisfied that it has been in his use for such minimum period as may be specified in the rules; 
(b) any article in the baggage of a passenger in respect of which the said officer is satisfied that it 
is for the use of the passenger or his family or is a bona fide gift or souvenir; provided that the value of 
each such article and the total value of all such articles does not exceed such limits as may be specified 
in the rules. 
(2)  the  Central  Government  may  make  rules  for  the  purpose  of  carrying  out  the  provisions  of  this 

section and, in particular, such rules may specify— 

(a) the minimum period for which any article has been used by a passenger or a member of the 

crew for the purpose of clause (a) of sub-section (1); 

(b) the maximum value of any individual article and the maximum total value of all the articles 

which may be passed free of duty under clause (b) of sub-section (1); 

(c)   the conditions (to be fulfilled before or after clearance) subject to which any baggage may be 

passed free of duty. 
(3) Different rules may be made under sub-section (2) for different classes of persons. 
80. Temporary detention of baggage.—Where the baggage of a passenger contains any article which 
is dutiable or the import of which is prohibited and in respect of which a true declaration has been made 
under section 77, the proper officer may, at the request of the passenger, detain such article for the purpose 
of being returned to him on his leaving India 2[and if for any reason, the passenger is not able to collect the 
article  at  the  time  of  his  leaving  India,  the  article  may  be  returned  to  him  through  any  other 
passenger authorised by him and leaving India or as cargo consigned in his name]. 

81.  Regulations in respect of baggage.—The Board may make regulations,— 
(a) providing for the manner of declaring the contents of any baggage; 
(b) providing for the custody, examination, assessment to duty and clearance of baggage; 
(c) providing for the transit or transhipment of baggage from one customs station to another or to 

a place outside India. 

Goods imported or exported by post 

82. [Label or declaration accompanying goods to be treated as entry.] Omitted by the Finance Act, 

2017 (7 of 2017), s. 104 (w.e.f. 31-3-2017). 

83.  Rate  of  duty  and  tariff  valuation  in  respect  of  goods  imported  or  exported  by  3[post  or 
courier].—(1)  The  rate  of  duty  and  tariff  value,  if  any,  applicable  to  any  goods  imported  by  2[post  or 
courier] shall be the rate and valuation in force on the date on which the 4[postal authorities or the authorised 
courier]  present  to  the  proper  officer  a  list  containing  the  particulars  of  such  goods  for  the  purpose  of 
assessing the duty thereon: 

1. Subs. by Act 13 of 2018, s. 87, for “POST” (w.e.f. 28-3-2018). 
2. Ins. by Act 22 of 1995, s. 63 (w.e.f. 26-5-1995). 
3. Subs. by Act 13 of 2018, s. 88, for “post” (w.e.f. 28-3-2018). 
4. Subs. by s. 88, ibid., for “postal authorities” (w.e.f. 28-3-2018). 

67 

 
                                                           
 
Provided that if such goods are imported by a vessel and the list of the goods containing the particulars 
was presented before the date of the arrival of the vessel, it shall be deemed to have been presented on the 
date of such arrival. 

(2)   The rate of duty and tariff value, if any, applicable to any goods exported by  2[post or courier] 
shall be the rate and valuation in force on the date on which the exporter delivers such goods to the 3[postal 
authorities or the authorised courier] for exportation. 

84.  Regulations regarding goods imported or to be exported by  1[post or courier].—The Board 

may make regulations providing for— 

2[(a) the form and manner in which an entry may be made in respect of goods imported or to be 

exported by 4[post or courier];] 

(b)  the  examination, assessment  to  duty,  and  clearance  of  goods imported  or  to be  exported  by 

4[post or courier]; 

(c) the transit or transhipment of goods imported by 4[post or courier], from one customs station to 

another or to a place outside India. 

Stores 

85.  Stores may be allowed to be warehoused without assessment to duty.—Where any imported 
goods are entered for warehousing and the importer makes and subscribes to a declaration that the goods 
are to be supplied as stores to vessels or aircrafts without payment of import duty under this Chapter, the 
proper officer may permit the goods to be warehoused without the goods being assessed to duty. 

86. Transit and transhipment of stores.—(1) Any stores imported in a vessel or aircraft may, without 

payment of duty, remain on board such vessel or aircraft while it is in India. 

(2)   Any  stores  imported  in  a  vessel  or  aircraft  may,  with  the  permission  of  the  proper  officer,  be 
transferred  to  any  vessel  or  aircraft  as  stores  for  consumption  therein  as  provided  in  section  87  or  
section 90. 

87. Imported stores may be consumed on board a foreign-going vessel or aircraft.—Any imported 
stores on board a vessel or aircraft (other than stores to which section 90 applies) may, without payment of 
duty, be consumed thereon as stores during the period such vessel or aircraft is a foreign-going vessel or 
aircraft. 

88. Application of section 69 and Chapter X to stores.—The provisions of section 69 and Chapter X 
shall apply to stores (other than those to which section 90 applies) as they apply to other goods, subject to 
the modifications that— 

(a)  for the  words  “exported  to  any  place  outside  India”  or the  word  “exported”,  wherever  they 

occur, the words “taken on board any foreign-going vessel or aircraft as stores” shall be substituted; 

(b) in the case of drawback on fuel and lubricating oil taken on board any foreign-going aircraft as 
stores, sub-section (1) of section 74 shall have effect as if for the words “ninety-eight per cent”, the 
words “the whole” were substituted. 
89.  Stores  to  be free  of  export  duty.—Goods  produced  or  manufactured  in  India  and  required  as 
stores on any foreign-going vessel or aircraft may be exported free of duty in such quantities as the proper 
officer may determine, having regard to the size of the vessel or aircraft, the number of passengers and crew 
and the length of the voyage or journey on which the vessel or aircraft is about to depart. 

90. Concessions  in  respect  of  imported  stores  for  the  Navy.—(1)  Imported  stores  specified  in  

sub-section (3) may without payment of duty be consumed on board a ship of the Indian Navy. 

(2)   The provisions of section 69 and Chapter X shall apply to stores specified in sub-section (3) as 

they apply to other goods, subject to the modifications that— 

(a) for the words “exported to any place outside India” or the word “exported” wherever they occur, 

the words “taken on board a ship of the Indian Navy” shall be substituted; 

(b) for the words “ninety-eight per cent.” in sub-section (1) of section 74, the words “the whole” 

shall be substituted. 

1. Subs. by Act 13 of 2018, s. 89,  for “post” (w.e.f. 28-3-2018). 
2. Subs. by Act 7 of 2017, s. 105, for clause (a) (w.e.f. 31-3-2017). 

68 

 
                                                           
(3)   The stores referred to in sub-sections (1) and (2) are the following:— 

(a) stores for the use of a ship of the Indian Navy; 
(b) stores supplied free by the Government for the use of the crew of a ship of the Indian Navy in 

accordance with their conditions of service. 

CHAPTER XII 
PROVISIONS RELATING TO COASTAL GOODS AND VESSELS CARRYING COASTAL GOODS 

91. Chapter not to apply to baggage and stores.—The provisions of this Chapter shall not apply to 

baggage and stores. 

92. Entry of coastal goods.—(1) The consignor of any coastal goods shall make an entry thereof by 

presenting to the proper officer a bill of coastal goods in the prescribed form. 

(2)  Every such consignor while presenting a bill of coastal goods shall, at the foot thereof, make and 

subscribe to a declaration as to the truth of the contents of such bill. 

93.  Coastal goods not to be loaded until bill relating thereto is passed, etc.—The master of a vessel 
shall not permit the loading of any coastal goods on the vessel until a bill relating to such goods presented 
under section 92 has been passed by the proper officer and has been delivered to the master by the consignor. 

94.  Clearance of coastal goods at destination.—(1) The master of a vessel carrying any coastal goods 
shall carry on board the vessel all bills relating to such goods delivered to him under section 93 and shall, 
immediately on arrival of the vessel at any customs or coastal port, deliver to the proper officer of that port 
all bills relating to the goods which are to be unloaded at that port. 

(2) Where any coastal goods are unloaded at any port, the proper officer shall permit clearance thereof 
if  he  is  satisfied  that  they  are  entered  in  a  bill  of  coastal  goods  delivered  to  him  under  
sub-section (1). 

95.  Master of a coasting vessel to carry an advice book.—(1) The master of every vessel carrying 

coastal goods shall be supplied by the Customs authorities with a book to be called the “advice book”. 

 (2) The proper officer at each port of call by such vessel shall make such entries in the advice book as 

he deems fit, relating to the goods loaded on the vessel at that port. 

(3) The master of every such vessel shall carry the advice book on board the vessel and shall on arrival 

at each port of call deliver it to the proper officer at that port for his inspection. 

96.  Loading and unloading of coastal goods at customs port or coastal port only.—No coastal 
goods shall be loaded on, or unloaded from, any vessel at any port other than a customs port or a coastal 
port appointed under section 7 for the loading or unloading of such goods. 

97. No coasting vessel to leave without written order.—(1) The master of a vessel which has brought 
or loaded any coastal goods at a customs or coastal port shall not cause or permit the vessel to depart from 
such port until a written order to that effect has been given by the proper officer. 

(2) No such order shall be given until— 

(a) the master of the vessel has answered the questions put to him under section 38; 

(b) all charges and penalties due in respect of that vessel or from the master thereof have been paid 
or the payment secured by such guarantee or deposit of such amount as the proper officer may direct; 

(c) the master of the vessel has satisfied the proper officer that no penalty is leviable on him under 
section 116 or the payment of any penalty that may be levied upon him under that section has been 
secured by such guarantee or deposit of such amount as the proper officer may direct; 

(d) the provisions of this Chapter and any rules and regulations relating to coastal goods and vessels 

carrying coastal goods have been complied with. 

69 

 
 
98.  Application of certain provisions of this Act to coastal goods, etc.—(1) Sections 33, 34 and 36 

shall, so far as may be, apply to coastal goods as they apply to imported goods or export goods. 

(2) Sections 37 and 38 shall, so far as may be, apply to vessels carrying coastal goods as they apply to 

vessels carrying imported goods or export goods. 

(3) The Central Government may, by notification in the Official Gazette, direct that all or any of the 
other  provisions of  Chapter VI  and  the  provisions of  section  45  shall  apply  to coastal  goods  or  vessels 
carrying coastal goods subject to such exceptions and modifications as may be specified in the notification. 

1[98A. Power to relax.—If the Central Government is satisfied that it is necessary in the public interest 
so to do it may, by notification in the Official Gazette, exempt generally, either absolutely or subject to 
such conditions as may be specified in the notification, coastal goods or vessels carrying coastal goods from 
all or any of the provisions of this Chapter.] 

99.  Power  to  make  rules  in  respect  of  coastal  goods  and  coasting  vessels.—The  Central 

Government may make rules for— 

(a)   preventing  the  taking  out  of  India  of  any  coastal  goods  the  export  of  which  is  dutiable  or 

prohibited under this Act or any other law for the time being in force; 

(b)  preventing, in the case of a vessel carrying coastal goods as well as imported or export goods, 

the substitution of imported or export goods by coastal goods. 

2[CHAPTER XIIA 
AUDIT 

99A. Audit.—The proper officer may carry out the audit of assessment of imported goods or export 
goods or of an auditee under this Act either in his office or in the premises of the auditee in such manner as 
may be prescribed. 

Explanation.—For the purposes of this section, “auditee” means a person who is subject to an audit 
under this section and includes an importer or exporter or custodian approved under section 45 or licensee 
of  a  warehouse and any  other person concerned  directly  or  indirectly  in  clearing,  forwarding,  stocking, 
carrying, selling or purchasing of imported goods or export goods or dutiable goods.] 

3[CHAPTER XIIB 

VERIFICATION OF IDENTITY AND COMPLIANCE 

99B.  Verification  of  identity  and  compliance  thereof.—(1)  The  proper  officer,  authorised  in  this 
behalf by the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, 
may, for the purposes of ascertaining compliance of the provisions of this Act or any other law for the time 
being in force, require a person, whose verification he considers necessary for protecting the interest of 
revenue or for preventing smuggling, to do all or any of the following, namely:— 

(a) undergo authentication, or furnish proof of possession of Aadhaar number, in such manner and 

within such time as may be prescribed; 

(b) submit such other document or information, in such manner and within such time as may be 

prescribed: 

Provided that where such person has not been assigned the Aadhaar number, or where so assigned, 
but authentication of such person has failed due to technical reasons or for reasons beyond his control, 
then, he shall be provided an opportunity to furnish such other alternative and viable means of 
identification in such form and manner and within such time as may be prescribed. 

1. Ins. by Act 22 of 1995, s. 64 (w.e.f. 26-5-1995). 
2. Ins. by Act 13 of 2018, s. 90 (w.e.f. 28-3-2018). 
3. Ins. by Act 23 of 2019, s. 71 (w.e.f. 1-8-2019). 

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(2) The provisions of sub-section (1) shall not apply to such person or class of persons as may be 

prescribed. 

(3)  Notwithstanding  anything  contained  in  any  other  provisions  of  this  Act,  where  the  Principal 
Commissioner of Customs or the Commissioner of Customs comes to the conclusion, based on reasons to 
be recorded in writing, that the person referred to in sub-section (1) has— 

(i) failed to comply with the requirements of the said sub-section or submitted incorrect 

documents or information under the said sub-section, he may, by order, suspend— 

(a) clearance of imported goods or export goods; 

(b) sanction of refund; 

(c) sanction of drawback; 

(d) exemption from duty; 

(e) licence or registration granted under this Act; or 

(f) any benefit, monetary or otherwise, arising out of import or export,  

relating to such person, subject to such conditions as may be prescribed; 

(ii) failed authentication as required under the said sub-section, he may, by order, direct that such 

person shall not have the benefit of any of the items specified in sub-clauses (a) to (f) of clause (i). 

(4)  The  order  of  suspension  under  sub-section  (3)  shall  remain  in  force  until  the  person  concerned 
complies with the requirements of sub-section (1) or furnishes correct document or information there under. 

Explanation.—For the purposes of this section, the expression "Aadhaar number" shall have the same 
meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and 
Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016).] 

CHAPTER XIII 

SEARCHES, SEIZURE AND ARREST 

100.  Power to search suspected persons entering or leaving India, etc.—(1) If the proper officer 
has reason to believe that any person to whom this section applies has secreted about his person, any goods 
liable to confiscation or any documents relating thereto, he may search that person. 

(2) This section applies to the following persons, namely:— 

(a) any person who has landed from or is about to board, or is on board any vessel within the Indian 

customs waters; 

(b) any person who has landed from or is about to board, or is on board a foreign-going aircraft; 

(c) any person who has got out of, or is about to get into, or is in, a vehicle, which has arrived from, 

or is to proceed to any place outside India; 

(d) any person not included in clauses (a), (b) or (c) who has entered or is about to leave India; 

(e) any person in a customs area. 

101.  Power  to  search  suspected  persons  in  certain  other  cases.—(1)  Without  prejudice  to  the 
provisions of section 100, if an officer of customs empowered in this behalf by general or special order of 
the 1[Principal Commissioner of Customs or Commissioner of Customs], has reason to believe that any 
person has secreted about his person any goods of the description specified in sub-section (2) which are 
liable to confiscation, or documents relating thereto, he may search that person. 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 

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(2)  The goods referred to in sub-section (1) are the following:— 

(a)  gold; 
(b)  diamonds; 
(c)  manufactures of gold or diamonds; 
(d)  watches; 
(e)  any other class of goods which the Central Government may, by notification in the Official 

Gazette, specify. 
102. Persons  to  be  searched  may  require  to  be  taken  before  gazetted  officer  of  customs  or 
magistrate.—(1) When any officer of customs is about to search any person under the provisions of section 
100 or section 101, the officer of customs shall, if such person so requires, take him without unnecessary 
delay to the nearest gazetted officer of customs or magistrate. 

(2) If such requisition is made, the officer of customs may detain the person making it until he can bring 

him before the gazetted officer of customs or the magistrate. 

(3) The gazetted officer of customs or the magistrate before whom any such person is brought shall, if 
he  sees  no  reasonable  ground  for  search,  forthwith  discharge  the  person  but  otherwise  shall  direct  that 
search be made. 

(4) Before making a search under the provisions of section 100 or section 101, the officer of customs 
shall call upon two or more persons to attend and witness the search and may issue an order in writing to 
them or any of them so to do; and the search shall be made in the presence of such persons and a list of all 
things seized in the course of such search shall be prepared by such officer or other person and signed by 
such witness. 

(5) No female shall be searched by any one excepting a female. 
103. Power to screen or X-ray bodies of suspected persons for detecting secreted goods.—1[(1) 
Where the proper officer has reason to believe that any person referred to in sub-section (2) of section 100 
has any goods liable to confiscation secreted inside his body, he may detain such person and shall,— 

(a) with the prior approval of the Deputy Commissioner of Customs or Assistant Commissioner of 
Customs, as soon as practicable, screen or scan such person using such equipment as may be available 
at the customs station, but without prejudice to any of the rights available to such person under any 
other law for the time being in force, including his consent for such screening or scanning, and forward 
a report of such screening or scanning to the nearest magistrate if such goods appear to be secreted 
inside his body; or 

(b) produce him without unnecessary delay before the nearest magistrate.] 

(2) A magistrate before whom any person is brought under sub-section (1) shall, if he sees no reasonable 
ground for believing that such person has any such goods secreted inside his body, forthwith discharge such 
person. 

(3) Where any such magistrate has reasonable ground for believing that such person has any such goods 
secreted inside his body and the magistrate is satisfied that for the purpose of discovering such goods it is 
necessary to have the body of such person screened or X-rayed, he may make an order to that effect. 

(4) Where a magistrate has made any order under sub-section (3), in relation to any person, the proper 
officer  shall,  as  soon  as  practicable,  take  such  person  before  a  radiologist  possessing  qualifications 
recognized  by  the  Central Government  for  the  purpose  of  this  section,  and  such  person  shall  allow the 
radiologist to screen or X-ray his body. 

(5) A radiologist before whom any person is brought under sub-section (4) shall, after screening or  
X-raying the body of such person, forward his report, together with any X-ray pictures taken by him, to the 
magistrate without unnecessary delay. 

(6)   Where on receipt of a report 2[from the proper officer under clause (a) of sub-section (1) or] from 
a radiologist under sub-section (5) or otherwise, the magistrate is satisfied that any person has any goods 
liable to confiscation secreted inside his body, he may direct that suitable action for bringing out such goods 
be taken on the advice and under the supervision of a registered medical practitioner and such person shall 
be bound to comply with such direction: 

1. Subs. by Act 23 of 2019, s. 72, for sub-section (1) (w.e.f. 1-8-2019). 
2. Ins. by s. 72, ibid. (w.e.f. 1-8-2019). 

72 

 
                                                           
Provided that in the case of a female no such action shall be taken except on the advice and under the 

supervision of a female registered medical practitioner. 

(7) Where any person is brought before a magistrate under this section, such magistrate may for the 
purpose of enforcing the provisions of this section order such person to be kept in such custody and for 
such period as he may direct. 

(8) Nothing in this section shall apply to any person referred to in sub-section (1), who admits that 
goods liable to confiscation are secreted inside his body, and who voluntarily submits himself for suitable 
action being taken for bringing out such goods. 

Explanation.—For the purposes of this section, the expression “registered medical practitioner” means 
any person who holds a qualification granted by an authority specified in the Schedule to the Indian Medical 
Degrees Act, 1916 (7 of 1916), or notified under section 3 of that Act, or by an authority specified in any 
of the Schedules to the Indian Medical Council Act, 1956 (102 of 1956). 

104.  Power to arrest.—1[(1) If an officer of customs empowered in this behalf by general or special 
order of the 2[Principal Commissioner of Customs or Commissioner of Customs] has reason to believe that 
any person 3*** has committed an offence punishable under section 132 or section 133 or section 135 or 
section 135A or section 136, he may arrest such person and shall, as soon as may be, inform him of the 
grounds for such arrest.] 

(2)  Every  person  arrested  under  sub-section  (1)  shall,  without  unnecessary  delay,  be  taken  to  a 

magistrate. 

(3) Where an officer of customs has arrested any person under sub-section (1), he shall, for the purpose 
of releasing such person on bail or otherwise, have the same powers and be subject to the same provisions 
as the officer-in-charge of a police-station has and is subject to under the Code of Criminal Procedure, 1898 
(5 of 1898). 

4[(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any 

offence relating to— 

(a) prohibited goods; or 
(b) evasion or attempted evasion of duty exceeding fifty lakh 5[rupees; or], 

shall be cognizable. 

6[(c) fraudulently availing of or attempting to avail drawback or any exemption from duty provided 

under this Act, where the amount of drawback or exemption from duty exceeds fifty lakh rupees; or 

(d)  fraudulently  obtaining  an  instrument  for  the  purposes  of  this  Act  or  the  Foreign  Trade 
(Development and Regulation) Act, 1992 (22 of 1992), and such instrument is utilised under this Act, 
where duty relatable to such utilisation of instrument exceeds fifty lakh rupees.] 
(5)  Save  as  otherwise  provided  in  sub-section  (4),  all  other  offences  under  the  Act  shall  be  

non-cognizable. 

7[(6)  Notwithstanding  anything  contained  in the  Code of  Criminal  Procedure,  1973,  (2  of  1974)  an 

offence punishable under section 135 relating to— 

(a) evasion or attempted evasion of duty exceeding fifty lakh rupees; or 

(b) prohibited goods notified under section 11 which are also notified under sub-clause (c) of clause 

(i) of sub-section (1) of section 135; or 

(c) import or export of any goods which have not been declared in accordance with the provisions 

of this Act and the market price of which exceeds one crore rupees; or 

1. Subs. by Act 29 of 2006, s. 24, for sub-section (1) (w.e.f. 13-7-2006). 
2. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
3. The words “in India or within the Indian customs waters” omitted by Act 23 of 2019, s. 73 (w.e.f. 1-8-2019). 
4. Subs. by Act 23 of 2012, s. 126, for sub-section (4) (w.e.f. 28-5-2012). 
5. Subs. by Act 23 of 2019, s. 73, for “rupees,” (w.e.f. 1-8-2019). 
6. Ins. by s. 73, ibid. (w.e.f. 1-8-2019). 
7. Subs. by Act 17 of 2013, s. 75, for sub-section (6) (w.e.f. 10-5-2013). 

73 

 
 
                                                           
(d) fraudulently availing of or attempt to avail of drawback or any exemption from duty provided 

under this Act, if the amount of drawback or exemption from duty exceeds fifty lakh 1[rupees; or], 

shall be non-bailable. 

2[(e)  fraudulently obtaining an  instrument  for  the  purposes  of  this  Act  or  the  Foreign  Trade 
(Development and Regulation) Act, 1992 (22 of 1992), and such instrument is utilised under this Act, 
where duty relatable to such utilisation of instrument exceeds fifty lakh rupees.] 

(7) Save as otherwise provided in sub-section (6), all other offences under this Act shall be bailable.] 
3[Explanation.—For  the  purposes  of  this  Section,  the  expression  “instrument”  shall  have  the  same 

meaning as assigned to it in Explanation 1 to section 28AAA.] 

 105.  Power  to  search  premises.—(1)  If  the 4[Assistant  Commissioner  of  Customs  or  Deputy 
Commissioner of Customs], or in any area adjoining the land frontier or the coast of India an officer of 
customs specially empowered by name in this behalf by the Board, has reason to believe that any goods 
liable to confiscation, or any documents or things which in his opinion will be useful for or relevant to any 
proceeding under this Act, are secreted in any place, he may authorise any officer of customs to search or 
may himself search for such goods, documents or things. 

(2) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), relating to searches shall, so 
far as may be, apply to searches under this section subject to the modification that sub-section (5) of section 
165  of  the  said  Code  shall  have  effect  as  if  for  the  word  “Magistrate”,  wherever  it  occurs,  the 
words 5[Principal Commissioner of Customs or Commissioner of Customs] were substituted. 

106.  Power to stop and search conveyances.—(1) Where the proper officer has reason to believe that 
any aircraft, vehicle or animal in India or any vessel in India or within the Indian customs waters has been, 
is being, or is about to be, used in the smuggling of any goods or in the carriage of any goods which have 
been smuggled, he may at any time stop any such vehicle, animal or vessel or, in the case of an aircraft, 
compel it to land, and— 

(a) rummage and search any part of the aircraft, vehicle or vessel; 

(b) examine and search any goods in the aircraft, vehicle or vessel or on the animal; 

(c) break open the lock of any door or package for exercising the powers conferred by clauses (a) 

and (b), if the keys are withheld. 

(2)   Where for the purposes of sub-section (1)— 

(a) it becomes necessary to stop any vessel or compel any aircraft to land, it shall be lawful for any 
vessel  or  aircraft  in  the  service  of  the  Government  while  flying  her  proper  flag  and  any  authority 
authorised in this behalf by the Central Government to summon such vessel to stop or the aircraft to 
land, by means of an international signal, code or other recognized means, and thereupon, such vessel 
shall forthwith stop or such aircraft shall forthwith land; and if it fails to do so, chase may be given 
thereto by any vessel or aircraft as aforesaid and if after a gun is fired as a signal the vessel fails to stop 
or the aircraft fails to land, it may be fired upon; 

(b)  it becomes necessary to stop any vehicle or animal, the proper officer may use all lawful means 

for stopping it, and where such means fail, the vehicle or animal may be fired upon. 

1. Subs. by Act 23 of 2019, s. 73, for “rupees,” (w.e.f. 1-8-2019). 
2. Ins. by Act 23 of 2019, s. 73 (w.e.f. 1-8-2019). 
3. Ins. by s. 73, ibid. (w.e.f. 1-8-2019). 
4. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
5. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 

74 

 
 
 
                                                           
1[106A. Power  to  inspect.—Any  proper  officer  authorised  in  this  behalf  by  the 2[Principal 
Commissioner of Customs or Commissioner of Customs] may, for the purpose of ascertaining whether or 
not the requirements of this Act have been complied with, at any reasonable time, enter any place intimated 
under Chapter IVA or Chapter IVB, as the case may be, and inspect the goods kept or stored therein and 
require any person found therein, who is for the time being in charge thereof, to produce to him for his 
inspection the accounts maintained under the said Chapter IVA or Chapter IVB, as the case may be, and to 
furnish to him such other information as he may reasonably require for the purpose of ascertaining whether 
or not such goods have been illegally imported, exported or are likely to be illegally exported.] 

107. Power  to  examine  persons.—Any  officer  of  customs  empowered  in  this behalf by  general  or 
special order of the 2[Principal Commissioner of Customs or Commissioner of Customs] may, during the 
course of any enquiry in connection with the smuggling of any goods,— 

(a) require any person to produce or deliver any document or thing relevant to the enquiry; 

(b) examine any person acquainted with the facts and circumstances of the case. 

108. Power  to  summon  persons  to  give  evidence  and  produce  documents.—3[(1)  Any  Gazetted 
Officer of customs 4*** shall have power to summon any person whose attendance he considers necessary 
either to give evidence or to produce a document or any other thing in any inquiry which such officer is 
making under this Act.] 

(2) A summons to produce documents or other things may be for the production of certain specified 
documents  or  things  or  for  the  production  of  all  documents  or  things  of  a  certain  description  in  the 
possession or under the control of the person summoned. 

(3) All persons so summoned shall be bound to attend either in person or by an authorised agent, as 
such officer may direct; and all persons so summoned shall be bound to state the truth upon any subject 
respecting which they are examined or make statements and produce such documents and other things as 
may be required: 

Provided that the exemption under section 132 of the Code of Civil Procedure, 1908 (5 of 1908), shall 

be applicable to any requisition for attendance under this section. 

(4) Every such inquiry as aforesaid shall be deemed to be a judicial proceeding within the meaning of 

section 193 and section 228 of the Indian Penal Code, 1860 (45 of 1860). 

5[108A. Obligation to furnish information.—(1) Any person, being— 

(a) a local authority or other public body or association; or 

(b) any authority of the State Government responsible for the collection of value added tax or sales 

tax or any other tax relating to the goods or services; or 

(c)  an income-tax  authority  appointed  under  the  provisions of the  Income  tax Act,  1961  (43  of 

1961); or 

(d) a Banking company within the meaning of clause (a) of section 45A of the Reserve Bank of 

India Act, 1934 (2 of 1934); or 

(e) a co-operative bank within the meaning of clause (dd) of section 2 of the Deposit Insurance and 

Credit Guarantee Corporation Act,1961 (45 of 1961); or 

(f) a financial institution within the meaning of clause (c), or a  non-banking financial company 
within the meaning of clause (f), of section 45-I of the Reserve Bank of India Act,1934 (2 of 1934); or 

1. Ins. by Act 12 of 1969, s. 3 (w.e.f. 3-1-1969). 
2. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
3. Subs. by Act 29 of 2006, s. 25, for sub-section (1) (w.e.f. 13-7-2006). 
4. The words “duly empowered by the Central Government in this behalf,” omitted by Act 18 of 2008, s. 69 (w.e.f. 13-7-2006). 
5. Ins. by Act 18 of 2017, s. 3 (w.e.f. 4-5-2017). 

75 

 
                                                           
(g)  a  State  Electricity  Board;  or  an  electricity  distribution  or  transmission  licensee  under  the 
Electricity Act, 2003 (36 of 2003), or any other entity entrusted, as the case may be, with such functions 
by the Central Government or the State Government; or 

(h) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (16 of 

1908); or 

(i) a Registrar within the meaning of the Companies Act, 2013 (18 of 2013); or 

(j) the registering authority empowered to register motor vehicles under Chapter IV of the Motor 

Vehicles Act, 1988 (59 of 1988); or 

(k)  the  Collector  referred  to  in  clause  (c)  of  section  3  of  the  Right  to  Fair  Compensation  and 

Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013); or 

(l) the recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts 

(Regulation) Act, 1956 (42 of 1956); or 

(m)  a  depository  referred  to  in  clause  (e)  of  sub-section  (1)  of  section  2  of  the  Depositories  

Act, 1996 (22 of 1996); or 

(n) the Post Master General within the meaning of clause (j) of section 2 of the Indian Post Office 

Act, 1898 (6 of 1898); or 

(o)  the  Director  General  of  Foreign  Trade  within  the  meaning  of  clause  (d)  of section  2  of  the 

Foreign Trade (Development and Regulation) Act,1992 (22 of 1992); or 

(p) the General Manager of a Zonal Railway within the meaning of clause (18) of section 2 of the 

Railways Act,1989 (24 of 1989); or 

(q) an officer of the Reserve Bank of India constituted under section 3 of the Reserve Bank of India 

Act, 1934 (2 of 1934), 

who  is  responsible  for  maintaining  record of registration  or statement  of  accounts  or holding  any  other 
information under any of the Acts specified above or under any other law for the time being in force, which 
is considered relevant for the purposes of this Act, shall furnish such information to the proper officer in 
such manner as may be prescribed by rules made under this Act. 

(2) Where the proper officer considers that the information furnished under sub-section (1) is defective, 
he may intimate the defect to the person who has furnished such information and give him an opportunity 
of rectifying the defect within a period of seven days from the date of such intimation or within such further 
period which, on an application made in this behalf, the proper officer may allow and if the defect is not 
rectified  within  the  said  period  of  seven  days  or,  further  period,  as  the  case  may  be,  so  allowed,  then, 
notwithstanding anything contained in any other provision of this Act, such information shall be deemed 
as not furnished and the provisions of this Act shall apply. 

(3) Where a person who is required to furnish information has not furnished the same within the time 
specified in sub-section (1) or sub-section (2), the proper officer may serve upon him a notice requiring him 
to furnish such information within a period not exceeding thirty days from the date of service of the notice 
and such person shall furnish such information. 

108B. Penalty  for  failure  to  furnish  information  return.—Where  the  person  who  is  required  to 
furnish information under section 108A fails to do so within the period specified in the notice issued under 
sub-section (3) thereof, the proper officer may direct such person to pay, by way of penalty, a sum of one 
hundred rupees for each day of the period during which the failure to furnish such information continue.] 

109.  Power to require production of order permitting clearance of goods imported by land.—
Any officer of customs appointed for any area adjoining the land frontier of India and empowered in this 
behalf by general or special order of the Board, may require any person in possession of any goods which 
such officer has reason to believe to have been imported into India by land, to produce the order made under 
section 47 permitting clearance of the goods: 

76 

 
Provided that nothing in this section shall apply to any imported goods passing from a land frontier to 

a land customs station by a route appointed under clause (c) of section 7. 

1[109A. Power to undertake controlled delivery.—Notwithstanding anything contained in this Act, 
the proper officer or any other officer authorised by him in this behalf, may undertake controlled delivery 
of any consignment of such goods and in such manner as may be prescribed, to— 

(a) any destination in India; or 
(b) a foreign country, in consultation with the competent authority of such country to which such 

consignment is destined. 
Explanation.—For the purposes of this section “controlled delivery” means the procedure of allowing 
consignment of such goods to pass out of, or into, the territory of India with the knowledge and under the 
supervision  of  proper  officer  for  identifying  the  persons  involved  in  the  commission  of  an  offence  or 
contravention under this Act.] 

110.  Seizure of goods, documents and things.—(1) If the proper officer has reason to believe that 

any goods are liable to confiscation under this Act, he may seize such goods: 

2[Provided that where it is not practicable to remove, transport, store or take physical possession of the 
seized goods for any reason, the proper officer may give custody of the seized goods to the owner of the 
goods or the beneficial owner or any person holding himself out to be the importer, or any other person 
from whose custody such goods have been seized, on execution of an undertaking by such person that he 
shall not remove, part with, or otherwise deal with the goods except with the previous permission of such 
officer: 

Provided further that where it is not practicable to seize any such goods, the proper officer may serve 
an order on the owner of the goods or the beneficial owner or any person holding himself out to be importer, 
or any other person from whose custody such goods have been found, directing that such person shall not 
remove, part with, or otherwise deal with such goods except with the previous permission of such officer.] 
3[(1A) The Central Government may, having regard to the perishable or hazardous nature of any goods, 
depreciation in the value of the goods with the passage of time, constraints of storage space for the goods 
or any other relevant considerations, by notification in the Official Gazette, specify the goods or class of 
goods which shall, as soon as may be after its seizure under sub-section (1), be disposed of by the proper 
officer in such manner as the Central Government may, from time to time, determine after following the 
procedure hereinafter specified. 

(1B) Where any goods, being goods specified under sub-section (1A), have been seized by a proper 
officer under sub-section (1), he shall prepare an inventory of such goods containing such details relating 
to their description, quality, quantity, mark, numbers, country of origin and other particulars as the proper 
officer may consider relevant to the identity of the goods in any proceedings under this Act and shall make 
an application to a Magistrate for the purpose of— 

(a) certifying the correctness of the inventory so prepared; or 
(b) taking,  in  the  presence  of  the  Magistrate,  photographs  of  such  goods,  and  certifying  such 

photographs as true; or 

(c) allowing to draw representative samples of such goods, in the presence of the Magistrate, and 

certifying the correctness of any list of samples so drawn. 
(1C) Where an application is made under sub-section (1B), the Magistrate shall, as soon as may be, 

allow the application.] 

4[(1D) Where the goods seized under sub-section (1) is gold in any form as notified under sub-section 
(1A),  then,  the  proper  officer  shall,  instead  of  making  an  application  under  sub-section  (1B)  to  the 
Magistrate, make such application to the Commissioner (Appeals) having jurisdiction, who shall, as soon 
as  may  be,  allow  the  application  and  thereafter,  the  proper  officer  shall  dispose  of  such  goods  in  such 
manner as the Central Government may determine.] 

1. Ins. by Act 13 of 2018, s. 91 (w.e.f. 28-3-2018). 
2. Subs. by Act 23 of 2019, s. 74, for the Proviso (w.e.f. 1-8-2019). 
3. Ins. by Act 80 of 1985, s. 8 (w.e.f. 27-12-1985). 
4. Ins. by Act 13 of 2021, s. 94 (w.e.f. 28-3-2021). 

77 

 
                                                           
(2) Where any goods are seized under sub-section (1) and no notice in respect thereof is given under 
clause (a) of section 124 within six months of the seizure of the goods, the goods shall be returned to the 
person from whose possession they were seized: 

1[Provided that the Principal Commissioner of Customs or Commissioner of Customs may, for reasons 
to be recorded in writing, extend such period to a further period not exceeding six months and inform the 
person from whom such goods were seized before the expiry of the period so specified: 

Provided further that where any order for provisional release of the seized goods has been passed under 

section 110A, the specified period of six months shall not apply.] 

(3) The proper officer may seize any documents or things which, in his opinion, will be useful for, or 

relevant to, any proceeding under this Act. 

(4) The person from whose custody any documents are seized under sub-section (3) shall be entitled to 

make copies thereof or take extracts therefrom in the presence of an officer of customs. 

2[(5) Where the proper officer, during any proceedings under the Act, is of the opinion that for the 
purposes of protecting the interest of revenue or preventing smuggling, it is necessary so to do, he may, 
with the approval of the Principal Commissioner of Customs or Commissioner of Customs, by order in 
writing, provisionally attach any bank account for a period not exceeding six months: 

Provided that the Principal Commissioner of Customs or Commissioner of Customs may, for reasons 
to be recorded in writing, extend such period to a further period not exceeding six months and inform such 
extension of time to the person whose bank account is provisionally attached, before the expiry of the period 
so specified.] 

3[110A. Provisional release of goods, documents and things seized 4[or bank account provisionally 
attached] pending adjudication.—Any goods, documents or things seized 4[or bank account provisionally 
attached]  under section 110, may, pending the order of the 5[adjudicating  authority], be released to the 
owner 4[or the bank account holder] on taking a bond from him in the proper form with such security and 
conditions as the 6[adjudicating  authority] may require.] 

7[110AA.  Action  subsequent  to  inquiry,    investigation  or  audit  or  any  other  specified                     

purpose.—Where in pursuance of any proceeding, in accordance with Chapter XIIA or this Chapter, if an 
officer of customs has reasons to believe that––  

(a) any duty has been short-levied, not levied, short-paid or not paid in a case where assessment has 

already been made;  

(b) any duty has been erroneously refunded; 

(c) any drawback has been erroneously allowed; or 

(d) any interest has been short-levied, not levied, short-paid or not paid, or erroneously refunded,  

then such officer of customs shall, after causing inquiry, investigation, or as the case may be, audit, transfer 
the relevant documents, along with a report in writing—  

(i) to the proper officer having jurisdiction, as assigned under section 5 in respect of assessment of 

such duty, or to the officer who allowed such refund or drawback; or 

(ii) in case of multiple jurisdictions, to an officer of customs to whom such matter is assigned by 

the Board, in exercise of the powers conferred under section 5,  

and  thereupon,  power  exercisable  under  sections  28,  28AAA  or  Chapter  X,  shall  be  exercised  by  such 
proper officer or by an officer to whom the proper officer is subordinate in accordance with sub-section (2) 
of section 5.] 

1. Subs. by Act 13 of 2018, s. 92, for the proviso (w.e.f. 28-3-2018). 
2. Ins. by Act 23 of 2019, s. 74 (w.e.f. 1-8-2019). 
3. Ins. by Act 29 of 2006, s. 26 (w.e.f. 13-7-2006). 
4. Ins. by Act 23 of 2019, s. 75 (w.e.f. 1-8-2019). 
5. Subs. by Act 8 of 2011, s. 47, for “adjudicating officer” (w.e.f. 8-4-2011). 
6. Subs. by s. 47, ibid., for “Commissioner of Customs” (w.e.f. 8-4-2011). 
7. Ins. by Act 6 of 2022, s. 94 (w.e.f. 30-3-2022). 

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CHAPTER XIV 
CONFISCATION OF GOODS AND CONVEYANCES AND IMPOSITION OF PENALTIES 

111.  Confiscation of improperly imported goods, etc.—The following goods brought from a place 

outside India shall be liable to confiscation:— 

(a) any goods imported by sea or air which are unloaded or attempted to be unloaded at any place 
other than a customs port or customs airport appointed under clause (a) of section 7 for the unloading 
of such goods; 

(b) any goods imported by land or inland water through any route other than a route specified in a 

notification issued under clause (c) of section 7 for the import of such goods; 

(c) any dutiable or prohibited goods brought into any bay, gulf, creek or tidal river for the purpose 

of being landed at a place other than a customs port; 

(d) any goods which are imported or attempted to be imported or are brought within the Indian 
customs waters for the purpose of being imported, contrary to any prohibition imposed by or under this 
Act or any other law for the time being in force; 

(e) any dutiable or prohibited goods found concealed in any manner in any conveyance; 
(f) any dutiable or prohibited goods required to be mentioned under the regulations in an 1[arrival 

manifest or import manifest] or import report which are not so mentioned; 

(g) any dutiable or prohibited goods which are unloaded from a conveyance in contravention of the 
provisions of section 32, other than goods inadvertently unloaded but included in the record kept under 
sub-section (2) of section 45; 

(h) any dutiable or prohibited goods unloaded or attempted to be unloaded in contravention of the 

provisions of section 33 or section 34; 

(i) any dutiable or prohibited goods found concealed in any manner in any package either before 

or after the unloading thereof; 

(j) any dutiable or prohibited goods removed or attempted to be removed from a customs area or a 

warehouse without the permission of the proper officer or contrary to the terms of such permission; 

(k)  any  dutiable  or  prohibited  goods  imported  by  land  in  respect  of  which  the  order  permitting 
clearance  of the  goods  required  to  be produced  under  section  109  is  not  produced  or  which  do  not 
correspond in any material particular with the specification contained therein; 

(l) any dutiable or prohibited goods which are not included or are in excess of those included in the 

entry made under this Act, or in the case of baggage in the declaration made under section 77; 

(m) 2[any goods which do not correspond in respect of value or in any other particular] with the 
entry made under this Act or in the case of baggage with the declaration made under section 77  3[in 
respect 
the  declaration 
for transhipment referred to in the proviso to sub-section (1) of section 54]; 

the  case  of  goods  under 

transhipment,  with 

thereof,  or 

in 

(n)  any  dutiable  or  prohibited  goods transited with  or  without transhipment or  attempted  to  be 

so transited in contravention of the provisions of Chapter VIII; 

(o) any goods exempted, subject to any condition, from duty or any prohibition in respect of the 
import  thereof  under  this Act  or  any  other  law  for the  time  being  in  force, in respect  of  which  the 
condition  is  not  observed unless  the  non-observance of  the  condition  was sanctioned  by  the  proper 
officer; 

4[(p) any notified goods in relation to which any provisions of Chapter IVA or of any rule made 

under this Act for carrying out the purposes of that Chapter have been contravened.] 

5[(q) any goods imported on a claim of preferential rate of duty which contravenes any provision 

of Chapter VAA or any rule made thereunder.] 

1. Subs. by Act 13 of 2018, s. 56, for “import manifest” (w.e.f. 28-3-2018). 
2.  Subs.  by  Act  36  of  1973,  s.  2,  for  “any  dutiable  or  prohibited  goods  which  do  not  correspond  in  any  material  particular”  

(w.e.f. 1-9-1973). 

3. Subs. by Act 27 of 1999, s. 108, for “in respect thereof,” (w.e.f. 11-5-1999). 
4. Ins. by Act 12 of 1969, s. 4 (w.e.f. 3-1-1969). 
5. Ins. by Act 12 of 2020, s. 113 (w.e.f. 27-3-2020). 

79 

 
 
                                                           
112. Penalty for improper importation of goods, etc.—Any person,— 

(a) who, in relation to any goods, does or omits to do any act which act or omission would render 

such goods liable to confiscation under section 111, or abets the doing or omission of such an act, or 

(b)  who  acquires  possession  of  or  is  in  any  way  concerned  in  carrying,  removing, 
depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with 
any goods which he knows or has reason to believe are liable to confiscation under section 111, 

shall be liable,— 

(i) in the case of goods in respect of which any prohibition is in force under this Act or any other 
law for the time being in force, to a penalty 1[not exceeding the value of the goods or five thousand 
rupees], whichever is the greater; 

2[(ii) in the case of dutiable goods, other than prohibited goods, subject to the provisions of section 
114A, to a penalty not exceeding ten per cent. of the duty sought to be evaded or five thousand rupees, 
whichever is higher: 

Provided that where such duty as determined under sub-section (8) of section 28 and the interest 
payable thereon under section 28AA is paid within thirty days from the date of communication of the 
order of the proper officer determining such duty, the amount of penalty liable to be paid by such person 
under this section shall be twenty-five per cent. of the penalty so determined;] 

3[(iii) in the case of goods in respect of which the value stated in the entry made under this Act or 
in the case of baggage, in the declaration made under section 77 (in either case hereafter in this section 
referred  to  as  the  declared  value)  is  higher  than  the  value  thereof,  to  a  penalty 4[not  exceeding  the 
difference between the declared value and the value thereof or five thousand rupees], whichever is the 
greater; 

(iv) in the case of goods falling both under clauses (i) and (iii), to a penalty 5[not exceeding the 
value of the goods or the difference between the declared value and the value thereof or five thousand 
rupees], whichever is the highest; 

(v) in the case of goods falling both under clauses (ii) and (iii), to a penalty 6[not exceeding the duty 
sought to be evaded on such goods or the difference between the declared value and the value thereof 
or five thousand rupees], whichever is the highest.] 
113. Confiscation of goods attempted to be improperly exported, etc.—The following export goods 

shall be liable to confiscation:— 

(a) any goods attempted to be exported by sea or air from any place other than a customs port or a 

customs airport appointed for the loading of such goods; 

(b) any goods attempted to be exported by land or inland water through any route other than a route 

specified in a notification issued under clause (c) of section 7 for the export of such goods; 

(c) any 7*** goods brought near the land frontier or the coast of India or near any bay, gulf, creek 
or tidal river for the purpose of  being exported from a place other than a land customs station or a 
customs port appointed for the loading of such goods; 

(d) any goods attempted to be exported or brought within the limits of any customs area for the 
purpose of being exported, contrary to any prohibition imposed by or under this Act or any other law 
for the time being in force; 

1.  Subs.  by  Act  14  of  2001,  s.  107,  for  “not  exceeding  five  times  the  value  of  the  goods  or  one  thousand  rupees”  

(w.e.f. 11-5-2001). 

2. Subs. by Act 20 of 2015, s. 83, for sub-clause (ii) (w.e.f. 14-5-2015). 
3. Ins. by Act 36 of 1973, s. 3 (w.e.f. 1-9-1973). 
4. Subs. by Act 14 of 2001, s. 107, for “not exceeding five times the difference between the declared value and the value thereof 

or one thousand rupees” (w.e.f. 11-5-2001).  

5. Subs. by s. 107, ibid., for “not exceeding five times the value of the goods or five times the difference between the declared value 

and the value thereof or one thousand rupees” (w.e.f. 11-5-2001). 

6. Subs. by s. 107, ibid., for “not exceeding five times the duty sought to be evaded on such goods or five times the difference 

between the declared value and the value thereof or one thousand rupees” (w.e.f. 11-5-2001). 

7. The words “dutiable or prohibited” omitted by Act 32 of 2003, s. 116 (w.e.f. 14-5-2003). 

80 

 
 
                                                           
(e) any 1*** goods found concealed in a package which is brought within the limits of a customs 

area for the purpose of exportation; 

(f) any 1*** goods which are loaded or attempted to be loaded in contravention of the provisions 

of section 33 or section 34; 

(g)  any 1***  goods  loaded  or  attempted  to  be  loaded  on  any  conveyance,  or  water-borne,  or 
attempted to be water-borne for being loaded on any vessel, the eventual destination of which is a place 
outside India, without the permission of the proper officer; 

(h) any 1*** goods which are not included or are in excess of those included in the entry made 

under this Act, or in the case of baggage in the declaration made under section 77; 

2[(i)  any  goods  entered  for  exportation  which  do  not  correspond  in  respect  of  value  or  in  any 
material particular with the entry made under this Act or in the case of baggage with the declaration 
made under section 77;] 

3[(ii) any goods entered for exportation under claim for drawback which do not correspond in any 
material particular with any information furnished by the exporter or manufacturer under this Act in 
relation to the fixation of rate of drawback under section 75;] 

(j) any goods on which import duty has not been paid and which are entered for exportation under 

a claim for drawback under section 74; 

4[(ja) any goods entered for exportation under claim of remission or refund of any duty or tax or 
levy to make a wrongful claim in contravention of the provisions of this Act or any other law for the 
time being in force;] 

(k) any goods cleared for exportation 5*** which are not loaded for exportation on account of any 
wilful act, negligence or default of the exporter, his agent or employee, or which after having been 
loaded for exportation are unloaded without the permission of the proper officer; 

6[(l) any specified goods in relation to which any provisions of Chapter IVB or of any rule made 

under this Act for carrying out the purposes of that Chapter have been contravened.] 

114. Penalty  for  attempt  to  export  goods  improperly,  etc.—Any  person  who,  in  relation  to  any 
goods, does or omits to do any act which act or omission would render such goods liable to confiscation 
under section 113, or abets the doing or omission of such an act, shall be liable,— 

(i) in the case of goods in respect of which any prohibition is in force under this Act or any other 
law  for  the  time  being  in  force,  to  a  penalty 7[not  exceeding  three  times  the  value  of  the  goods  as 
declared by the exporter or the value as determined under this Act], whichever is the greater; 

8[(ii)  in  the  case  of  dutiable  goods,  other  than  prohibited  goods,  subject  to  the  provisions  of  
section 114A, to a penalty not exceeding ten per cent. of the duty sought to be evaded or five thousand 
rupees, whichever is higher: 

Provided that where such duty as determined under sub-section (8) of section 28 and the interest 
payable thereon under section 28AA is paid within thirty days from the date of communication of the 
order of the proper officer determining such duty, the amount of penalty liable to be paid by such person 
under this section shall be twenty-five per cent. of the penalty so determined;] 

1. The words “dutiable or prohibited” omitted by Act 32 of 2003, s. 116 (w.e.f. 14-5-2003). 
2. Subs. by Act 32 of 2003, s. 116, for clause (i) (w.e.f. 14-5-2003). 
3. Ins. by Act 49 of 1991, s. 120 (w.e.f. 27-9-1991). 
4. Ins. by Act 13 of 2021, s. 95 (w.e.f. 28-3-2021). 
5. The words “under a claim for drawback” omitted by Act 32 of 2003, s. 116 (w.e.f. 14-5-2003). 
6. Ins. by Act 12 of 1969, s. 5 (w.e.f. 3-1-1969). 
7. Subs. by Act 32 of 2003, s. 117, for “not exceeding the value of the goods or five thousand rupees” (w.e.f. 14-5-2003). 
8. Subs. by Act 20 of 2015, s. 84, for clause (ii) (w.e.f. 14-5-2015). 

81 

 
 
 
                                                           
1[(iii) in the case of any other goods, to a penalty not exceeding the value of the goods, as declared 

by the exporter or the value as determined under this Act, whichever is the greater.] 

2[114A.  Penalty for short-levy or non-levy of duty in certain cases.—Where the duty has not been 
levied or has been short-levied or the interest has not been charged or paid or has been part paid or the duty 
or interest has been erroneously refunded by reason of collusion or any wilful mis-statement or suppression 
of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under   3[sub-
section (8) of section 28] shall, also be liable to pay a penalty equal to the duty or interest so determined:] 

4[Provided that where such duty or interest, as the case may be, as determined under 9[sub-section (8) 
of section 28], and the interest payable thereon under section 5[28AA], is paid within thirty days from the 
date of the communication of the order of the proper officer determining such duty, the amount of penalty 
liable to be paid by such person under this section shall be twenty-five per cent. of the duty or interest, as 
the case may be, so determined: 

Provided further that the benefit of reduced penalty under the first proviso shall be available subject to 
the condition that the amount of penalty so determined has also been paid within the period of thirty days 
referred to in that proviso: 

Provided also that where the duty or interest determined to be payable is reduced or increased by the 
Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, for the purposes of 
this section, the duty or interest as reduced or increased, as the case may be, shall be taken into account: 

Provided also that in a case where the duty or interest determined to be payable  is increased by the 
Commissioner  (Appeals),  the  Appellate  Tribunal  or,  as  the  case  may  be,  the  court,  then,  the  benefit  of 
reduced  penalty  under  the  first  proviso  shall  be  available  if  the  amount  of  the  duty  or  the  interest  so 
increased, along with the interest payable thereon under section  5[28AA], and twenty-five per cent. of the 
consequential increase in penalty have also been paid within thirty days of the communication of the order 
by which such increase in the duty or interest takes effect: 

Provided also that where any penalty has been levied under this section, no penalty shall be levied under 

section 112 or section 114.] 

Explanation.—For the removal of doubts, it is hereby declared that— 

(i) the provisions of this section shall also apply to cases in which the order determining the duty 
or interest under 6[sub-section (8) of section 28] relates to notices issued prior to the date on which the 
Finance Act, 2000 (10 of 2000) receives the assent of the President; 

(ii) any amount paid to the credit of the Central Government prior to the date of communication of 
the order referred to in the first proviso or the fourth proviso shall be adjusted against the total amount 
due from such person.] 

7[114AA. Penalty for use of false and incorrect material.—If a person knowingly or intentionally 
makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document which 
is false or incorrect in any material particular, in the transaction of any business for the purposes of this 
Act, shall be liable to a penalty not exceeding five times the value of goods.] 

1. Subs. by Act 32 of 2003, s. 117, for clause (iii) (w.e.f. 14-5-2003). 
2. Ins. by Act 33 of 1996, s. 64 (w.e.f. 28-9-1996). 
3. Subs. by Act 8 of 2011, s. 48, for “sub-section (2) of section 28” (w.e.f. 8-4-2011). 
4. Subs. by Act 10 of 2000, s. 85, for the first and second provisos (w.e.f. 12-5-2000). 
5. Subs. by Act 8 of 2011, s. 48, for “28AB” (w.e.f. 8-4-2011). 
6. Subs. by s. 48, ibid., for “sub-section (2) of section 28” (w.e.f. 8-4-2011). 
7. Ins. by Act 29 of 2006, s. 27 (w.e.f. 13-7-2006).  

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1[114AB.  Penalty  for  obtaining  instrument  by  fraud,  etc.—Where  any  person  has  obtained  any 
instrument by fraud, collusion, willful misstatement or suppression of facts and such instrument has been 
utilised by such person or any other person for discharging duty, the person to whom the instrument was 
issued shall be liable for penalty not exceeding the face value of such instrument. 

Explanation.—For  the  purposes  of  this  section,  the  expression  “instrument”  shall  have  the  same 

meaning as assigned to it in the Explanation 1 to section 28AAA.] 

115.  Confiscation  of  conveyances.—(1)  The  following  conveyances  shall  be 

liable 

to  

confiscation:— 

(a) any vessel which is or has been within the Indian customs waters, any aircraft which is or has 
been in India, or any vehicle which is or has been in a customs area, while constructed, adapted, altered 
or fitted in any manner for the purpose of concealing goods; 

(b) any conveyance from which the whole or any part of the goods is thrown overboard, staved or 

destroyed so as to prevent seizure by an officer of customs; 

(c) any conveyance which having been required to stop or land under section 106 fails to do so, 

except for good and sufficient cause; 

(d) any conveyance from which any warehoused goods cleared for exportation, or any other goods 
cleared for exportation under a claim for drawback, are unloaded, without the permission of the proper 
officer; 

(e) any conveyance carrying imported goods which has entered India and is afterwards found with 
the whole or substantial portion of such goods missing, unless the master of the vessel or aircraft is able 
to account for the loss of, or deficiency in, the goods. 

(2)  Any conveyance or animal used as a means of transport in the smuggling of any goods or in the 
carriage of any smuggled goods shall be liable to confiscation, unless the owner of the conveyance or animal 
proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and 
the person in charge of the conveyance or animal 2***: 

Provided that where any such conveyance is used for the carriage of goods or passengers for hire, the 
owner of any conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a 
fine not exceeding the market price of the goods which are sought to be smuggled or the smuggled goods, 
as the case may be. 

Explanation.—In this section, “market price” means market price at the date when the goods are seized. 

116.  Penalty for not accounting for goods.—If any goods loaded in a conveyance for importation 
into  India,  or  any  goods  transhipped  under  the  provisions  of  this  Act  or  coastal  goods  carried  in  a 
conveyance, are not unloaded at their place of destination in India, or if the quantity unloaded is short of 
the quantity to be unloaded at that destination, and if the failure to unload or the deficiency is not accounted 
for to the satisfaction of the 3[Assistant Commissioner of Customs or Deputy Commissioner of Customs], 
the person-in-charge of the conveyance shall be liable,— 

(a) in the case of goods loaded in a conveyance for importation into India or goods transhipped 
under the provisions of this Act, to a penalty not exceeding twice the amount of duty that would have 
been chargeable on the goods not unloaded or the deficient goods, as the case may be, had such goods 
been imported; 

(b) in the case of coastal goods, to a penalty not exceeding twice the amount of export duty that 
would have been chargeable on the goods not unloaded or the deficient goods, as the case may be, had 
such goods been exported. 

1. Ins. by Act 23 of 2019, s. 76 (w.e.f. 1-8-2019). 
2. The words “and that each of them had taken all such precautions against such use as are for the time being specified in the rules” 

omitted by Act 26 of 1988, s. 79 (w.e.f. 13-5-1988). 

3. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 

83 

 
                                                           
117. Penalties for contravention, etc., not expressly mentioned.—Any person who contravenes any 
provision  of  this  Act  or  abets  any  such  contravention  or  who  fails  to  comply  with  any  provision  of 
this Act with which it was his duty to comply, where no express penalty is elsewhere provided for such 
contravention or failure, shall be liable to a penalty not exceeding 1[four lakh rupees]. 

118. Confiscation of packages and their contents.—(a) Where any goods imported in a package are 
liable to confiscation, the package and any other goods imported in that package shall also be liable to 
confiscation. 

(b) Where any goods are brought in a package within the limits of a customs area for the purpose of 
exportation and are liable to confiscation, the package and any other goods contained therein shall also be 
liable to confiscation. 

119. Confiscation of goods used for concealing smuggled goods.—Any goods used for concealing 

smuggled goods shall also be liable to confiscation. 

Explanation.—In this section, “goods” does not include a conveyance used as a means of transport. 

120. Confiscation of smuggled goods notwithstanding any change in form, etc.—(1)   Smuggled 

goods may be confiscated notwithstanding any change in their form. 

(2) Where smuggled goods are mixed with other goods in such manner that the smuggled goods cannot 

be separated from such other goods, the whole of the goods shall be liable to confiscation: 

Provided that where the owner of such goods proves that he had no knowledge or reason to believe that 
they included any smuggled goods, only such part of the goods the value of which is equal to the value of 
the smuggled goods shall be liable to confiscation. 

121.  Confiscation of sale-proceeds of smuggled goods.—Where any smuggled goods are sold by a 
person having knowledge or reason to believe that the goods are smuggled goods, the sale-proceeds thereof 
shall be liable to confiscation. 

122.  Adjudication  of  confiscations  and  penalties.—In  every  case  under  this  Chapter  in  which 
anything is liable to confiscation or any person is liable to a penalty, such confiscation or penalty may be 
adjudged,— 

(a)  without  limit,  by  a 2[Principal  Commissioner  of  Customs  or  Commissioner  of  Customs]  or 

a 3[Joint Commissioner of Customs]; 

4[(b) up to such limit, by such officers, as the Board may, by notification, specify;] 

5[122A.  Adjudication Procedure.—(1) The adjudicating authority shall, in any proceeding under this 
Chapter or any other provision of this Act, give an opportunity of being heard to a party in a proceeding, if 
the party so desires. 

(2) The adjudicating authority may, if sufficient cause is shown at any stage of proceeding referred to 
in sub-section (1), grant time, from time to time, to the parties or any of them and adjourn the hearing for 
reasons to be recorded in writing: 

Provided that  no  such  adjournment  shall  be  granted  more  than  three  times  to  a  party  during  the 

proceeding.] 

1. Subs. by Act 23 of 2019, s. 77, for “one lakh rupees” (w.e.f. 1-8-2019). 
2. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
3. Subs. by Act 27 of 1999, s. 100, for “Deputy Commissioner of Customs” (w.e.f. 11-5-1999). 
4. Subs. by Act 13 of 2018, s. 93, for clauses (b) and (c) (w.e.f. 28-3-2018).  
5. Ins. by Act 23 of 2004, s. 67 (w.e.f. 10-9-2004). 

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123. Burden  of  proof  in  certain  cases.—1[(1) 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 of the goods so seized.] 

(2) This section shall apply to gold, 2[and manufactures thereof], watches, and any other class of goods 

which the Central Government may by notification in the Official Gazette specify. 

124. Issue of show cause notice before confiscation of goods, etc.—No order confiscating any goods 
or imposing any penalty on any person shall be made under this Chapter unless the owner of the goods or 
such person— 

(a) is given a notice in 3[writing with the prior approval of the officer of Customs not below the 
rank  of 4[an  Assistant  Commissioner  of  Customs],  informing]  him  of  the  grounds  on  which  it  is 
proposed to confiscate the goods or to impose a penalty; 

(b) is given an opportunity of making a representation in writing within such reasonable time as 
may be specified in the notice against the grounds of confiscation or imposition of penalty mentioned 
therein; and 

(c) is given a reasonable opportunity of being heard in the matter: 

Provided that the notice referred to in clause (a) and the representation referred to in clause (b) 

may, at the request of the person concerned be oral. 

5[Provided further that notwithstanding issue of notice under this section, the proper officer may 

issue a supplementary notice under such circumstances and in such manner as may be prescribed.] 

125. Option  to  pay  fine  in  lieu  of  confiscation.—(1)  Whenever  confiscation  of  any  goods 
is authorised by  this  Act,  the  officer  adjudging  it  may,  in  the  case  of  any  goods,  the  importation  or 
exportation whereof is prohibited under this Act or under any other law for the time being in force, and 
shall, in the case of any other goods, give to the owner of the goods 6[or, where such owner is not known, 
the person from whose possession or custody such goods have been seized,] an option to pay in lieu of 
confiscation such fine as the said officer thinks fit: 

7[Provided  that  where  the  proceedings  are  deemed  to  be  concluded  under  the  proviso  to  
sub-section (2) of section 28 or under clause (i) of sub-section (6) of that section in respect of the goods 
which are not prohibited or restricted, 8[no such fine shall be imposed]: 

Provided further that], without prejudice to the provisions of the proviso to sub-section (2) of section 
115, such fine shall not exceed the market price of the goods confiscated, less in the case of imported goods 
the duty chargeable thereon. 

1. Subs. by Act 36 of 1973, s. 4, for sub-section (1) (w.e.f. 1-9-1973). 
2. Subs. by Act 40 of 1989, s. 2, for “, diamonds, manufactures of gold or diamonds” (w.e.f. 26-10-1989). 
3. Subs. by Act 29 of 2006, s. 28, for “writing informing” (w.e.f. 13-7-2006). 
4. Subs. by Act 8 of 2011, s. 49, for “a Deputy Commissioner of Customs” (w.e.f. 8-4-2011). 
5. The proviso ins. by Act 13 of 2018, s. 94 (w.e.f. 28-3-2018). 
6. Ins. by Act 80 of 1985, s. 9 (w.e.f. 27-12-1985). 
7. Subs. by Act 13 of 2018, s. 95, for “Provided that” (w.e.f. 28-3-2018). 
8. Subs. by Act 23 of 2019, s. 78, for “the provisions of this section shall not apply” (w.e.f. 1-8-2019). 

85 

 
                                                           
1[(2)  Where any fine in lieu of confiscation of goods is imposed under sub-section (1), the owner of 
such goods or the person referred to in sub-section (1), shall, in addition, be liable to any duty and charges 
payable in respect of such goods.] 

2[(3) Where the fine imposed under sub-section (1) is not paid within a period of one hundred and 
twenty days from the date of option given thereunder, such option shall become void, unless an appeal 
against such order is pending. 

Explanation.—For  removal  of  doubts,  it  is  hereby  declared  that  in  cases  where  an  order  under  
sub-section (1) has been passed before the date on which the Finance Bill, 2018 receives the assent of the 
President and no appeal is pending against such order as on that date, the option under said sub-section may 
be  exercised  within  a  period  of  one  hundred  and  twenty  days  from  the  date  on  which  such  assent  is 
received.] 

126. On  confiscation,  property  to  vest  in  Central  Government.—(1) When any  goods  are 

confiscated under this Act, such goods shall thereupon vest in the Central Government. 

(2) The officer adjudging confiscation shall take and hold possession of the confiscated goods. 

127. Award  of  confiscation  or  penalty  by  customs  officers  not  to  interfere  with  other 
punishments.—The award of any confiscation or penalty under this Act by an officer of customs shall not 
prevent the infliction of any punishment to which the person affected thereby is liable under the provisions 
of Chapter XVI of this Act or under any other law. 

3[CHAPTER XIVA 

SETTLEMENT OF CASES 

127A. Definitions.—In this Chapter, unless the context otherwise requires,— 

(a) “Bench” means a Bench of the Settlement Commissioner; 

4[(b) “case” means any proceeding under this Act or any other Act for the levy,  assessment and 
collection of customs duty, pending before an adjudicating authority on the date on which an application 
under sub-section (1) of section 127B is made: 

Provided that when any proceeding is referred back 5*** by any court, Appellate Tribunal or any 
other authority, to the adjudicating authority for a fresh adjudication or decision, as the case may be, 
then such proceeding shall not be deemed to be a proceeding pending within the meaning of this clause;] 

(c) “Chairman” means the Chairman of the Settlement Commission; 

(d) “Commissioner (Investigation)” means an officer of the customs or a Central Excise Officer 
appointed as such Commissioner to conduct inquiry or investigation for the purposes of this Chapter; 

(e) “Member” means a Member of the Settlement Commission and includes the Chairman and the 

Vice Chairman; 

 (f)  “Settlement  Commission”  means  the 6[Customs, Central  Excise  and  Service Tax  Settlement 

Commission] constituted under section 32 of the Central Excise Act, 1944 (1 of 1944); and  

(g)  “Vice-Chairman” means a Vice-Chairman of the Settlement Commission. 

1. Subs. by Act 80 of 1985, s. 9, for sub-section (2) (w.e.f. 27-12-1985). 
2. Ins. by Act 13 of 2018, s. 95 (w.e.f. 28-3-2018). 
3. Ins. by Act 21 of 1998, s. 102 (w.e.f. 1-8-1998). 
4. Subs. by Act 22 of 2007, s. 100, for clause (b) (w.e.f. 1-6-2007). 
5. The words “in any appeal or revision, as the case may be,” omitted by Act 20 of 2015, s. 85 (w.e.f. 14-5-2015). 
6. Subs. by Act 25 of 2014, s. 83, for “Customs and Central Excise Settlement Commission” (w.e.f. 6-8-2014). 

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127B. Application  for  settlement  of  cases.—1[(1)  Any  importer,  exporter  or  any  other  person 
(hereinafter referred to as the applicant in this Chapter) may, in respect of a case, relating to him make an 
application, before adjudication to the Settlement Commission to have the case settled, in such form and in 
such manner as may be specified by rules, and containing a full and true disclosure of his duty liability 
which has not been disclosed before the proper officer, the manner in which such liability has been incurred, 
the additional amount of customs duty accepted to be payable by him and such other particulars as may be 
specified by rules including the particulars of such dutiable goods in respect of which he admits short levy 
on account of misclassification, under-valuation or inapplicability of exemption notification 2[or otherwise] 
and such application shall be disposed of in the manner hereinafter provided: 

Provided that no such application shall be made unless,— 

3[(a) the applicant has filed a bill of entry, or a shipping bill, or a bill of export, or made a baggage 
declaration, or a label or declaration accompanying the goods imported or exported through post or 
courier, as the case may be, and in relation to such document or documents, a show cause notice has 
been issued to him by the proper officer;] 

(b) the additional amount of duty accepted by the applicant in his application exceeds three lakh 

rupees; and 

(c) the applicant has paid the additional amount of customs duty accepted by him along with interest 

due under 4[section 28AA]: 

Provided further that no application shall be entertained by the Settlement Commission under this sub-

section in cases which are pending in the Appellate Tribunal or any court: 

Provided also that no application under this sub-section shall be made in relation to goods to which 
section 123 applies or to goods in relation to which any offence under the Narcotic Drugs and Psychotropic 
Substances Act, 1985 (61 of 1985) has been committed: 

Provided also  that  no  application  under  this  sub-section  shall  be  made  for  the  interpretation  of  the 

classification of the goods under the Customs Tariff Act, 1975 (51 of 1975). 

 5*   

 6*   

* 

* 

* 

* 

* 

* 

*] 

* 

(3)   Every  application  made  under  sub-section  (1)  shall  be  accompanied  by  such  fees  as  may  be 

specified by rules. 

(4)  An application made under sub-section (1) shall not be allowed to be withdrawn by the applicant. 

7[(5) Any person, other than an applicant referred to in sub-section (1), may also make an application 
to the Settlement Commission in respect of a show cause notice issued to him in a case relating to the 
applicant which has been settled or is pending before the Settlement Commission and such notice is pending 
before an adjudicating authority, in such manner and subject to such conditions, as may be specified by 
rules.] 

8[127C. Procedure  on  receipt  of  an  application  under  section  127B.—(1)  On  receipt  of  an 
application under section 127B, the Settlement Commission shall, within seven days from the date of receipt 
of the application, issue a notice to the applicant to explain in writing as to why the application made by 
him should be allowed to be proceeded with and after taking into consideration the explanation provided 

1. Subs. by Act 22 of 2007, s. 101, for sub-section (1) (w.e.f. 1-6-2007). 
2. Subs. by Act 14 of 2010, s. 57, for “but excluding the goods not included in the entry made under this Act” (w.e.f. 8-5-2010). 
3. Subs. by Act 25 of 2014, s. 84, for clause (a) (w.e.f. 6-8-2014). 
4. Subs. by Act 25 of 2014, s. 84, for “section 28AB” (w.e.f. 6-8-2014). 
5. Sub-section (1A) omitted by Act 20 of 2015, s. 86 (w.e.f. 14-5-2015). 
6. Sub-section (2) omitted by Act 25 of 2014, s. 84 (w.e.f. 6-8-2014). 
7. Ins. by Act 7 of 2017, s. 106 (w.e.f. 31-3-2017). 
8. Subs. by Act 22 of 2007, s. 102, for section 127C (w.e.f. 1-6-2007). 

87 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
by the applicant, the Settlement Commission, shall, within a period of fourteen days from the date of the 
notice, by an order, allow the application to be proceeded with or reject the application, as the case may be, 
and the proceedings before the Settlement Commission shall abate on the date of rejection: 

Provided that where no notice has been issued or no order has been passed within the aforesaid period 
by the Settlement Commission, the application shall be deemed to have been allowed to be proceeded with. 

 (2) A copy of every order under sub-section (1) shall be sent to the applicant and to the 1[Principal 

Commissioner of Customs or Commissioner of Customs] having jurisdiction. 

(3)  Where  an  application  is  allowed  or  deemed  to  have  been  allowed  to  be  proceeded  with  under  
sub-section  (1),  the  Settlement  Commission  shall,  within  seven  days  from  the  date  of  order  under  
sub-section  (1),  call  for  a  report  along  with  the  relevant  records  from  the 1[Principal  Commissioner  of 
Customs or Commissioner of Customs] having jurisdiction and the Commissioner shall furnish the report 
within a period of thirty days of the receipt of communication from the Settlement Commission: 

       Provided that where the Commissioner does not furnish the report within the aforesaid period of thirty 
days,  the  Settlement  Commission  shall  proceed  further  in  the  matter  without  the  report  of  the 
Commissioner. 

(4) Where a report of the Commissioner called for under sub-section (3) has been furnished within the 
period specified in that sub-section, the Settlement Commission may, after examination of such report, if it 
is of the opinion that any further enquiry or investigation in the matter is necessary, direct, for reasons to 
be recorded in writing, the Commissioner (Investigation) within fifteen days of the receipt of the report, to 
make or cause to be made such further enquiry or investigation and furnish a report within a period of ninety 
days of the receipt of the communication from the Settlement Commission, on the matters covered by the 
application and any other matter relating to the case: 

Provided that where the Commissioner (Investigation) does not furnish the report within the aforesaid 
period, the Settlement Commission shall proceed to pass an order under sub-section (5) without such report. 

(5)  After  examination  of  the  records  and  the  report of  the 1[Principal  Commissioner  of  Customs  or 
Commissioner of Customs] received under sub-section (3), and the report, if any, of the Commissioner 
(Investigation) of the Settlement Commission under sub-section (4), and after giving an opportunity to the 
applicant  and  to  the 1[Principal  Commissioner  of  Customs  or  Commissioner  of  Customs]  having 
jurisdiction to be heard, either in person or through a representative duly authorised in this behalf, and after 
examining such further evidence as may be placed before it or obtained by it, the Settlement Commission 
may, in  accordance with the provisions of this Act, pass such order  as it thinks fit on  the matters  covered 
by the  application and any other matter relating to the case not covered by the application, but referred to 
in the report of the 1[Principal Commissioner of Customs or Commissioner of Customs] and Commissioner 
(Investigation) under sub-section (3) or sub-section (4). 

2[(5A) The Settlement Commission may, at any time within three months from the date of passing of 
the  order  under  sub-section  (5),  amend  such  order  to  rectify  any  error  apparent  on  the  face  of  record, 
either suo motu or when such error is brought to its notice by the jurisdictional Principal Commissioner of 
Customs or Commissioner of Customs or the applicant: 

Provided that no amendment which has the effect of enhancing the liability of the applicant shall be 
made under this sub-section, unless the Settlement Commission has given notice of such intention to the 
applicant and the jurisdictional Principal Commissioner of Customs or Commissioner of Customs as the 
case may be, and has given them a reasonable opportunity of being heard.] 

3* 

* 

* 

* 

* 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
2. Ins. by Act 7 of 2017, s. 107 (w.e.f. 31-3-2017). 
3. Sub-section (6) omitted by Act 20 of 2015, s. 87 (w.e.f. 14-5-2015). 

88 

 
 
 
 
 
 
 
 
 
 
                                                           
(7)  Subject to the provisions of section 32A of the Central Excise Act, 1944 (1 of 1944), the materials 
brought on record before the Settlement Commission shall be considered by the Members of the concerned 
Bench  before  passing  any  order  under  sub-section  (5)  and, in relation to the  passing  of such order, the 
provisions of section 32D of the Central Excise Act, 1944 shall apply. 

(8)  The  order  passed  under  sub-section  (5)  shall  provide  for  the  terms  of  settlement  including  any 
demand by way of duty, penalty or interest, the manner in which any sums due under the settlement shall 
be paid and all other matters to make the settlement effective and in case of rejection contain the reasons 
therefore  and  it  shall  also  provide  that  the  settlement  shall  be  void  if  it  is  subsequently  found  by  the 
Settlement Commission that it has been obtained by fraud or misrepresentation of facts: 

Provided that the amount of settlement ordered by the Settlement Commission, shall not be less than 

the duty liability admitted by the applicant under section 127B. 

(9) Where any duty, interest, fine and penalty payable in pursuance of an order under sub-section (5) is 
not paid by the applicant within thirty days of receipt of a copy of the order by him, the amount which 
remains  unpaid,  shall  be  recovered  along  with  interest  due  thereon,  as  the  sums  due  to  the  Central 
Government by the proper officer having jurisdiction over the applicant in accordance with the provisions 
of section 142. 

(10) Where a settlement becomes void as provided under sub-section (8), the proceedings with respect 
to the matters covered by the settlement shall be deemed to have been revived from the stage at which the 
application was allowed to be proceeded with by the Settlement Commission and the proper officer having 
jurisdiction  may,  notwithstanding  anything  contained  in  any  other  provision  of this  Act,  complete  such 
proceedings at any time before the expiry of two years from the date of the receipt of communication that 
the settlement became void.] 

127D. Power  of  Settlement  Commission  to  order  provisional  attachment  to  protect  
revenue.—(1) Where, during the pendency of any proceeding before it, the Settlement Commission is of 
the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by 
order, attach provisionally any property belonging to the applicant in such manner as may be specified by 
rules. 

(2) Every provisional attachment made by the Settlement Commission under sub-section (1) shall cease 
to have effect from the date the sums due to the Central Government for which such attachment is made 
are discharged by the applicant and evidence to that effect is submitted to the Settlement Commission. 

127E. [Power of Settlement Commission to reopen completed proceedings.] Omitted by the Finance 

Act, 2015 (20 of 2015), s. 88 (w.e.f. 14-5-2015). 

127F. Power and procedure of Settlement Commission.—(1) In addition to the powers conferred on 
the Settlement Commission under Chapter V of the Central Excise Act, 1944 (1 of 1944), it shall have all 
the powers which are vested in an officer of the customs under this Act or the rules made thereunder. 

(2) Where an application made under section 127B has been allowed to be proceeded with under section 
127C, the Settlement Commission shall, until an order is passed under sub-section 1[(5)] of section 127C, 
have, subject to the provisions of sub-section 2[(4)] of that section, exclusive jurisdiction to exercise the 
powers and perform the functions of any officer of customs or Central Excise Officer as the case may be, 
under this Act or in the Central Excise Act, 1944 (1 of 1944), as the case may be, in relation to the case. 

(3)  In the absence of any express direction by the Settlement Commission to the contrary, nothing in 
this Chapter shall affect the operation of the provisions of this Act in so far as they relate to any matter 
other than those before the Settlement Commission. 

(4) The Settlement Commission shall, subject to the provisions of Chapter V of the Central Excise Act, 
1944 (1 of 1944) and this Chapter, have power to regulate its own procedure and the procedure of Benches 

1. Subs. by Act 22 of 2007, s. 104, for “(7)” (w.e.f. 1-6-2007). 
2. Subs. by s. 104, ibid., for “(6)” (w.e.f. 1-6-2007). 

89 

 
                                                           
thereof in all matters arising out of the exercise of its powers, or of the discharge of its functions, including 
the places at which the Benches shall hold their sittings. 

127G. Inspection, etc., of reports.—No person shall be entitled to inspect, or obtain copies of, any 
report made by any officer of the Customs to the Settlement Commission; but the Settlement Commission 
may, in its discretion, furnish copies thereof to any such person on an application made to it in this behalf 
and on payment of such fee as may be specified by rules: 

Provided that, for the purpose of enabling any person whose case is under consideration to rebut any 
evidence  brought  on  record  against  him  in  any  such  report,  the  Settlement  Commission  shall,  on  an 
application made in this behalf, and on payment by such person of such fee as may be specified by rules, 
furnish him with a certified copy of any such report or part thereof relevant for the purpose. 

127 H. Power of Settlement Commission to grant immunity from prosecution and penalty.—(1) 
The Settlement Commission may, if it is satisfied that any person who made the application for settlement 
under section 127B has co-operated with the Settlement Commission in the proceedings before it and has 
made a full and true disclosure of his duty liability, grant to such person, subject to such conditions as it 
may think fit to impose, immunity from prosecution for any offence under this Act 1[and also either wholly 
or in part from the imposition of any penalty and fine] under this Act, with respect to the case covered by 
the settlement: 

Provided that no such immunity shall be granted by the Settlement Commission in cases where the 
proceedings for the prosecution for any such offence have been instituted before the date of receipt of the 
application under section 127B. 

2* 

* 

* 

* 

* 

(2) An immunity granted to a person under sub-section (1) shall stand withdrawn if such person fails 
to pay any sum specified in the order of the settlement passed under 3[sub-section (5) of section 127C within 
the time specified in such order] or fails to comply with any other condition subject to which the immunity 
was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted. 

(3)  An  immunity  granted to  a  person  under  sub-section  (1)  may,  at  any  time,  be  withdrawn  by  the 
Settlement Commission, if it is satisfied that such person had, in the course of the settlement proceedings, 
concealed any particulars, material to the settlement or had given false evidence, and thereupon such person 
may be tried for the offence with respect to which the immunity was granted or for any other offence of 
which he appears to have been guilty in connection with the settlement and shall also become liable to the 
imposition  of  any  penalty  under  this  Act  to  which  such  person  would  have  been  liable,  had  no  such 
immunity been granted. 

 127-I. Power  of  Settlement  Commission  to  send  a  case  back  to  the  proper  officer.—(1) 
The Settlement Commission may, if it is of opinion that any person who made an application for settlement 
under section 127B has not co-operated with the Settlement Commission in the proceedings before it, send 
the case back to the proper officer who shall thereupon dispose of the case in accordance with the provisions 
of this Act as if no application under section 127B had been made. 

(2) For the purpose of sub-section (1), the proper officer shall be entitled to use all the materials and 
other information produced by the assessee before the Settlement Commission or the results of the inquiry 
held or evidence recorded by the Settlement Commission in the course of the proceedings before it as if 

1. Subs. by Act 22 of 2007, s. 105, for “or under the Indian Penal Code or under any other Central Act for the time being in force 

and also either wholly or in part from the imposition of any penalty, fine and interest” (w.e.f. 1-6-2007). 

2. The Explanation omitted by Act 20 of 2015, s. 89 (w.e.f. 14-5-2015). 
3. Subs. by Act 22 of 2007, s. 105, for “sub-section (7) of section 127C within the time specified in such order or within such 

further time as may be allowed by the Settlement Commission” (w.e.f. 1-6-2007). 

90 

 
 
 
 
 
 
 
 
                                                           
such materials, information, inquiry and evidence had been produced before such proper officer or held or 
recorded by him in the course of the proceedings before him. 

(3)  For  the  purposes  of  the  time  limit  under  section  28  and  for  the  purposes  of  interest  under  
section 28AA, in a case referred to in sub-section (1), the period commencing on and from the date of the 
application to the Settlement Commission under section 127B and ending with the date of receipt by the 
officer of customs of the order of the Settlement Commission sending the case back to the officer of customs 
shall be excluded. 

127J.  Order  of  settlement  to  be  conclusive.—Every  order  of  settlement  passed  under  
sub-section 1[(5)] of section 127C shall be conclusive as to the matters stated therein and no matter covered 
by such order shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this 
Act or under any other law for the time being in force. 

127K. Recovery  of  sums  due  under  order  of  settlement.—Any  sum  specified  in  an  order  of 
settlement passed under sub-section 2[(5)] of section 127C may, subject to such conditions, if any, as may 
be specified therein, be recovered, and any penalty for default in making payment of such sum may be 
imposed and recovered as sums due to the Central Government in accordance with the provisions of section 
142, by the proper officer having jurisdiction over the applicant. 

127L. Bar on subsequent application for settlement in certain cases.—3[(1)] 4[Where 5***] 

(i)  an  order  of  settlement  6***  provides  for  the  imposition  of  a  penalty  on  the  applicant  under 

section 127B for settlement, on the ground of concealment of particulars of his duty liability; or 

7[Explanation.—In this clause, the concealment of particulars of duty liability relates to any such 

concealment made from the officer of customs.] 

(ii) after the passing of an order of settlement 6*** in relation to a case, such person is convicted of 

any offence under this Act in relation to that case; or 

(iii) the case of such person is sent back to the proper officer by the Settlement Commission under 

section 127-I, 

then such person shall not be entitled to apply for settlement under section 127B in relation to any other 
matter. 

8* 

* 

* 

* 

* 

127M. Proceedings before Settlement Commission to be judicial proceedings.—Any proceedings 
under this Chapter before the Settlement Commission shall be deemed to be a judicial proceeding within 
the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 
1860). 

127MA.  [Certain  persons  who  have  filed  appeals  to  the  Appellate  Tribunal  entitled  to  make 
applications to the Settlement Commission.] Omitted by the Finance Act, 2007 (22 of 2007), s. 109 (w.e.f. 
1-6-2007). 

127N. Applications of certain provisions of Central Excise Act.—The provisions of Chapter V of 
the Central Excise Act, 1944 (1 of 1944) in so far as it is not inconsistent with the provisions of this Chapter 
shall apply in relation to proceedings before the Settlement Commission under this Chapter.] 

1. Subs. by Act 22 of 2007, s. 106, for “(7)” (w.e.f. 1-6-2007). 
2. Subs. by s. 107, ibid., for “(7)” (w.e.f. 1-6-2007). 
3. Section 127L renumbered as sub-section (1) thereof by s. 108, ibid. (w.e.f. 11-5-2007). 
4. Subs. by s. 108, ibid., for “where” (w.e.f. 11-5-2007). 
5. The words, figures and letters “before the 1st day of June, 2007” omitted by Act 14 of 2010, s. 59 (w.e.f. 8-5-2010). 
6. The certain words, brackets, figures and letters omitted by Act 20 of 2015, s. 90 (w.e.f. 14-5-2015). 
7. Ins. by Act 25 of 2014, s. 85 (w.e.f. 6-8-2014). 
8. Sub-section (2) omitted by 14 of 2010, s. 59 (w.e.f. 8-5-2010). 

91 

 
 
 
 
 
 
 
 
 
                                                           
1[CHAPTER XV 

APPEALS 

128.  Appeals to 2[Commissioner (Appeals)].—(1) Any person aggrieved by any decision or order 
passed under this Act by an officer of customs lower in rank than a 3[Principal Commissioner of Customs 
or Commissioner of Customs] may appeal to the 2[Commissioner (Appeals)] 4[within sixty days] from the 
date of the communication to him of such decision or order: 

5[Provided that the Commissioner (Appeals) may, if he is satisfied that the appellant was prevented by 
sufficient cause from presenting the appeal within the aforesaid period of sixty days, allow it to be presented 
within a further period of thirty days.] 

6[(1A) The Commissioner (Appeals) may, if sufficient cause is shown at any stage of hearing of an 
appeal, grant time, from time to time, to the parties or any of them and adjourn the hearing of the appeal 
for reasons to be recorded in writing: 

Provided that no such adjournment shall be granted more than three times to a party during hearing of 

the appeal.] 

(2) Every appeal under this section shall be in such form and shall be verified in such manner as may 

be specified by rules made in this behalf. 

128A.  Procedure  in  appeal.—(1)  The 7[Commissioner  (Appeals)]  shall  give  an  opportunity  to  the 

appellant to be heard if he so desires. 

(2) The 7[Commissioner (Appeals)] may, at the hearing of an appeal, allow the appellant to go into any 
ground of appeal not specified in the grounds of appeal, if the 7[Commissioner (Appeals)] is satisfied that 
the omission of that ground from the grounds of appeal was not wilful or unreasonable. 

(3) 8[The Commissioner (Appeals)] shall, after making such further inquiry as may be necessary, pass 

such order, as he thinks 9[just and proper,— 

(a) confirming, modifying or annulling the decision or order appealed against; or 

(b)  referring  the  matter  back  to  the  adjudicating  authority  with  directions  for  fresh  adjudication  or 

decision, as the case may be, in the following cases, namely:— 

(i)  where  an  order  or  decision  has  been  passed  without  following  the  principles  of  natural 

justice; or 

(ii) where no order or decision has been passed after re-assessment under section 17; or 

(iii) where an order of refund under section 27 has been issued by crediting the amount to Fund 

without recording any finding on the evidence produced by the applicant]:] 

      Provided that an order enhancing any penalty or fine in lieu of confiscation or  confiscating goods of 
greater value or reducing the amount of refund shall not be passed unless the appellant has been given a 
reasonable opportunity of showing cause against the proposed order: 

1. Subs. by Act 44 of 1980, s. 50 and The Fifth Schedule, for Chapter XV (w.e.f. 11-10-1982). 
2. Subs. by Act 22 of 1995, s. 50, for “Collector (Appeals)” (w.e.f. 26-5-1995). 
3. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
4. Subs. by Act 14 of 2001, s. 109, for “within three months” (w.e.f. 11-5-2001). 
5. Subs. by s. 109, ibid., for the proviso (w.e.f. 11-5-2001). 
6. Ins. by Act 23 of 2004, s. 68 (w.e.f. 10-9-2004). 
7. Subs. by Act 22 of 1995, s. 50, for “Collector (Appeals)” (w.e.f. 26-5-1995). 
8. Subs. by Act 14 of 2001, s. 110, for certain words and brackets (w.e.f. 11-5-2001). 
9. Subs. by Act 13 of 2018, s. 96, for “just and proper, confirming, modifying or annulling the decision or order appealed against” 

(w.e.f. 28-3-2018). 

92 

 
                                                           
      Provided further that where the 1[Commissioner (Appeals)] is of opinion that any duty has not been 
levied or has been short-levied or erroneously refunded, no order requiring the appellant to pay any duty 
not levied, short-levied or erroneously refunded shall be passed unless the appellant is given notice within 
the time-limit specified in section 28 to show cause against the proposed order. 

(4) The order of the 1[Commissioner (Appeals)] disposing of the appeal shall be in writing and shall 

state the points for determination, the decision thereon and the reasons for the decision. 

2[(4A) The Commissioner (Appeals) shall, where it is possible to do so, hear and decide every appeal 

within a period of six months from the date on which it is filed.] 

(5) On the disposal of the appeal, the 1[Commissioner (Appeals)] shall communicate the order passed 
by him to the appellant, the adjudicating authority 3[, the 4[Principal Chief Commissioner of Customs or 
Chief  Commissioner  of  Customs]  and  the 5[Principal  Commissioner  of  Customs  or  Commissioner  of 
Customs]]. 

129.  Appellate Tribunal.—(1) The Central Government shall constitute an Appellate Tribunal to be 
called  the  Customs,  Excise  and  6[Service  Tax]  Appellate  Tribunal  consisting  of  as  many  judicial  and 
technical  members  as  it  thinks  fit  to  exercise  the  powers  and  discharge  the  functions  conferred  on  the 
Appellate Tribunal by this Act. 

7[(2) A judicial member shall be a person who has for at least ten years held a judicial office in the 
territory of India or who has been a member of the 8[Indian Legal Service] and has held a post in Grade I 
of that service or any equivalent or higher post for at least three years, or who has been an advocate for at 
least ten years. 

Explanation.—For the purposes of this sub-section,— 

(i) in computing the period during which a person has held judicial office in the territory of India, 
there shall be included any period, after he has held any judicial office, during which the person has 
been an advocate or has held the office of a member of a tribunal or any post, under the Union or a 
State, requiring special knowledge of law; 

(ii) in computing the period during which a person has been an advocate, there shall be included 
any period during which the person has held a judicial office, or the office of a member of a tribunal or 
any post, under the Union or a State, requiring special knowledge of law after he became an advocate.] 

(2A) A technical member shall be a person who has been a member of the Indian Customs and Central 
Excise Service, Group A, and has held the post of 9[Principal Commissioner of Customs or Commissioner 
of Customs] or Central Excise or any equivalent or higher post for at least three years.] 

10[(3) The Central Government shall appoint— 

(a) a person who is or has been a Judge of a High Court; or 

(b) one of the members of the Appellate Tribunal,  

to be the President thereof.] 

(4) The Central Government may appoint one or more members of the Appellate Tribunal to be the 

Vice-President, or, as the case may be, Vice-Presidents, thereof. 

1. Subs. by Act 22 of 1995, s. 50, for “Collector (Appeals)” (w.e.f. 26-5-1995). 
2. Ins. by Act 14 of 2001, s. 110 (w.e.f. 11-5-2001). 
3. Subs. by Act 18 of 2005, s. 69, for “and the Commissioner of Customs” (w.e.f. 13-5-2005). 
4. Subs. by Act 25 of 2014, s. 78, for “Chief Commissioner of Customs” (w.e.f. 6-8-2014). 
5. Subs. by s. 78, ibid., for “Commissioner of Customs” (w.e.f. 6-8-2014). 
6. Subs. by Act 32 of 2003, s. 119, for “Gold (Control)” (w.e.f. 14-5-2003). 
7. Subs. by Act 21 of 1984, s. 39, for sub-section (2) (w.e.f. 11-5-1984). 
8. Subs. by Act 32 of 2003, s. 119, for “Central Legal Service” (w.e.f. 14-5-2003). 
9. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
10. Subs. by Act 33 of 1996, s. 65, for sub-section (3) (w.e.f. 28-9-1996). 

93 

 
 
                                                           
1* 

* 

* 

* 

* 

 (5)  2[A Vice-President] shall exercise such of the powers and perform such of the functions of the 

President as may be delegated to him by the President by a general or special order in writing. 

3[(6) On ceasing to hold office, the President, Vice-President or other Member shall not be entitled to 

appear, act or plead before the Appellate Tribunal.] 

 4[(7) Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, 
salaries and allowances, resignation, removal and the other terms and conditions of service of the President, 
Vice-President or other Members of the Appellate Tribunal appointed after the commencement of  5[the 
Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: 

Provided that the President. Vice-President and Member appointed before the commencement of Part 
XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions 
of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had 
not come into force.] 

129A. Appeals to the Appellate Tribunal.—(1) Any person aggrieved by any of the following orders 

may appeal to the Appellate Tribunal against such order— 

(a) a decision or order passed by the 6[Principal Commissioner of Customs or Commissioner of 

Customs] as an adjudicating authority; 

(b) an order passed by the 7[Commissioner (Appeals)] under section 128A; 

(c) an order passed by the Board or the Appellate 8[Commissioner of Customs] under Section 128, 

as it stood immediately before the appointed day; 

(d) an order passed by the Board or the 6[Principal Commissioner of Customs or Commissioner of 
Customs], either before or after the appointed day, under section 130, as it stood immediately before 
that day: 

9[Provided  that no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not have 
jurisdiction  to  decide  any  appeal  in  respect  of  any  order  referred  to  in  clause  (b)  if  such  order  relates  
to,— 

(a)  any goods imported or exported as baggage; 

(b)  any goods loaded in a conveyance for importation into India, but which are not unloaded at 
their place of destination in India, or so much of the quantity of such goods as has not been unloaded 
at any such destination if goods unloaded at such destination are short of the quantity required to be 
unloaded at that destination; 

(c)  payment of drawback as provided in Chapter X, and the rules made thereunder: 

Provided further that] the Appellate Tribunal may, in its discretion, refuse to admit an appeal in respect 

of an order referred to in clause (b) or clause (c) or clause (d) where— 

(i) the value of the goods confiscated without option having been given to the owner of the goods 

to pay a fine in lieu of confiscation under section 125; or 

1. Sub-section (4A) omitted by Act 32 of 2003, s. 119 (w.e.f. 14-5-2003). 
2. Subs. by s. 119, ibid., for “The Senior Vice-President or a Vice-President” (w.e.f. 14-5--2003). 
3. Ins. by Act 22 of 2007, s. 110 (w.e.f. 11-5-2007). 
4. Ins. by Act 7 of 2017, s. 175 (w.e.f. 26-5-2017) vide Notification S. O. No. 1696(E), dated (26-5-2017). 
5. Subs. by Act 33 of 2021, s. 12, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the 

provisions of section 184 of that Act” (w.e.f. 4-4-2021). 

6. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
7. Subs. by Act 22 of 1995, s. 50, for “Collector (Appeals)” (w.e.f. 26-5-1995). 
8. Subs. by s. 50, ibid., for “Collector of Customs” (w.e.f. 26-5-1995). 
9. Subs. by Act 21 of 1984, s. 40, for “Provided that” (w.e.f. 11-5-1984). 

94 

 
 
 
 
 
 
 
 
 
 
                                                           
(ii) in any disputed case, other than a case where the determination of any question having a relation 
to the rate of duty of customs or to the value of goods for purposes of assessment is in issue or is one 
of the points in issue, the difference in duty involved or the duty involved; or 

(iii) the amount of fine or penalty determined by such order, 

does not exceed 1[two lakh rupees]. 

2[(1A) Every appeal against any order of the nature referred to in the first proviso to sub-section (1), 
which  is  pending  immediately  before  the  commencement  of  section  40  of  the  Finance  Act,  1984  
(21 of 1984), before the Appellate Tribunal and any matter arising out of or connected with such appeal 
and which is so pending shall stand transferred on such commencement to the Central Government and the 
Central Government shall deal with such appeal or matter under section 129DD as if such appeal or matter 
were an application or a matter arising out of an application made to it under that section.] 

3[(1B) (i) The Board may, 4[by order], constitute such Committees as may be necessary for the purposes 

of this Act. 

(ii) Every Committee constituted under clause (i) shall consist of two Chief Commissioners of Customs 

or two Commissioners of Customs, as the case may be.] 

 (2) 5[The Committee of Commissioners of Customs may, if it is] of opinion that an order passed by 
the Appellate 6[Principal Commissioner of Customs or Commissioner of Customs] under section 128, as it 
stood immediately before the appointed day, or by the 7[Commissioner (Appeals)] under section 128A, is 
not legal or proper, direct the proper officer to appeal 8[on its behalf] to the Appellate Tribunal against such 
order: 

 9[Provided that where the Committee of 6[Principal Commissioners of Customs or Commissioners of 
Customs] differs in its opinion regarding the appeal against the order of the Commissioner (Appeals), it 
shall state the point or points on which it differs and make a reference to the jurisdictional 10[Principal Chief 
Commissioner of Customs or Chief Commissioner of Customs] who shall, after considering the facts of the 
order, if is of the opinion that the order passed by the Commissioner (Appeals) is not legal or proper, direct 
the proper officer to appeal to the Appellate Tribunal against such order. 

Explanation.—For the  purposes  of  this  sub-section,  “jurisdictional  Chief  Commissioner”  means 
the 10[Principal Chief Commissioner of Customs or Chief Commissioner of Customs] having jurisdiction 
over the adjudicating authority in the matter.] 

(3) Every appeal under this section shall be filed within three months from the date on which the order 
sought  to  be  appealed  against  is  communicated  to  the 7[Principal  Commissioner  of  Customs  or 
Commissioner of Customs], or as the case may be, the other party preferring the appeal. 

(4) On receipt of notice that an appeal has been preferred under this section, the party against whom 
the appeal has been preferred may, notwithstanding that he may not have appealed against such order or 
any part thereof, file, within forty-five days of the receipt of the notice, a memorandum of cross-objections 
verified  in such  manner  as  may  be  specified  by  rules  made  in  this  behalf  against  any  part  of  the  order 
appealed against and such memorandum shall be disposed of by the Appellate Tribunal as if it were an 
appeal presented within the time specified in sub-section (3). 

1. Subs. by Act 25 of 2014, s. 86, for “fifty thousand rupees” (w.e.f. 6-8-2014). 
2. Ins. by Act 21 of 1984, s. 40 (w.e.f. 11-5-1984). 
3. Ins. by Act 18 of 2005, s. 70 (w.e.f. 13-5-2005). 
4. Subs. by Act 25 of 2014, s. 86, for “by notification in the Official Gazette” (w.e.f. 6-8-2014). 
5. Subs. by Act 18 of 2005, s. 70, for “The Commissioner of Customs may, if he is” (w.e.f. 13-5-2005). 
6. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
7. Subs. by Act 22 of 1995, s. 50, for “Collector (Appeals)” (w.e.f. 26-5-1995).  
8. Subs. by Act 18 of 2005, s. 70, for “on his behalf” (w.e.f. 13-5-2005). 
9. The proviso ins. by Act 18 of 2008, s. 71 (w.e.f. 10-5-2008). 
10. Subs. by Act 25 of 2014, s. 78, for “Chief Commissioner of Customs” (w.e.f. 6-8-2014). 

95 

 
                                                           
(5)  The  Appellate  Tribunal  may  admit  an  appeal  or  permit  the  filing  of  a  memorandum  of  cross-
objections after the expiry of the relevant period referred to in  sub-section (3) or sub-section (4), if it is 
satisfied that there was sufficient cause for not presenting it within that period. 

1[(6) An appeal to the Appellate Tribunal shall be in such form and shall be verified in such manner as 
may be specified by rules made in this behalf and shall, irrespective of the date of demand of duty and 
interest or of levy of penalty in relation to which the appeal is made, be accompanied by a fee of,— 

(a) where the amount of duty and interest demanded and penalty levied by any officer of customs 

in the case to which the appeal relates is five lakh rupees or less, one thousand rupees; 

(b) where the amount of duty and interest demanded and penalty levied by any officer of customs 
in the case to which the appeal relates is more than five lakh rupees but not exceeding fifty lakh rupees, 
five thousand rupees; 

(c) where the amount of duty and interest demanded and penalty levied by any officer of customs 

in the case to which the appeal relates is more than fifty lakh rupees, ten thousand rupees: 

Provided that no such fee shall be payable in the case of an appeal referred to in sub-section (2) or a 

memorandum of cross-objections referred to in sub-section (4). 

(7) Every application made before the Appellate Tribunal,— 

(a) in an appeal 2*** for rectification of mistake or for any other purpose; or 

(b) for restoration of an appeal or an application, 

shall be accompanied by a fee of five hundred rupees: 

Provided that  no  such  fee  shall  be  payable  in  the  case  of  an  application  filed  by  or  on  behalf  of 

the 3[Principal Commissioner of Customs or Commissioner of Customs] under this sub-section.] 

129B.  Orders of Appellate Tribunal.—(1) The Appellate Tribunal may, after giving the parties to 
the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying 
or annulling the decision or order appealed against or may refer the case back to the authority which passed 
such decision or order with such directions as the Appellate Tribunal may think fit, for a fresh adjudication 
or decision, as the case may be, after taking additional evidence, if necessary. 

4[(1A) The Appellate Tribunal may, if sufficient cause is shown, at any stage of hearing of an appeal, 
grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded 
in writing: 

         Provided that no such adjournment shall be granted more than three times to a party during hearing 
of the appeal.] 

(2) The Appellate Tribunal may, at any time within 5[six months] from the date of the order, with a 
view  to  rectifying  any  mistake  apparent  from  the  record,  amend  any  order  passed  by  it  under  
sub-section (1) and shall make such amendments if the mistake is brought to its notice by the 3[Principal 
Commissioner of Customs or Commissioner of Customs] or the other party to the appeal: 

Provided that an amendment which has the effect of enhancing the assessment or reducing a refund or 
otherwise increasing the liability of the other party shall not be made under this sub-section, unless the 
Appellate  Tribunal  has  given  notice  to  him  of  its  intention  to  do  so  and  has  allowed  him  a  reasonable 
opportunity of being heard. 

1. Subs. by Act 23 of 2004, s. 69 for sub section (6) (w.e.f. 1-11-2004) vide Notification No. 120/2004-Cus. (N. T.), dated 25-10-

2004. 

2. The words “for grant of stay or” omitted by Act 25 of 2014, s. 86 (w.e.f. 6-8-2014). 
3. Subs. by s. 78, ibid., for “Commissioner of Customs” (w.e.f. 6-8-2014). 
4. Ins. by Act 23 of 2004, s. 70 (w.e.f. 10-9-2004). 
5. Subs. by Act 20 of 2002, s, 127, for “four years” (w.e.f. 11-5-2002). 

96 

 
 
 
                                                           
1[(2A) The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within 

a period of three years from the date on which such appeal is filed: 

2* 

* 

* 

* 

*] 

(3) The Appellate Tribunal shall send a copy of every order passed under this section to the 3[Principal 

Commissioner of Customs or Commissioner of Customs] and the other party to the appeal. 

(4) Save as otherwise provided in section 130 or section 130E, orders passed by the Appellate Tribunal 

on appeal shall be final. 

129C.  Procedure of Appellate Tribunal.—(1) The powers and functions of the Appellate Tribunal 
may  be  exercised  and  discharged  by  Benches  constituted  by  the  President  from  amongst  the  members 
thereof. 

(2)   Subject  to  the  provisions  contained  in 4[sub-section  (4)],  a  Bench  shall  consist  of  one  judicial 

member and one technical member. 

5* 

* 

* 

* 

* 

(4)  The  President  or  any  other  member  of  the  Appellate  Tribunal authorised in  this  behalf  by  the 
President may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a 
member where— 

(a) the value of the goods confiscated without option having been given to the owner of the goods 

to pay a fine in lieu of confiscation under section 125; or 

(b) in any disputed case, other than a case where the determination of any question having a relation 
to the rate of duty of customs or to the value of goods for purposes of assessment is in issue or is one 
of the points in issue, the difference in duty involved or the duty involved; or 

(c) the amount of fine or penalty involved,  

does not exceed 6[fifty lakh rupees]. 

7[(5) If the members of a Bench differ in opinion on any point, the point shall be decided according to 
the opinion of the majority, if there is a majority; but if the members are equally divided, they shall state 
the point or points on which they differ and make a reference to the President who shall either hear the point 
or points himself or refer the case for hearing on such point or points by one or more of the other members 
of the Appellate Tribunal and such point or points shall be decided according to the opinion of the majority 
of these members of the Appellate Tribunal who have heard the case, including those who first heard it.] 

(6) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate its own 
procedure and the procedure of the Benches thereof in all matters arising out of the exercise of its powers 
or of the discharge of its functions, including the places at which the Benches shall hold their sittings. 

(7) The Appellate Tribunal shall, for the purposes of discharging its functions, have the same powers 
as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect 
of the following matters, namely:— 

(a) discovery and inspection; 

(b) enforcing the attendance of any person and examining him on oath; 

(c) compelling the production of books of account and other documents; and 

(d) issuing commissions. 

1. Ins. by Act 20 of 2002, s. 127 (w.e.f. 11-5-2002). 
2. The first, second and third provisos omitted by Act 25 of 2014, s. 87 (w.e.f. 6-8-2014). 
3. Subs. by s. 78, ibid., for “Commissioner of Customs” (w.e.f. 6-8-2014). 
4. Subs. by Act 22 of 1995, s. 65, for “sub-sections (3) and (4)” (w.e.f. 26-5-1995). 
5. Sub-section (3) omitted by s. 65, ibid. (w.e.f. 26-5-1995). 
6. Subs. by Act 17 of 2013, s. 77, for “ten lakh rupees” (w.e.f. 10-5-2013). 
7. Subs. by Act 12 of 1990, s. 62, for sub-section (5) (w.e.f. 31-5-1990). 

97 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(8) Any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within 
the meaning of sections 193 and 228 and for the purpose of section 196 of the Indian Penal Code (45 of 
1860), and the Appellate Tribunal shall be deemed to be a Civil Court for all the purposes of section 195 
and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

129D. Powers  of 1[Committee  of 2[Principal  Chief  Commissioner  of  Customs  or  Chief 
Commissioner of Customs]] or 3[Principal Commissioner of Customs or Commissioner of Customs] 
to  pass  certain  orders.—(1)  The 1[Committee  of 2[Principal  Chief  Commissioner  of  Customs  or  Chief 
Commissioner of Customs]]  may, of its own motion, call for and examine the record of any proceeding in 
which a 3[Principal Commissioner of Customs or Commissioner of Customs] as an adjudicating authority 
has passed any decision or order under this Act for the purpose of satisfying itself as to the legality or 
propriety  of  any  such  decision  or  order  and  may,  by  order,  direct  such 4[Commissioner] 5[or  any  other 
Commissioner] to apply to the Appellate Tribunal for the determination of such points arising out of the 
decision or order as may be specified by the 1[Committee of 2[Principal Chief Commissioners of Customs 
or Chief Commissioners of Customs]] in its order: 

6[Provided that  where  the  Committee  of 7[Principal  Chief  Commissioners  of  Customs  or  Chief 
Commissioner of Customs] differs in its opinion as to the legality or propriety of the decision or order of 
the 3[Principal Commissioner of Customs or Commissioner of Customs], it shall state the point or points 
on which it differs and make a reference to the Board which, after considering the facts of the decision or 
order passed by the 3[Principal Commissioner of Customs or Commissioner of Customs], if is of the opinion 
that the decision or order passed by the 3[Principal Commissioner of Customs or Commissioner of Customs] 
is not legal or proper, may, by order, direct such Commissioner or any other Commissioner to apply to the 
Appellate Tribunal for  the determination  of  such  points  arising  out  of  the  decision  or order, as  may  be 
specified in its order.] 

(2) The 3[Principal Commissioner of Customs or Commissioner of Customs] may, of his own motion, 
call for and examine the record of any proceeding in which an adjudicating authority subordinate to him 
has passed any decision or order under this Act for the purpose of satisfying himself as to the legality or 
propriety of any such decision or order and may, by order, direct 8[such authority or any officer of Customs 
subordinate to him] to apply to the 9[Commissioner (Appeals)] for the determination of such points arising 
out  of  the  decision  or  order  as  may  be  specified  by  the 3[Principal  Commissioner  of  Customs  or 
Commissioner of Customs] in his order. 

10[(3) Every order under sub-section (1) or sub-section (2), as the case may be, shall be made within a 
period  of  three  months  from  the  date  of  communication  of  the  decision  or  order  of  the  adjudicating 
authority.] 

11[Provided that the Board may, on sufficient cause being shown, extend the said period by another 

thirty days.] 

1. Subs. by Act 18 of 2005, s. 71, for “Board” (w.e.f. 13-5-2005). 
2. Subs. by 25 of 2014, s. 78, for “Chief Commissioner of Customs” (w.e.f. 6-8-2014). 
3. Subs. by s. 78, ibid., for “Commissioner of Customs” (w.e.f. 6-8-2014). 
4. Subs. by Act 22 of 1995, s. 50, for “Collector” (w.e.f. 26-5-1995). 
5. Ins. by Act 14 of 2001, s. 111 (w.e.f. 11-5-2001). 
6. Ins. by Act 18 of 2008, s. 72 (w.e.f. 10-5-2008). 
7. Subs. by Act 25 of 2014, s. 78, for “Chief Commissioner of Customs” (w.e.f. 6-8-2014). 
8. Subs. by Act 29 of 2006, s. 29, for “such authority” (w.e.f. 13-7-2006). 
9. Subs. by Act 22 of 1995, s. 50, for “Collector (Appeals)” (w.e.f. 26-5-1995). 
10. Subs. by Act 18 of 2008, s. 72, for sub-section (3) (w.e.f. 10-5-2008). 
11. Ins. by Act 25 of 2014, s. 88 (w.e.f. 6-8-2014). 

98 

 
 
 
                                                           
(4) Where in pursuance of an order under sub-section (1) or sub-section (2), the adjudicating authority 
or  any  officer  of  customs authorised in  this  behalf  by  the 1[Principal  Commissioner  of  Customs  or 
Commissioner  of  Customs],  makes  an  application  to  the  Appellate  Tribunal  or  the 2[Commissioner 
(Appeals)]  within  a  period  of 3[one  month]  from  the  date  of  communication  of  the  order  under  
sub-section  (1)  or  sub-section  (2)  to  the  adjudicating  authority,  such  application  shall  be  heard  by  the 
Appellate Tribunal or the 2[Commissioner (Appeals)], as the case may be, as if such application were an 
appeal  made  against  the  decision  or  order  of  the  adjudicating  authority  and  the  provisions  of  this  Act 
regarding appeals, including the provisions of sub-section (4) of section 129A shall, so far as may be, apply 
to such application. 

4[(5) The provisions of this section shall not apply to any decision or order in which the determination 
of any question having a relation to the rate of duty or to the value of goods for the purposes of assessment 
of any duty is in issue or is one of the points in issue. 

Explanation.—For the purposes of this sub-section, the determination of a rate or duty in relation to 
any goods or valuation of any goods for the purposes of assessment of duty includes the determination of a 
question— 

(a) relating to the rate of duty for the time being in force, whether under the Customs Tariff Act, 
1975 (51 of 1975) or under any other Central Act providing for the levy and collection of any duty of 
customs in relation to any goods on or after the 28th day of February, 1986; or 

(b) relating to the value of goods for the purposes of assessment of any duty in cases where the 

assessment is made on or after the 28th day of February, 1986; or 

(c) whether any goods fall under a particular heading or sub-heading of the First Schedule or the 
Second Schedule to the Customs Tariff Act, 1975 (51 of 1975), or that any goods are or not covered by 
a particular notification or order issued by the Central Government granting total or partial exemption 
from duty; or 

(d) whether the value of any goods for the purposes of assessment of duty shall be enhanced or 
reduced  by  the  addition  or  reduction  of  the  amounts  in  respect  of  such  matters  as  are  specifically 
provided in this Act.] 

5[129DA. Powers of revision of Board or Collector of Customs in certain cases.—(1) The Board 
may, of its own motion or on the application of any aggrieved person or otherwise, call for and examine 
the record of any proceeding in which a Collector of Customs has passed any decision or order [not being 
a decision or order passed under sub-section (2) of this section] of the nature referred to in sub-section (5) 
of  section  129D  for  the  purpose  of  satisfying  itself  as  to  the  correctness,  legality  or  propriety  of  such 
decision or order and may pass such order thereon as it thinks fit. 

(2) The Collector of Customs may, of his own motion or on the application of any aggrieved person or 
otherwise, call for and examine the record of any proceeding in which an adjudicating authority subordinate 
to him has passed any decision or order of the nature referred to in sub-section (5) of section 129D for the 
purpose of satisfying himself as to the correctness, legality or propriety of such decision or order and may 
pass such order thereon as he thinks fit. 

(3) (a) No decision or order under this section shall be made so as to prejudicially affect any person 
unless such person is given a reasonable opportunity of making representation and if, he so desires, of being 
heard in his defence. 

(b) Where the Board or, as the case may be, the Collector of Customs is of the opinion that any duty 
has not been levied or has been short-levied or short-paid or erroneously refunded, no order requiring the 
affected person to pay any duty not levied or paid, short-levied or short-paid or erroneously refunded shall 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
2. Subs. by Act 22 of 1995, s. 50, for “Collector (Appeals)” (w.e.f. 26-5-1995). 
3. Subs. by Act 22 of 2007, s. 111, for “three month” (w.e.f. 11-5-2007). 
4. Ins. by Act 29 of 1988, s. 4 (w.e.f. 18-5-1988). 
5. Ins. by Act 29 of 1988, s. 5 (w.e.f. 18-5-1988). 

99 

 
                                                           
be passed under this section unless such person is given notice within the time limit specified in section 28 
to show cause against the proposed order. 

(4) No proceeding shall be initiated under sub-section (1) or sub-section (2) in respect of any decision 
or order after the expiry of a period of six months from the date of communication of such decision or order: 

Provided that in respect of any decision or order passed before the commencement of the Customs and 
Central Excises Laws (Amendment) Act, 1988 (29 of 1988), the provisions of this sub-section shall have 
effect as if for the words “six months”, the words “one year” were substituted. 

(5) Any person aggrieved by any decision or order passed under sub-section (1) or sub-section (2) may 
appeal to the Customs and Excise Revenues Appellate Tribunal established under section 3 of the Customs 
and Excise Revenues Appellate Tribunal Act, 1986 (62 of 1986), against such decision or order.] 

1[129DD. Revision by Central Government.—(1) The Central Government may, on the application 
of any person aggrieved by any order passed under section 128A, where the order is of the nature referred 
to in the first proviso to sub-section (1) of section 129A, annul or modify such order. 

2[Provided that the Central Government may in its discretion, refuse to admit an application in respect 
of an order where the amount of duty or fine or penalty, determined by such order does not exceed five 
thousand rupees.] 

Explanation.—For the purposes of this sub-section, “order passed under section 128A” includes an 
order  passed  under  that  section  before  the  commencement  of  section  40  of  the  Finance  Act,  1984  
(21 of 1984), against which an appeal has not been preferred before such commencement and could have 
been, if the said section had not come into force, preferred after such commencement, to the Appellate 
Tribunal. 

3[(1A) The 4[Principal Commissioner of Customs or Commissioner of Customs] may, if he is of the 
opinion that an order passed by the Commissioner (Appeals) under section 128A is not legal or proper, 
direct the proper officer to make an application on his behalf to the Central Government for revision of 
such order.] 

(2)  An  application  under  sub-section  (1)  shall  be  made  within  three  months  from  the  date  of  the 

communication to the applicant of the order against which the application is being made: 

Provided that  the  Central  Government  may,  if  it  is  satisfied  that  the  applicant  was  prevented  by 
sufficient cause from presenting the application within the aforesaid period of three months, allow it to be 
presented within a further period of three months. 

5[(3) An application under sub-section (1) shall be in such form and shall be verified in such manner as 

may be specified by rules made in this behalf and shall be accompanied by a fee of,— 

(a) two hundred rupees, where the amount of duty and interest demanded, fine or penalty levied by 

an officer of customs in the case to which the application relates is one lakh rupees or less; 

(b) one thousand rupees, where the amount of duty and interest demanded, fine or penalty levied 

by an officer of customs in the case to which the application relates is more than one lakh rupees: 

Provided that  no  such  fee  shall  be  payable  in  the  case  of  an  application  referred  to  in  

sub-section (1A).] 

(4)  The  Central  Government  may,  of  its  own  motion,  annul  or  modify  any  order  referred  to  in  

sub-section (1). 

(5) No order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value 

shall be passed under this section,— 

1. Ins. by Act 21 of 1984, s. 43 (w.e.f. 11-5-1984). 
2. The proviso ins. by Act 27 of 1999, s. 110 (w.e.f. 11-5-1999). 
3. Ins. by Act 27 of 1999, s. 110 (w.e.f. 11-5-1999).  
4. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
5. Subs. by Act 27 of 1999, s. 110, for sub-section (3) (w.e.f. 11-5-1999). 

100 

 
                                                           
(a)  in any case in which an order passed under section 128A has enhanced any penalty or fine in 

lieu of confiscation or has confiscated goods of greater value, and 

(b)  in any other case, unless the person affected by the proposed order has been given notice to 

show cause against it within one year from the date of the order sought to be annulled or modified. 

 (6) Where the Central Government is of opinion that any duty of customs has not been levied or has 
been short-levied, no order levying or enhancing the duty shall be made under this section unless the person 
affected by the proposed order is given notice to show cause against it within the time limit specified in 
section 28.] 

1[129E.  Deposit  of  certain  percentage  of  duty  demanded  or  penalty  imposed  before  filing 
appeal.—The  Tribunal  or  the  Commissioner  (Appeals),  as  the  case  may  be,  shall  not  entertain  any 
appeal,— 

(i) under sub-section (1) of section 128, unless the appellant has deposited seven and a half per 
cent. of the duty, in case where duty or duty and penalty are in dispute, or penalty, where such penalty 
is in dispute, in pursuance of a decision or an order passed by an officer of customs lower in rank than 
the 2[Principal Commissioner of Customs or Commissioner of Customs]; 

(ii) against the decision or order referred to in clause (a) of sub-section (1) of section 129A, unless 
the appellant has deposited seven and a half per cent. of the duty, in case where duty or duty and penalty 
are  in  dispute,  or  penalty,  where  such  penalty  is  in  dispute,  in  pursuance  of  the  decision  or  order 
appealed against; 

(iii) against the decision or order referred to in clause (b) of sub-section (1) of section 129A, unless 
the appellant has deposited ten per cent. of the duty, in case where duty or duty and penalty are in 
dispute, or penalty, where such penalty is in dispute, in pursuance of the decision or order appealed 
against: 

Provided that the amount required to be deposited under this section shall not exceed rupees ten 

rores: 

Provided further that the provisions of this section shall not apply to the stay applications and appeals 
pending  before  any  appellate  authority  prior  to  the  commencement  of  the  Finance  (No.  2)  Act,  2014  
(25 of 2014).] 

3[129EE. Interest on delayed refund of amount deposited under section 129E.—Where an amount 
deposited by the appellant under section 129E is required to be refunded consequent upon the order of the 
appellate authority, there shall be paid to the appellant interest at such rate, not below five per cent. and not 
exceeding  thirty-six  per  cent.  per  annum  as  is  for  the  time  being  fixed  by  the  Central  Government,  by 
notification in the Official Gazette, on such amount from the date of payment of the amount till, the date of 
refund of such amount: 

Provided that the amount deposited under section 129E, prior to the commencement of the Finance 
(No. 2) Act, 2014 (25 of 2014), shall continue to be governed by the provisions of section 129EE as it stood 
before the commencement of the said Act.] 

4[130. Appeal to High Court.—(1) An appeal shall lie to the High Court from every order passed in 
appeal by the Appellate Tribunal on or after the 1st day of July, 2003 (not being an order relating, among 
other things, to the determination of any question having a relation to the rate of duty of customs or to the 
value  of  goods  for  the  purposes  of  assessment),  if  the  High  Court  is  satisfied  that  the  case  involves  a 
substantial question of law. 

1. Subs. by Act 25 of 2014, s. 89, for section 129E (w.e.f. 6-8-2014). 
2. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
2. Subs. by Act 25 of 2014, s. 90, for section 129EE (w.e.f. 6-8-2014). 
4. Subs. by Act 32 of 2003, s. 120, for section 130 (w.e.f. 14-5-2003). 

101 

 
                                                           
(2)  The 1[Principal  Commissioner  of  Customs  or  Commissioner  of  Customs]  or  the  other  party 
aggrieved by any order passed by the Appellate Tribunal may file an appeal to the High Court and such 
appeal under this sub-section shall be— 

(a) filed within one hundred and eighty days from the date on which the order appealed against is 
received by the 1[Principal Commissioner of Customs or Commissioner of Customs] or the other party; 

(b) accompanied by a fee of two hundred rupees where such appeal is filed by the other party; 

(c) in the form of a memorandum of appeal precisely stating therein the substantial question of law 

involved. 

 2[(2A) The High Court may admit an appeal after the expiry of the period of one hundred and eighty 
days referred to in clause (a) of sub-section (2), if it is satisfied that there was sufficient cause for not filing 
the same within that period.] 

(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall 

formulate that question. 

(4) The  appeal  shall  be  heard  only  on  the  question  so  formulated,  and the  respondents  shall, at the 

hearing of the appeal, be allowed to argue that the case does not involve such question: 

Provided that nothing in this sub-section shall be deemed to take away or abridge  the power of the 
Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated 
by it, if it is satisfied that the case involves such question. 

(5) The High Court shall decide the question of law so formulated and deliver such judgment thereon 

containing the grounds on which such decision is founded and may award such cost as it deems fit. 

(6)  The High Court may determine any issue which— 

(a) has not been determined by the Appellate Tribunal; or 

(b)  has  been  wrongly  determined  by  the  Appellate  Tribunal,  by  reason  of  a  decision  on  such 

question of law as is referred to in sub-section (1). 

(7) When an appeal has been filed before the High Court, it shall be heard by a bench of not less than 
two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or of the 
majority, if any, of such Judges. 

(8) Where there is no such majority, the Judges shall state the point of law upon which they differ and 
the case shall, then, be heard upon that point only by one or more of the other Judges of the High Court and 
such point shall be decided according to the opinion of the majority of the Judges who have heard the case 
including those who first heard it. 

(9)  Save  as  otherwise  provided  in  this  Act,  the  provisions  of  the  Code  of  Civil  Procedure,  1908  
(5 of 1908) relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under 
this section.] 

3[130A.  Application  to  High  Court.—(1)  The 1[Principal  Commissioner  of  Customs  or 
Commissioner of Customs] or the other party may, within one hundred and eighty days of the date upon 
which he is served with notice of an order under section 129B passed 4[before the 1st day of July, 2003] 
(not being an order relating, among other things, to the determination of any question having a relation to 
the  rate  of  duty  of  customs  or  to  the  value  of  goods for  purposes  of  assessment),  by  application in the 
prescribed form, accompanied, where the application is made by the other party, by a fee of two hundred 
rupees, apply to the High Court to direct the Appellate Tribunal to refer to the High Court any question of 
law arising from such order of the Tribunal. 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
2. Ins. by Act 33 of 2009, s. 87 (w.e.f. 1-7-2003). 
3. Subs. by Act 27 of 1999, s. 112, for section 130A (w.e.f. 11-5-1999). 
4. Subs. by Act 32 of 2003, s. 121, for “on or after the 1st day of July, 1999” (w.e.f. 14-5-2003). 

102 

 
                                                           
(2) The 1[Principal Commissioner of Customs or Commissioner of Customs] or the other party applying 
to the High Court under sub-section (1) shall clearly state the question of law which he seeks to be referred 
to the High Court and shall also specify the paragraph in the order of the Appellate Tribunal relevant to the 
question sought to be referred. 

(3) On receipt of notice that an application has been made under sub-section (1), the person against 
whom such application has been made, may, notwithstanding that he may not have filed such application, 
file, within forty-five days of the receipt of the notice, a memorandum of cross-objections verified in the 
prescribed manner against any part of the order in relation to which an application for reference has been 
made and such memorandum shall be disposed of by the High Court as if it were an application presented 
within the time specified in sub-section (1). 

2[(3A)  The  High  Court  may  admit  an  application  or  permit  the  filing  of  a  memorandum  of  cross-
objections after the expiry of the relevant period referred to in sub-section (1) or sub-section (3), if it is 
satisfied that there was sufficient cause for not filing the same within that period.] 

(4) If, on an application made under sub-section (1), the High Court directs the Appellate Tribunal to 
refer the question of law raised in the application, the Appellate Tribunal shall, within one hundred and 
twenty days of the receipt of such direction, draw up a statement of the case and refer it to the High Court.] 
 3130B. Power of High Court or Supreme Court to require statement to be amended.—If the High 
Court or the Supreme Court is not satisfied that the statements in a case referred to it are sufficient to enable 
it to determine the questions raised thereby, the Court may refer the case back to the Appellate Tribunal for 
the purpose of making such additions thereto or alterations therein as it may direct in that behalf. 

4130C. Case before High Court to be heard by not less than two judges.—(1) When any case has 
been referred to the High Court 5[under section 130 or section 130A] it shall be heard by a Bench of not 
less than two judges of the High Court and shall be decided in accordance with the opinion of such judges 
or of the majority, if any, of such judges. 

(2) Where there is no such majority, the judges shall state the point of law upon which they differ and 
the case shall then be heard upon that point only by one or more of the other judges of the High Court, and 
such point shall be decided according to the opinion of the majority of the judges who have heard the case 
including those who first heard it. 

6130D. Decision of High Court or Supreme Court on the case stated.—(1) The High Court or the 
Supreme Court hearing any such case shall decide the questions of law raised therein, and shall deliver its 
judgment thereon containing the grounds on which such decision is founded and a copy of the judgment 
shall be sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which 
shall pass such orders as are necessary to dispose of the case in conformity with such judgment. 

7[(1A) Where the High Court delivers a judgment in an appeal filed before it under section 130, effect 
shall be given to the order passed on the appeal by the proper officer on the basis of a certified copy of the 
judgment.] 

(2) The costs of any 8[reference to the High Court or an appeal to the High Court or the Supreme Court 
as the case may be] which shall not include the fee for making the reference shall be in the discretion of the 
Court. 

 130E. Appeal to Supreme Court.—An appeal shall lie to the Supreme Court from— 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
2. Ins. by Act 33 of 2009, s. 88 (w.e.f. 1-7-1999). 
3. Section 130B to be omitted by  Act 49 of 2005, s. 30 (28-12-2005). This amendment has been struck down by the Supreme 

Court’s order dated 25th September, 2014 in the Madras Bar Association Vs Union of India. 

4. Section 130C to be omitted by Act 49 of 2005, s. 30 and the Schedule (28-12-2005). This amendment has been struck down by 

the Supreme Court’s order dated 25th September, 2014 in the Madras Bar Association Vs Union of India. 

5. Subs. by Act 27 of 1999, s. 113, for “under section 130” (w.e.f. 11-5-1999). 
6. Section 130D to be omitted by Act 49 of 2005, s. 30 and the Schedule (28-12-2005). This amendment has been struck down by 

the Supreme Court’s order dated 25th September, 2014 the Madras Bar in Association Vs Union of India. 

7. Ins. by Act 32 of 2003, s. 122 (w.e.f. 1-7-2003). 
8. Subs. by s. 122, ibid., for “reference to the High Court or the Supreme Court” (w.e.f. 14-5-2003). 

103 

 
                                                           
1[(a) any judgment of the High Court delivered— 

(i)  in an appeal made under section 130; or 

(ii) on a reference made under section 130 by the Appellate Tribunal before the 1st day of July, 

2003; 

(iii) on a reference made under section 130A, 

in any case which, on its own motion or on an oral application made by or on behalf of the party aggrieved, 
immediately after passing of the judgment, the High Court certifies to be a fit one for appeal to the Supreme 
Court; or] 

(b)  any  order  passed 2[before  the  establishment  of  the  National  Tax  Tribunal]  by  the  Appellate 
Tribunal relating, among other things, to the determination of any question having a relation to the rate 
of duty of customs or to the value of goods for purposes of assessment. 

130F.   Hearing before Supreme Court.—(1) The provisions of the Code of Civil Procedure, 1908 (5 
of 1908), relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under 
section 130E as they apply in the case of appeals from decrees of a High Court: 

Provided that nothing in this sub-section shall be deemed to affect the provisions of sub-section (1) of 

section 130D or section 131. 

(2) The costs of the appeal shall be in the discretion of the Supreme Court. 

(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to 
the order of the Supreme Court in the manner provided in section 130D in the case of a judgment of the 
High Court. 

131. Sums due to be paid notwithstanding reference, etc.—Notwithstanding that a reference has 
been  made  to  the  High  Court  or  the  Supreme  Court  or  an  appeal  has  been  preferred  to  the  Supreme 
Court, 3[under this Act before the commencement of the National Tax Tribunal Act, 2005] sums due to the 
Government  as  a  result  of  an  order  passed  under  sub-section  (1)  of  section  129B  shall  be  payable  in 
accordance with the order so passed. 

131A.  Exclusion  of  time  taken  for  copy.—In  computing  the  period  of  limitation  specified  for  an 
appeal or application under this Chapter, the day on which the order complained of was served, and if the 
party preferring the appeal or making the application was not furnished with a copy of the order when the 
notice of the order was served upon him, the time requisite for obtaining a copy of such order shall be 
excluded. 

131B.  Transfer  of  certain  pending  proceedings  and  transitional  provisions.—(1)  Every  appeal 
which is pending immediately before the appointed day before the Board under section 128, as it stood 
immediately before that day, and any matter arising out of or connected with such appeal and which is so 
pending  shall  stand  transferred  on  that  day  to  the  Appellate  Tribunal  and  the  Appellate  Tribunal  may 
proceed with such appeal or matter from the stage at which it was on that day: 

Provided that the appellant may demand that before proceeding further with that appeal or matter, he 

may be re-heard. 

(2)  Every  proceeding  which  is  pending  immediately  before  the  appointed  day  before  the  Central 
Government under section 131, as it stood immediately before that day, and any matter arising out of or 
connected with such proceeding and which is so pending shall stand transferred on that day to the Appellate 
Tribunal and the Appellate Tribunal may proceed with such proceeding or matter from the stage at which 
it was on that day as if such proceeding or matter were an appeal filed before it: 

Provided that if any such proceeding or matter relates to an order where— 

1. Subs. by Act 32 of 2003, s. 123, for clause (a) (w.e.f. 14-5-2003). 
2. Ins. by Act 49 of 2005, s. 30 and the Schedule (w.e.f. 28-12-2005). This amendment has been struck down by the Supreme 

Court’s order dated 25th September, 2014 in the Madras Bar Association Vs Union of India. 

3. Ins. by Act 49 of 2005, s. 30 and the Schedule (w.e.f. 28-12-2005). This amendment has been struck down by the Supreme 

Court’s order dated 25th September, 2014 in the Madras Bar Association Vs Union of India. 

104 

 
                                                           
(a) the value of the goods confiscated without option having been given to the owner of the goods 

to pay a fine in lieu of confiscation under section 125; or 

(b) in any disputed case, other than a case where the determination of any question having a relation 
to the rate of duty of customs or to the value of goods for purposes of assessment is in issue or is one 
of the points in issue, the difference in duty involved or the duty involved; or 

(c) the amount of fine or penalty determined by such order, 

does not exceed ten thousand rupees, such proceeding or matter shall continue to be dealt with by the 
Central Government as if the said section 131 had not been substituted: 

      Provided further that the applicant or the other party may make a demand to the Appellate Tribunal that 
before proceeding further with that proceeding or matter, he may be re-heard. 

(3)  Every  proceeding  which  is  pending  immediately  before  the  appointed  day  before  the  Board  or 
the 1[Principal  Commissioner  of  Customs  or  Commissioner  of  Customs]  under  section  130,  as  it  stood 
immediately before that day, and any matter arising out of or connected with such proceeding and which is 
so pending shall continue to be dealt with by the Board or the 1[Principal Commissioner of Customs or 
Commissioner of Customs], as the case may be, as if the said section had not been substituted. 

(4) Any person who immediately before the appointed day was authorised to appear in any appeal or 
proceeding transferred under sub-section (1) or sub-section (2) shall, notwithstanding anything contained 
in  section  146A,  have  the  right  to  appear  before  the  Appellate  Tribunal  in  relation  to  such  appeal  or 
proceeding. 

2[131BA. Appeal not to be filed in certain cases.—(1) The Board may, from time to time, issue orders 
or instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating 
the  filing  of  appeal,  application,  revision  or  reference  by  the 1[Principal  Commissioner  of  Customs  or 
Commissioner of Customs] under the provisions of this Chapter. 

(2)  Where,  in  pursuance  of  the  orders  or  instructions  or  directions,  issued  under  sub-section  (1), 
the 1[Principal  Commissioner  of  Customs  or  Commissioner  of  Customs]  has  not  filed  an  appeal, 
application, revision or reference against any decision or order passed under the provisions of this Act, it 
shall not preclude such 1[Principal Commissioner of Customs or Commissioner of Customs] from filing 
any  appeal,  application,  revision  or  reference  in  any  other  case  involving  the  same  or  similar  issues  or 
questions of law. 

(3)  Notwithstanding  the  fact  that  no  appeal,  application,  revision  or  reference  has  been  filed  by 
the 1[Principal  Commissioner  of  Customs  or  Commissioner  of  Customs]  pursuant  to  the  orders  or 
instructions  or  directions  issued under  sub-  section (1),  no  person,  being  a  party  in  appeal,  application, 
revision  or  reference  shall  contend  that   the 1[Principal  Commissioner  of  Customs  or  Commissioner  of 
Customs]  has acquiesced in the decision on the disputed issue by not filing appeal, application, revision or 
reference. 

(4) 3[The  Commissioner  (Appeals)  or  the  Appellate  Tribunal  or  the  court]  hearing  an  appeal, 
application,  revision  or  reference  shall  have  regard  to  the  circumstances  under  which  the  appeal, 
application,  revision  or  reference  was  not  filed  by  the 1[Principal  Commissioner  of  Customs  or 
Commissioner  of  Customs]  in  pursuance  of  orders  or  instructions  or  directions  issued    under  
sub-section (1). 

(5) Every order or instruction or direction issued by the Board on or after the 20th   day of October, 2010, 
but before the date on which the Finance Bill, 2011 receives the assent of the President, fixing monetary 
limits for filing appeal, application, revision or reference shall be deemed to have been issued under sub-
section (1), and the provisions of sub-sections (2), (3) and (4) shall apply accordingly.] 

131C. Definitions.—In this Chapter— 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
2. Ins. by Act 8 of 2011, s. 50 (w.e.f. 20-10-2008). 
3. Subs. by Act 25 of 2014, s. 91, for “The Appellate Tribunal or court” (w.e.f. 6-8-2014). 

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(a) “appointed day” means the date of coming into force of the amendments to this Act specified 

in Part I of the Fifth Schedule to the Finance (No. 2) Act, 1980 (44 of 1980); 

1[(b) High Court” means,— 

(i) in relation to any State, the High Court for that State; 

(ii) in relation to a Union territory to which the jurisdiction of the High Court of a State has 

been extended by law, that High Court; 

(iii) in relation to the Union territories of Dadra and Nagar Haveli and 2[Daman and Diu], the 

High Court at Bombay; 

(iv) in relation to any other Union territory, the highest court of civil appeal for that territory 

other than the Supreme Court of India;] 

 (c) “President” means the President of the Appellate Tribunal. 

CHAPTER XVI 

OFFENCES AND PROSECUTIONS 

 132. False declaration, false documents, etc.—Whoever makes, signs or uses, or causes to be made, 
signed or used, any declaration, statement or document in the transaction of any business relating to the 
customs, knowing or having reason to believe that such declaration, statement or document is false in any 
material particular, shall be punishable with imprisonment for a term which may extend to 3[two years], or 
with fine, or with both. 

133. Obstruction of officer of customs.—If any person intentionally obstructs any officer of customs 
in the exercise of any powers conferred under this Act, such person shall be punishable with imprisonment 
for a term which may extend to 4[two years], or with fine, or with both. 

134. Refusal to be X-rayed.—If any person— 

(a)  resists  or  refuses  to  allow  a  radiologist  to  screen  or  to  take  X-ray  picture  of  his  body  in 

accordance with an order made by a Magistrate under section 103, or 

(b) resists or refuses to allow suitable action being taken on the advice and under the supervision 
of  a  registered  medical  practitioner  for  bringing  out  goods liable to confiscation  secreted  inside  his 
body, as provided in section 103, 

he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with 
both. 

135. Evasion of duty or prohibitions.—5[(1) Without prejudice to any action that may be taken under 

this Act, if any person— 

(a) is in relation to any goods in any way knowingly concerned in misdeclaration of value or in any 
fraudulent evasion or attempt at evasion of any duty chargeable thereon or of any prohibition for the 
time being imposed under this Act or any other law for the time being in force with respect to such 
goods; or 

(b)  acquires  possession  of  or 

removing, 
depositing, harbouring, keeping, concealing, selling or purchasing or in any other manner dealing with 
any goods which he knows or has reason to believe are liable to confiscation under Section 111 or 
Section 113, as the case may be; or 

in  any  way  concerned 

in  carrying, 

is 

1. Clause (b) shall be omitted by Act 49 of 2005, s. 30 and the Schedule (28-12-2005). This amendment has been struck down by 

the Supreme Court’s order dated 25th September, 2014 in the Madras Bar Association Vs Union of India. 

2. Subs. by Act 18 of 1987, s. 5, for “Goa, Daman and Diu” (w.e.f. 30-5-1987). 
3. Subs. by Act 29 of 2006, s. 30, for “six months” (w.e.f. 13-7-2006). 
4. Subs. by s. 31, ibid., for “six months” (w.e.f. 13-7-2006). 
5. Subs. by Act 22 of 2007, s. 112, for sub-section (1) (w.e.f. 11-5-2007). 

106 

 
                                                           
(c) attempts to export any goods which he knows or has reason to believe are liable to confiscation 

under Section 113; or 

(d) fraudulently avails of or attempts to avail of drawback or any exemption from duty provided 

under this Act in connection with 1[export of goods; or] 

2[(e)  obtains  an  instrument  from  any  authority  by  fraud,  collusion,  willful  misstatement  or 

suppression of facts and such instrument has been utilised by such person or any other person,] 

he shall be punishable,— 

(i) in the case of an offence relating to,— 

(A) any goods the market price of which exceeds one crore of rupees; or 

(B) the evasion or attempted evasion of duty exceeding 3[fifty lakh] of rupees; or 

(C)  such  categories  of  prohibited  goods  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, specify; or 

(D) fraudulently availing of or attempting to avail of drawback or any exemption from duty referred 
to in clause (d), if the amount of drawback or exemption from duty exceeds 3[fifty lakh] 4[of rupees; 
or] with imprisonment for a term which may extend to seven years and with fine:  

5[(E)  obtaining  an  instrument  from  any  authority  by  fraud,  collusion,  willful  misstatement  or 
suppression of facts and such instrument has been utilised by any person, where the duty relatable to 
utilisation of the instrument exceeds fifty lakh rupees.] 

Provided  that  in  the  absence  of  special  and  adequate  reasons  to  the  contrary  to  be  recorded  in  the 

judgment of the court, such imprisonment shall not be for less than one year; 

(ii) in any other case, with imprisonment for a term which may extend to three years, or with fine, 

or with both.] 

6[(2) If any person convicted of an offence under this section or under sub-section (1) of section 136 is 
again convicted of an offence under this section, then, he shall be punishable for the second and for every 
subsequent offence with imprisonment for a term which may extend to seven years and with fine: 

Provided that  in  the  absence  of  special  and  adequate  reasons  to  the  contrary  to  be  recorded  in  the 

judgment of the court such imprisonment shall not be for less than 7[one year]. 

  (3) For the purposes of sub-sections (1) and (2), the following shall not be considered as special and 

adequate reasons for awarding a sentence of imprisonment for a term of less than 5[one year], namely:— 

(i) the fact that the accused has been convicted for the first time for an offence under this Act; 

(ii) the fact that in any proceeding under this Act, other than a prosecution, the accused has been 
ordered  to  pay  a  penalty  or  the  goods  which  are  the  subject  matter  of  such  proceedings  have  been 
ordered  to  be  confiscated  or  any  other  action  has  been  taken  against  him  for  the  same  act  which 
constitutes the offence; 

(iii) the fact that the accused was not the principal offender and was acting merely as a carrier of 

goods or otherwise was a secondary party to the commission of the offence; 

(iv) the age of the accused.] 

1. Subs. by Act 23 of 2019, s. 79, for “export of goods” (w.e.f. 1-8-2019). 
2. Ins. by s. 79, ibid. (w.e.f. 1-8-2019). 
3. Subs. by Act 17 of 2013, s. 78, for “thirty lakh” (w.e.f. 10-5-2013). 
4. Subs. by Act 23 of 2019, s. 79, for “of rupees,” (w.e.f. 1-8-2019). 
5. Ins. by s. 79, ibid. (w.e.f. 1-8-2019). 
6. Ins. by Act 36 of 1973, s. 5 (w.e.f. 1-9-1973). 
7. Subs. by Act 25 of 1978, s. 16, for “six months” (w.e.f. 1-7-1978).  

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1[Explanation.—For the purposes of this section, the expression "instrument" shall have the same 

meaning as assigned to it in the Explanation 1 to section 28AAA.] 
2[135A. Preparation.—If  a  person  makes  preparation  to  export  any  goods  in  contravention  of  the 
provisions of this Act, and from the circumstances of the case it may be reasonably inferred that if not 
prevented by circumstances independent of his will, he is determined to carry out his intention to commit 
the offence, he shall be punishable with imprisonment for a term which may extend to three years, or with 
fine, or with both. 

3[135AA. Protection of data.— (1) If a person publishes any information, that is furnished to customs 
by an exporter or importer under this Act, relating to the value or classification or quantity of goods entered 
for export from India, or import into India, along with the  identity of the persons involved or in a manner 
that leads to disclosure of such identity, unless required so to do under any law for the time being in force 
or by specific authorisation of such exporter or importer, he shall be punishable with imprisonment for a 
term which may extend to six months, or with fine which may extend to fifty thousand rupees, or with both. 

(2) Nothing contained in this section shall apply to— 

(a) any publication made by or on behalf of the Central Government; 
(b) data sourced from any publication made by or on behalf of the Central Government for  analysis 

of trends in India's international trade and dissemination thereof. 

Explanation.––For the purposes of this section, the expression “publishes” includes reproducing 

the information in printed or electronic form and making it available for the public.] 
135B. Power  of  court  to  publish  name,  place  of  business,  etc.,  of  persons  convicted  under  the 
Act.—(1) Where any person is convicted under this Act for contravention of any of the provisions thereof, 
it shall be competent for the court convicting the person to cause the name and place of business or residence 
of such person, nature of the contravention, the fact that the person has been so convicted and such other 
particulars as the court may consider to be appropriate in the circumstances of the case, to be published at 
the expense of such person in such newspapers or in such manner as the court may direct. 

(2) No publication under sub-section (1) shall be made until the period for preferring an appeal against 
the orders of the court has expired without any appeal having been preferred, or such an appeal, having 
been preferred, has been disposed of. 

(3)  The  expenses  of  any  publication  under  sub-section  (1)  shall  be  recoverable  from  the  convicted 

person as if it were a fine imposed by the court.] 

136. Offences by officers of customs.—(1) If any officer of customs enters into or acquiesces in any 
agreement  to  do,  abstains from  doing,  permits, conceals  or 4[connives  at  any  act  or  thing,  whereby  any 
fraudulent export  is effected or] any  duty of customs  leviable on  any goods, or any prohibition  for the  
time being in force under this Act or any other law for the time being in force with respect to any goods is 
or may be evaded, he shall be punishable with imprisonment for a term which may extend to 5[three years], 
or with fine, or with both. 

(2) If any officer of customs,— 

(a) requires any person to be searched for goods liable to confiscation or any  document relating 
thereto, without having reason to believe that he has such goods or document secreted about his person; 
or 

(b)   arrests  any  person  without  having  reason  to  believe  that  he  has  been  guilty  of  an  offence 

punishable under section 135; or 

(c)  searches or authorises any other officer of customs to search any place without having reason 
to believe that any goods, documents or things of the nature referred to in section 105 are secreted in 
that place, 

he shall be punishable with imprisonment for a term which may extend to six months, or with fine which 
may extend to one thousand rupees, or with both. 

1. Ins. by Act 23 of 2019, s. 79 (w.e.f. 1-8-2019). 
2. Ins. by Act 36 of 1973, s. 6 (w.e.f. 1-9-1973). 
3. Ins. by Act 6 of 2022, s. 95 (w.e.f. 30-3-2022). 
4. Subs. by Act 32 of 2003, s. 125, for “connives at any act or thing whereby” (w.e.f. 14-5-2003). 
5. Subs. by Act 36 of 1973, s. 7, for “two years” (w.e.f. 1-9-1973). 

108 

 
                                                           
(3) If any officer of customs, except in the discharge in good faith of his duty as such officer or in 
compliance with any requisition made under any law for the time being in force, discloses any particulars 
learnt by him in his official capacity in respect of any goods, he shall be punishable with imprisonment for 
a term which may extend to six months, or with fine which may extend to one thousand rupees, or with 
both. 

137.  Cognizance of offences.—(1) No court shall take cognizance of any offence under section 132, 
section 133, section 134 or 1[section 135 or section 135A 2[or section 135AA]], except with the previous 
sanction of the 3[Principal Commissioner of Custom or Commissioner of Customs]. 

(2) No court shall take cognizance of any offence under section 136,— 

(a) where the offence is alleged to have been committed by an officer of customs not lower in rank 
than 4[Assistant  Commissioner  of  Customs  or  Deputy  Commissioner  of  Customs],  except  with  the 
previous sanction of the Central Government; 

(b) where the offence is alleged to have been committed by an officer of customs lower in rank 
than 4[Assistant  Commissioner  of  Customs  or  Deputy  Commissioner  of  Customs]  except  with  the 
previous sanction of the 3[Principal Commissioner of Customs or Commissioner of Customs]. 
5[(3)  Any  offence  under  this  Chapter  may,  either  before  or  after  the  institution  of  prosecution,  be 
compounded by the 6[Principal Chief Commissioner of Customs or Chief Commissioner of Customs] on 
payment, by the person accused of the offence to the Central Government, of 7[such compounding amount 
and in such manner of compounding] as may be specified by rules.] 

8[Provided that nothing contained in this sub-section shall apply to— 

(a) a person who has been allowed to compound once in respect of any offence under sections 135 

and 135A; 

(b) a person who has been accused of committing an offence under this Act which is also an offence 

under any of the following Acts, namely:— 

(i) the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); 
(ii) the Chemical Weapons Convention Act, 2000 (34 of 2000); 
(iii) the Arms Act, 1959 (54 of 1959); 
(iv) the Wild Life (Protection) Act, 1972 (53 of 1972); 

 (c) a person involved in smuggling of goods falling under any of the following, namely:— 

(i)  goods  specified  in  the  list  of  Special  Chemicals,  Organisms,  Materials,  Equipment  and 
Technology in Appendix 3 to Schedule 2 (Export Policy) of ITC (HS) Classification of Export and 
Import Items of the Foreign Trade Policy, as amended from time to time, issued under section 5 of 
the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992); 

(ii)  goods  which  are  specified  as  prohibited  items  for  import  and  export  in  the  ITC  (HS) 
Classification of Export and Import Items of the Foreign Trade Policy, as amended from time to 
time, issued under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 
1992); 

(iii) any other goods or documents, which are likely to affect friendly relations with a foreign 

State or are derogatory to national honour; 
(d) a person who has been allowed to compound once in respect of any offence under this Chapter 

for goods of value exceeding rupees one crore; 

(e) a person who has been convicted under this Act on or after the 30th day of December, 2005.] 

1. Subs. by Act 29 of 2006, s. 32, for “section 135” (w.e.f. 13-7-2006). 
2. Ins. by Act 6 of 2022, s. 96 (w.e.f. 30-3-2022). 
3. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
4. Subs. by Act 22 of 1995, s. 50, for “Assistant Collector of Customs” (w.e.f. 26.5.1995). Again Subs. by Act 27 of 1999, s. 100, 

for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999).  

5. Ins. by Act 23 of 2004, s. 71 (w.e.f. 10-9-2004). 
6. Subs. by Act 25 of 2014, s. 78, for “Chief Commissioner of Customs” (w.e.f. 6-8-2014). 
7. Subs. by Act 33 of 2009, s. 89, for “such compounding amount” (w.e.f. 19-8-2009). 
8. Ins. by s. 89, ibid. (w.e.f. 19-8-2009). 

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138.  Offences to be tried summarily.—Notwithstanding anything contained in the Code of Criminal 
Procedure, 1898 (5 of 1898), an offence under this Chapter other than an offence punishable 1[under clause 
(i) of sub-section (1) of section 135 or under sub-section (2) of that section] may be tried summarily by a 
Magistrate. 

2[138A. Presumption of culpable mental state.—(1) In any prosecution for an offence under this Act 
which requires a culpable mental state on the part of the accused, the court shall presume the existence of 
such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state 
with respect to the act charged as an offence in that prosecution. 

Explanation.—In this section, “culpable mental state” includes intention, motive, knowledge of a fact 

and belief in, or reason to believe, a fact. 

(2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist 
beyond  reasonable  doubt  and  not  merely  when  its  existence  is  established  by  a  preponderance  of 
probability. 

138B. Relevancy of statements under certain circumstances.—(1) A statement made and signed by 
a person before any gazetted officer of customs during the course of any inquiry or proceeding under this 
Act shall be relevant, for the purpose of proving, in any prosecution for an offence under this Act, the truth 
of the facts which it contains,— 

(a) when the person who made the statement is dead or cannot be found, or is incapable of giving 
evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without 
an  amount  of  delay  or  expense  which,  under  the  circumstances  of  the  case,  the  court  considers 
unreasonable; or 

(b) when the person who made the statement is examined as a witness in the case before the court 
and the court is of opinion that, having regard to the circumstances of the case, the statement should be 
admitted in evidence in the interests of justice. 

(2) The provisions of sub-section (1) shall, so far as may be, apply in relation to any proceeding under 

this Act, other than a proceeding before a court, as they apply in relation to a proceeding before a court.] 

3[138C.  Admissibility of micro films, facsimile copies of documents and computer print outs as 
documents and as evidence.—(1) Notwithstanding anything contained in any other law for the time being 
in force,— 

(a) a micro film of a document or the reproduction of the image or images embodied in such micro 

film (whether enlarged or not); or 

(b) a facsimile copy of a document; or 

(c) a statement contained in a document and included in a printed material produced by a computer 
in  
(hereinafter 
sub-section (2) and the other provisions contained in this section are satisfied in relation to the statement 
and the computer in question, 

to  as  a  “computer print  out”), 

the  conditions  mentioned 

referred 

if 

shall be deemed to be also a document for the purposes of this Act and the rules made thereunder and shall 
be  admissible  in  any  proceedings thereunder,  without  further  proof  or  production  of  the  original,  as 
evidence of any contents of the original or of any fact stated therein of which direct evidence would be 
admissible. 

(2)  The  conditions  referred  to  in  sub-section  (1)  in  respect  of  a  computer  printout  shall  be  the 

following, namely:— 

1. Subs. by Act 36 of 1973, s. 8, for “under clause (i) of section 135” (w.e.f. 1-9-1973). 
2. Ins. by s. 9, ibid. (w.e.f. 1-9-1973). 
3. Ins. by Act 29 of 1988, s. 6 (w.e.f. 1-7-1988) vide Notification No. 18/88-C.E. (N.T.), dated 29-6-1988. 

110 

 
                                                           
(a)  the computer printout containing the statement was produced by the computer during the period 
over which the computer was used regularly to store or process information for the purposes of any 
activities regularly carried on over that period by the person having lawful control over the use of the 
computer; 

(b) during the said period, there was regularly supplied to the computer in the ordinary course of 
the said activities, information of the kind contained in the statement or of the kind from which the 
information so contained is derived; 

(c) throughout the material part of the said period, the computer was operating properly or, if not, 
then any respect in which it was not operating properly or was out of operation during that part of that 
period was not such as to affect the production of the document or the accuracy of the contents; and 

(d) the information contained in the statement reproduces or is derived from information supplied 

to the computer in the ordinary course of the said activities. 

(3) Where over any period, the function of storing or processing information for the purposes of any 
activities regularly carried on over that period as mentioned in clause (a) of sub-section (2) was regularly 
performed by computers, whether— 

(a) by a combination of computers operating over that period; or 

(b) by different computers operating in succession over that period; or 

(c) by different combinations of computers operating in succession over that period; or 

(d)  in any other manner involving the successive operation over that period, in whatever order, of 

one or more computers and one or more combinations of computers,    

all the computers used for that purpose during that period shall be treated for the purposes of this section as 
constituting a single computer; and references in this section to a computer shall be construed accordingly. 

(4)  In  any  proceedings  under  this  Act  and  the  rules  made thereunder where  it  is  desired  to  give  a 
statement in evidence by virtue of this section, a certificate doing any of the following things, that  is to 
say,— 

(a) identifying the document containing the statement and describing the manner in which it was 

produced; 

(b) giving such particulars of any device involved in the production of that document as may be 

appropriate for the purpose of showing that the document was produced by a computer; 

(c) dealing with any of the matters to which the conditions mentioned in sub-section (2) relate, 

and purporting to be signed by a person occupying a responsible official position in relation to the operation 
of  the  relevant  device  or  the  management  of  the  relevant  activities  (whichever  is  appropriate)  shall  be 
evidence of any matter stated in the certificate; and for the purposes of this sub-section it shall be sufficient 
for a matter to be stated to the best of the knowledge and belief of the person stating it. 

(5) For the purposes of this section,— 

(a) information shall be taken to be supplied to a computer if it is supplied thereto in any appropriate 
form and whether it is so supplied directly or (with or without human intervention) by means of any 
appropriate equipment; 

(b) whether in the course of activities carried on by any official, information is supplied with a view 
to its being stored or processed for the purposes of those activities by a computer operated otherwise 
than in the course of those activities, that information, if duly supplied to that computer, shall be taken 
to be supplied to it in the course of those activities; 

(c) a document shall be taken to have been produced by a computer whether it was produced by it 

directly or (with or without human intervention) by means of any appropriate equipment. 

111 

 
 
Explanation.—For the purposes of this section,— 

(a) “computer” means any device that receives, stores and processes data, applying stipulated 

processes to the information and supplying results of these processes; and 

(b) any reference to information being derived from other information shall be a reference to 

its being derived there from by calculation, comparison or any other process.] 

1[139. Presumption as to documents in certain cases.—Where any document— 

(i) is produced by any person or has been seized from the custody or control of any person, in either 

case, under this Act or under any other law, or 

(ii) has been received from any place outside India in the course of investigation of any offence 

alleged to have been committed by any person under this Act,  

and such document is tendered by the prosecution in evidence against him or against him and any other 
person who is tried jointly with him, the court shall— 

(a) presume, unless the contrary is proved, that the signature and every other part of such document 
which purports to be in the handwriting of any particular person or which the court may reasonably assume 
to have been signed by, or to be in the handwriting of, any particular person, is in that person’s handwriting, 
and in the case of a document executed or attested, that it was executed or attested by the person by whom 
it purports to have been so executed or attested; 

(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document 

is otherwise admissible in evidence; 

(c) in a case falling under clause (i) also presume, unless the contrary is proved, the truth of the 

contents of such document.] 

2[Explanation.—For the purposes of this section, “document” includes inventories, photographs and 

lists certified by a Magistrate under sub-section (1C) of section 110.] 

 140.  Offences  by  companies.—(1)  If  the  person  committing  an  offence  under  this  Chapter  is  a 
company, every person who, at the time the offence was committed was in charge of, and was responsible 
to, the company for the conduct of business of the company, as well as the company, shall be deemed to be 
guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  such 
punishment provided in this Chapter if he proves that the offence was committed without his knowledge or 
that he exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Chapter has 
been committed by a company and it is proved that the offence has been committed with the consent or 
connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a) “company” means a body corporate and includes a firm or other association of individuals; and 

(b) “director”, in relation to a firm, means a partner in the firm. 

1. Subs. by Act 36 of 1973, s. 10 for section 139 (w.e.f. 1-9-1973). 
2. Ins. by Act 80 of 1985, s. 11 (w.e.f. 27-12-1985). 

112 

 
 
                                                           
1[140A. Application of section 562 of the Code of Criminal Procedure, 1898, and of the Probation 
of Offenders Act, 1958.—(1) Nothing contained in section 562 of the Code of Criminal Procedure, 1898 
(5 of 1898), or in the Probation of Offenders Act, 1958 (20 of 1958), shall apply to a person convicted of 
an offence under this Act unless that person is under eighteen years of age. 

(2)  The  provisions  of  sub-section  (1)  shall  have  effect  notwithstanding  anything  contained  in  

sub-section (3) of section 135.] 

CHAPTER XVII 

MISCELLANEOUS 

141. Conveyances and goods in a customs area subject to control of officers of customs.—2[(1)] 
All conveyances and goods in a customs area shall, for the purpose of enforcing the provisions of this Act, 
be subject to the control of officers of customs. 

3[(2) The imported or export goods may be received, stored, delivered, despatched or otherwise handled 
in a customs area in such manner as may be prescribed and the responsibilities of persons engaged in the 
aforesaid activities shall be such as may be prescribed.] 

142. Recovery of sums due to Government.—(1) 4[Where any sum payable by any person] under this 
Act 5[including the amount required to be paid to the credit of the Central Government under section 28B] 
is not paid,— 

(a)  the proper officer may deduct or may require any other officer of customs to deduct the amount 
so payable from any money owing to such person which may be under the control of the proper officer 
or such other officer of customs; or 

(b)  the 6[Assistant Commissioner of Customs or Deputy Commissioner of Customs] may recover 
or may require any other officer of customs to recover the amount so payable by detaining and selling 
any goods belonging to such person which are under the control of the 6[Assistant Commissioner of 
Customs or Deputy Commissioner of Customs] or such other officer of customs; or 

7[(c) if the amount cannot be recovered from such person in the manner provided in clause (a) or 

clause (b)— 

(i)  the 6[Assistant  Commissioner  of  Customs  or  Deputy  Commissioner  of  Customs]  may 
prepare a certificate signed by him specifying the amount due from such person and send it to the 
Collector of the district in which such person owns any property or resides or carries on his business 
and the said Collector on receipt of such certificate shall proceed to recover from such person the 
amount specified there under as if it were an arrear of land revenue; or 

(ii) the  proper  officer  may,  on an  authorisation  by 8[Principal  Commissioner  of  Customs  or 
Commissioner  of  Customs]  and  in  accordance  with  the  rules  made  in  this  behalf, distrain any 
movable or immovable property belonging to or under the control of such person, and detain the 
same until the amount payable is paid; and in case, any part of the said amount payable or of the 
cost of the distress or keeping of the property, remains unpaid for a period of thirty days next after 
any such distress, may cause the said property to be sold and with the proceeds of such sale, may 
satisfy the amount payable and the costs including cost of sale remaining unpaid and shall render 
the surplus, if any, to such person;] 

1. Ins. by Act 36 of 1973, s. 11 (w.e.f. 1-9-1973). 
2. Section 141 numbered as sub-section (1) thereof by Act 18 of 2008, s. 74 (w.e.f. 10-5-2008). 
3. Ins. by Act 18 of 2008, s. 74 (w.e.f. 10-5-2008). 
4. Subs. by Act 22 of 1995, s. 66, for certain words (w.e.f. 26-5-1995). 
5. Ins. by Act 10 of 2000, s. 88 (w.e.f. 12-5-2000). 
6. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
7. Subs. by Act 22 of 1995, s. 66, for clause (c) (w.e.f. 26-5-1995). 
8. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 

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1[Provided that where the person (hereinafter referred to as predecessor), by whom any sum payable 
under this Act including the amount required to be paid to the credit of the Central Government under 
section 28B is not paid, transfers or otherwise disposes of his business or trade in whole or in part, or 
effects any change in the ownership thereof, in consequence of which he is succeeded in such business 
or trade by any other person, all goods, materials, preparations, plants, machineries, vessels, utensils, 
implements and articles in the custody or possession of the person so succeeding may also be attached 
and sold by the proper officer, after obtaining written approval from the 2[Principal Commissioner of 
Customs or Commissioner of Customs], for the purposes of recovering the amount so payable by such 
predecessor at the time of such transfer or otherwise disposal or change.] 

3[(d) (i) the proper officer may, by a notice in writing, require any other person from whom money 
is due to such person or may become due to such person or who holds or may subsequently hold money 
for or on account of such person, to pay to the credit of the Central Government either forthwith upon 
the money becoming due or being held, or at or within the time specified in the notice not being before 
the money becomes due or is held, so much of the money as is sufficient to pay the amount due from 
such person or the whole of the money when it is equal to or less than that amount; 

(ii) every person to whom the notice is issued under this section shall be bound to comply with 
such notice, and in particular, where any such notice is issued to a post office, banking company or an 
insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document 
for  the  purpose  of  any  entry,  endorsement  or  the  like  being  made  before  the  payment  is  made, 
notwithstanding any rule, practice or requirement to the contrary; 

(iii)  in  case  the  person  to  whom  a  notice  under  this  section  has  been  issued,  fails  to  make  the 
payment in pursuance thereof to the Central Government, he shall be deemed to be a defaulter in respect 
of the amount specified in the notice and all the consequences of this Chapter shall follow.] 

(2) Where the terms of any bond or other instrument executed under this Act or any rules or regulations 
made thereunder provide that any amount due under such instrument may be recovered in the manner laid 
down in sub-section (1), the amount may, without prejudice to any other mode of recovery, be recovered 
in accordance with the provisions of that sub-section. 

4[142A.  Liability under Act to be first charge.—Notwithstanding anything to the contrary contained 
in  any  Central  Act  or  State  Act,  any  amount  of  duty,  penalty,  interest  or  any  other  sum  payable  by  an 
assessee  or  any  other  person  under  this  Act,  shall,  save  as  otherwise  provided  in  section  529A  of  the 
Companies Act, 1956 (1 of 1956), the Recovery of Debts Due to Banks and the Financial Institutions Act, 
1993 (51 of 1993) and 5[the Securitisation and Reconstruction of Financial Assets and the Enforcement of 
Security Interest Act, 2002 (54 of 2002) and the Insolvency and Bankruptcy Code, 2016 (31 of 2016).]] 

143.  Power to allow import or export on execution of bonds in certain cases.—(1) Where this Act 
or any other law requires anything to be done before a person can import or export any goods or clear any 
goods  from  the  control  of officers of  customs  and  the 6[Assistant  Commissioner  of  Customs  or  Deputy 
Commissioner of Customs] is satisfied that having regard to the circumstances of the case, such thing cannot 
be  done  before  such  import,  export  or  clearance  without  detriment  to  that  person,  the 2[Assistant 
Commissioner of Customs or Deputy Commissioner of Customs] may, notwithstanding anything contained 
in this Act or such other law, grant leave for such import, export or clearance on the person executing a 
bond  in  such  amount,  with  such  surety  or  security  and  subject  to  such  conditions  as  the 2[Assistant 
Commissioner  of  Customs  or  Deputy  Commissioner  of  Customs]  approves,  for  the  doing  of  that  thing 
within such time after the import, export or clearance as may be specified in the bond. 

1. Ins. by Act 23 of 2004, s. 72 (w.e.f. 10-9-2004). 
2. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
3. Ins. by Act 17 of 2013, s. 79 (w.e.f. 10-5-2013). 
4. Ins. by Act 8 of 2011, s. 51 (w.e.f. 8-4-2011). 
5. Subs. by Act 31 of 2016, s. 248, for “and the Securitisation and Reconstruction of Financial Assets and  the Enforcement of 

Security Interest Act, 2002 (54 of 2002)” (w.e.f. 1-11-2016) vide Notification S.O. No. 3355(E), dated 1-11-2016. 

6. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 

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(2) If the thing is done within the time specified in the bond, the 1[Assistant Commissioner of Customs 
or Deputy Commissioner of Customs] shall cancel the bond as discharged in full and shall, on demand, 
deliver it, so cancelled, to the person who has executed or who is entitled to receive it; and in such a case 
that person shall not be liable to any penalty provided in this Act or, as the case may be, in such other law 
for the contravention of the provisions thereof relating to the doing of that thing. 

(3)  If  the  thing  is  not  done  within  the  time  specified  in  the  bond,  the 1[Assistant  Commissioner  of 
Customs or Deputy Commissioner of Customs] shall, without prejudice to any other action that may be 
taken under this Act or any other law for the time being in force, be entitled to proceed upon the bond in 
accordance with law. 

143A. [Duty deferment.] Omitted by the Finance Act, 2013 (17 of 2013), s. 80 (w.e.f. 10-5-2013). 

2[143AA.  Power  to  simplify  or  provide  different  procedure,  etc.,  to  facilitate  trade.—
Notwithstanding anything contained in any other provision of this Act, the Board may, for the purposes of 
facilitation of trade, take such measures or prescribe separate procedure or documentation for a class of 
importers or exporters or for categories of goods or on the basis of the modes of transport of goods, in order 
to,— 

(a) maintain transparency in the import and export documentation; or 

(b) expedite clearance or release of goods entered for import or export; or 

(c) reduce the transaction cost of clearance of importing or exporting goods; or 

(d) maintain balance between customs control and facilitation of legitimate trade.] 

144.  Power to take samples.—(1) The proper officer may, on the entry or clearance of any goods or 
at any time while such goods are being passed through the customs area, take samples of such goods in the 
presence of the owner thereof, for examination or testing, or for ascertaining the value thereof, or for any 
other purposes of this Act. 

(2) After the purpose for which a sample was taken is carried out, such sample shall, if practicable, be 
restored to the owner, but if the owner fails to take delivery of the sample within three months of the date 
on which the sample was taken, it may be disposed of in such manner as the 3[Principal Commissioner of 
Customs or Commissioner of Customs] may direct. 

(3) No duty shall be chargeable on any sample of goods taken under this section which is consumed or 

destroyed during the course of any test or examination thereof, 4***. 

145.  Owner,  etc.,  to  perform  operations  incidental  to  compliance  with  customs  law.—All 
operations necessary for making any goods available for examination by the proper officer or for facilitating 
such examination shall be performed by, or at the expense of, the owner, importer or exporter of the goods, 
as the case may be. 

5[146.  Licence  for  customs  brokers.—(1)  No  person  shall  carry  on  business  as  a  customs  broker 
relating to the entry or departure of a conveyance or the import or export of goods at any customs station 
unless such person holds a licence granted in this behalf in accordance with the regulations. 

(2) The Board may make regulations for the purpose of carrying out the provisions of this section and, 

in particular, such regulations may provide for— 

(a) the authority by which a licence may be granted under this section and the period of validity of 

such licence; 

1. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
2. Ins. by Act 13 of 2018, s. 97 (w.e.f. 28-3-2018). 
3. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
4. The words “, if such duty amounts to five rupees or more” omitted by Act 17 of 2013, s. 81 (w.e.f. 10-5-2013). 
5. Subs. by Act 17 of 2013, s. 82, for section 146 (w.e.f. 10-5-2013). 

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(b) the form of the licence and the fees payable therefor; 

(c) the qualifications of persons who may apply for a licence and the qualifications of persons to 

be employed by a licensee to assist him in his work as a customs broker; 

(d) the manner of conducting the examination; 

(e) the restrictions and conditions (including the furnishing of security by the licensee) subject to 

which a licence may be granted; 

(f) the circumstances in which a licence may be suspended or revoked; and 

(g) the appeals, if any, against an order of suspension or revocation of a licence, and the period 

within which such appeal may be filed.] 

1[146A. Appearance by authorised representative.—(1) Any person who is entitled or required to 
appear before an officer of customs or the Appellate Tribunal in connection with any proceedings under 
this Act, otherwise than when required under section 108 to attend personally for examination on oath or 
affirmation, may, subject to the other provisions of this section, appear by an authorised representative. 

(2)  For  the  purposes  of  this  section,  “authorised representative”  means  a  person authorised by  the 

person referred to in sub-section (1) to appear on his behalf, being— 

(a) his relative or regular employee; or 

(b) a 2[custom broker] licensed under section 146; or 

(c) any legal practitioner who is entitled to practise in any civil court in India; or 

(d)  any person who has acquired such qualifications as the Central Government may specify by 

rules made in this behalf. 

 (3) Notwithstanding anything contained in this section, no person who was a member of the Indian 
Customs and Central Excise Service-Group A and has retired or resigned from such Service after having 
served  for  not  less  than  three  years  in  any  capacity  in  that  Service  shall  be  entitled  to  appear  as 
an authorised representative in any proceedings before an officer of customs for a period of two years from 
the date of his retirement or resignation, as the case may be. 

(4)   No person,— 

(a) who has been dismissed or removed from Government service; or 

3[(b) who is convicted of an offence connected with any proceeding under this Act, the Central 
Excise and Salt Act, 1944 (1 of 1944), or the Gold (Control) Act, 1968 (45 of 1968) or the Finance Act, 
1994 (32 of 1994); or] 

(c) who has become an insolvent, 

shall be qualified to represent any person under sub-section (1), for all times in the case of a person referred 
to  in  clause  (a),  and  for  such  time  as  the 4[Principal  Commissioner  of  Customs  or  Commissioner  of 
Customs] or the competent authority under the 5[Central Excise and Salt Act, 1944 (1 of 1944), or the Gold 
(Control) Act, 1968 (45 of 1968) or the Finance Act, 1994 (32 of 1994)], as the case may be, may, by order, 
determine in the case of a person referred to in clause (b), and for the period during which the insolvency 
continues in the case of a person referred to in clause (c). 

1. Ins. by Act 44 of 1980, s. 50 and The Fifth Schedule (w.e.f. 11-10-1982). 
2. Subs. by Act 17 of 2013, s. 83, for “customs house agent” (w.e.f. 10-5-2013). 
3. Subs. by s. 83, ibid., for clause (b) (w.e.f. 10-5-2013). 
4. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
5. Subs. by Act 17 of 2013, s. 83, for “Central Excises and Salt Act, 1944 (1 of 1944) or the Gold (Control) Act, 1968 (45 of 1968)” 

(w.e.f. 10-5-2013). 

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(5)   If any person,— 

(a) who is a legal practitioner, is found guilty of misconduct in his professional capacity by any 
authority entitled to institute proceedings against him, an order passed by that authority shall have effect 
in relation to his right to appear before an officer of customs or the Appellate Tribunal as it has  in 
relation to his right to practice as a legal practitioner; 

(b) who is not a legal practitioner, is found guilty of misconduct in connection with any proceedings 
under this Act by such authority as may be specified by rules made in this behalf, that authority may 
any  person  under  
direct 
sub-section (1). 

thenceforth  be  disqualified 

represent 

that  he 

shall 

to 

(6) Any order or direction under clause (b) of sub-section (4) or clause (b) of sub-section (5) shall be 

subject to the following conditions, namely:— 

(a) no such order or direction shall be made in respect of any person unless he has been given a 

reasonable opportunity of being heard; 

(b) any person against whom any such order or direction is made may, within one month of the 

making of the order or direction, appeal to the Board to have the order or direction cancelled; and 

(c) no such order or direction shall take effect until the expiration of one month from the making 

thereof, or, where an appeal has been preferred, until the disposal of the appeal.] 

147.  Liability of principal and agent.—(1) Where this Act requires anything to be done by the owner, 

importer or exporter of any goods, it may be done on his behalf by his agent. 

(2) Any such thing done by an agent of the owner, importer or exporter of any goods shall, unless the 
contrary is proved, be deemed to have been done with the knowledge and consent of such owner, importer 
or exporter, so that in any proceedings under this Act, the owner, importer or exporter of the goods shall 
also be liable as if the thing had been done by himself. 

(3) When any person is expressly or impliedly authorised by the owner, importer or exporter of any 
goods to be his agent in respect of such goods for all or any of the purposes of this Act, such person shall, 
without prejudice to the liability of the owner, importer or exporter, be deemed to be the owner, importer 
or exporter of such goods for such purposes 1[including liability therefor under this Act]: 

Provided that where any duty is not levied or is short-levied or erroneously refunded on account of any 
reason other than any wilful act, negligence or default of the agent, such duty shall not be recovered from 
the  agent  unless  in  the  opinion  of 2[Assistant  Commissioner  of  Customs  or  Deputy  Commissioner  of 
Customs] the same cannot be recovered from the owner, importer or exporter. 

148.  Liability of agent appointed by the person in charge of a conveyance.—(1) Where this Act 
requires anything to be done by the person in charge of a conveyance, it may be done on his behalf by his 
agent. 

(2) An agent appointed by the person in charge of a conveyance and any person who represents himself 
to any officer of customs as an agent of any such person in charge, and is accepted as such by that officer, 
shall  be  liable  for  the fulfilment in  respect of the  matter in  question  of  all  obligations imposed  on such 
person  in  charge  by  or  under  this  Act  or  any  law  for  the  time  being  in  force,  and  to  penalties  and 
confiscations which may be incurred in respect of that matter. 

149.  Amendment  of  documents.—Save  as  otherwise  provided  in  sections  30  and  41,  the  proper 
officer may, in his discretion, authorise any document, after it has been presented in the custom house to 
be amended  3[in such form and manner, within such time, subject to such restrictions and conditions, as 
may be prescribed]: 

1. Ins. by Act 17 of 2013, s. 84 (w.e.f. 10-5-2013). 
2. Subs. by Act 27 of 1999, s. 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
3. Ins. by Act 23 of 2019, s. 80 (w.e.f. 1-8-2019). 

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Provided that no amendment of a bill of entry or a shipping bill or bill of export shall be so authorised to 
be amended after the imported goods have been cleared for home consumption or deposited in a warehouse, 
or  the  export  goods  have  been  exported,  except  on  the  basis  of  documentary  evidence  which  was  in 
existence at the time the goods were cleared, deposited or exported, as the case may be. 

150. Procedure for sale of goods and application of sale proceeds.—(1) Where any goods not being 
confiscated  goods  are  to  be  sold under  any  provisions  of  this  Act, they  shall,  after  notice to  the  owner 
thereof, be sold by public auction or by tender or with the consent of the owner in any other manner. 

(2) The proceeds of any such sale shall be applied— 

(a) firstly to the payment of the expenses of the sale, 
(b)  next to the payment of the freight and other charges, if any, payable in respect of the goods 
sold, to the carrier, if notice of such charges has been given to the person having custody of the goods, 

(c)  next to the payment of the duty, if any, on the goods sold, 
(d)  next to the payment of the charges in respect of the goods sold due to the person having the 

custody of the goods, 

(e)  next to the payment of any amount due from the owner of the goods to the Central Government 

under the provisions of this Act or any other law relating to customs, 

and the balance, if any, shall be paid to the owner of the goods. 

1[Provided that where it is not possible to pay the balance of sale proceeds, if any, to the owner of the 
goods  within  a  period  of  six  months  from  the  date  of  sale  of  such  goods  or  such  further  period  as 
the 2[Principal Commissioner of Customs or Commissioner of Customs] may allow, such balance of sale 
proceeds shall be paid to the Central Government.] 

151. Certain  officers  required  to  assist  officers  of  customs.—The  following  officers  are  hereby 

empowered and required to assist officers of customs in the execution of this Act, namely:— 

(a) officers of the Central Excise Department; 
(b) officers of the Navy; 
(c) officers of Police; 
(d) officers of the Central or State Governments employed at any port or airport; 
(e)  such other officers of the Central or State Governments or a local authority as are specified by 

the Central Government in this behalf by notification in the Official Gazette. 
3[151A. Instructions to officers of customs.—The Board may, if it considers it necessary or expedient 
so to do for the purpose of uniformity in the  classification of goods or with respect to the levy of duty 
thereon, 4[or for the implementation of any other provisions of this Act or of any other law for the time 
being in force, insofar as they relate to any prohibition, restriction or procedure for import or export of 
goods] issue such orders, instructions and directions to officers of customs as it may deem fit and such 
officers of customs and all other persons employed in the execution of this Act shall observe and follow 
such orders, instructions and directions of the Board: 

Provided that no such orders, instructions or directions shall be issued— 

(a) so as to require any such officer of customs to make a particular assessment or to dispose of a 

particular case in a particular manner; or 

(b)  so  as  to  interfere  with  the  discretion  of  the 5[Commissioner  of  Customs]  (Appeals)  in  the 

exercise of his appellate functions.] 

6[151B.  Reciprocal  arrangement  for  exchange  of  information  facilitating  trade.—(1)  The  Central 
Government  may  enter  into  an  agreement  or  any  other  arrangement  with  the  Government  of  any  country 
outside  India  or  with  such  competent  authorities  of  that  country,  as  it  deems  fit,  for  facilitation  of  trade, 
enforcing the provisions of this Act and exchange of information for trade facilitation, effective risk analysis, 

1. The proviso ins. by Act 8 of 2011, s. 52 (w.e.f. 8-4-2011). 
2. Subs. by Act 25 of 2014, s. 78, for “Commissioner of Customs” (w.e.f. 6-8-2014). 
3. Ins. by Act 80 of 1985, s. 12 (w.e.f. 27-12-1985). 
4. Ins. by Act 8 of 2011, s. 53 (w.e.f. 8-4-2011). 
5. Subs. by Act 22 of 1995, s. 50, for “Collector of Customs” (w.e.f. 26-5-1995). 
6. Ins. by Act 13 of 2018, s. 98 (w.e.f. 28-3-2018). 

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verification of compliance and prevention, combating and investigation of offences under the provisions of this 
Act or under the corresponding laws in force in that country. 

(2) The Central Government may, by notification, direct that the provisions of this section shall apply 
to the contracting State with which reciprocal agreement or arrangements have been made, subject to such 
conditions, exceptions or qualifications as may be specified in that notification. 

(3) Subject to the provisions of sub-section (2), the information received under sub-section (1) may also 

be used as evidence in investigations and proceedings under this Act. 

(4) Where the Central Government has entered into a multilateral agreement for exchange of information 
or documents for the purpose of verification of compliance in identified cases, the Board shall specify the 
procedure for such exchange, the conditions subject to which such exchange shall be made and designation of 
the person through whom such information shall be exchanged. 

(5)  Notwithstanding  anything  contained  in  sub-section  (1)  or  sub-section  (2)  or  sub-section  (3), 
anything done or any action taken or purported to have been done or taken, in pursuance to any agreement 
entered into  or any  other  arrangement  made  by  the  Central  Government  prior to  the  date  on  which  the 
Finance Bill, 2018 receives the assent of the President, shall be deemed to have been done or taken under 
the provisions of this section. 

Explanation.—For the purposes of this section, the expressions,— 

(i)  “contracting  State”  means  any  country  outside  India  in  respect  of  which  agreement  or 
arrangements have been made by the Central Government with the Government or authority of such 
country through an agreement or otherwise; 

(ii) “corresponding law” means any law in force in the contracting State corresponding to any of 
the provisions of this Act or dealing with offences in that country corresponding to any of the offences 
under this Act.] 

152.  Delegation of powers.—The Central Government may, by notification in the Official Gazette, 

direct that subject to such conditions, if any, as may be specified in the notification— 

(a) any power exercisable by the Board under this Act shall be exercisable also by 1[a 2[Principal 
Chief Commissioner of Customs or Chief Commissioner of Customs] or a  3[Principal Commissioner 
of Customs or Commissioner of Customs]] empowered in this behalf by the Central Government; 

(b)  any  power  exercisable  by  a 3[Principal  Commissioner  of  Customs  or  Commissioner  of 
Customs]  under  this  Act  may  be  exercisable  also  by  a 4[Joint  Commissioner  of  Customs]  or 
an 5[Assistant  Commissioner  of  Customs  or  Deputy  Commissioner  of  Customs]  empowered  in  this 
behalf by the Central Government; 

(c)  any  power  exercisable  by  a 4[Joint  Commissioner  of  Customs]  under  this  Act  may  be 
exercisable also by an 5[Assistant Commissioner of Customs or Deputy Commissioner of Customs] 
empowered in this behalf by the Central Government; 

(d) any power exercisable by an 5[Assistant Commissioner of Customs or Deputy Commissioner 
of Customs] under this Act may be exercisable also by a Gazette Officer of Customs empowered in this 
behalf by the Board. 

6[153. Modes for service of notice order, etc.—(1) An order, decision, summons, notice or any 
other communication under this Act or the rules made thereunder may be served in any of the following 
modes, namely:— 

1. Subs by Act 29 of 1988, s. 7, for “a Collector of Customs” (w.e.f. 1-7-1988) vide Notification No. 18/88 (N.T.)-C.E., dated  

29-6-1988. 

2. Subs. by Act 25 of 2014, s. 78, for “Chief Commissioner of Customs” (w.e.f. 6-8-2014). 
3. Subs. by s. 78, ibid., for “Commissioner of Customs” (w.e.f. 6-8-2014). 
4. Subs. by Act 27 of 1999, s. 100, for “Deputy Commissioner of Customs” (w.e.f. 11-5-1999). 
5. Subs. by s. 100, ibid., for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). 
6. Subs. by Act 13 of 2018, s. 99, for section 153 (w.e.f. 28-3-2018).  

119 

 
                                                           
(a) by giving or tendering it directly to the addressee or importer or exporter or his customs 
broker or his authorised representative including employee, advocate or any other person or to any 
adult member of his family residing with him; 

(b) by a registered post or speed post or courier with acknowledgement due, delivered to the 
person for whom it is issued or to his authorised representative, if any, at his last known place of 
business or residence; 

(c) by sending it to the e-mail address as provided by the person to whom it is issued, or to the e-

mail address available in any official correspondence of such person; 

(d) by publishing it in a newspaper widely circulated in the locality in which the person to whom 

it is issued is last known to have resided or carried on business; or 

(e) by affixing it in some conspicuous place at the last known place of business or residence of 
the person to whom it is issued and if such mode is not practicable for any reason, then, by affixing 
a copy thereof on the notice board of the office or uploading on the official website, if any. 

(2) Every order, decision, summons, notice or any communication shall be deemed to have been 
served on the date on which it is tendered or published or a copy thereof is affixed or uploaded in the 
manner provided in sub-section (1). 

(3) When such order, decision, summons, notice or any communication is sent by registered post or 
speed post, it shall be deemed to have been received by the addressee at the expiry of the period normally 
taken by such post in transit unless the contrary is proved.] 

154.  Correction of clerical errors, etc.—Clerical or arithmetical mistakes in any decision or order 
passed by the Central Government, the Board or any officer of customs under this Act, or errors arising 
therein from any accidental slip or omission may, at any time, be corrected by the Central Government, the 
Board or such officer of customs or the successor in office of such officer, as the case may be. 

1[154A. Rounding  off  of  duty,  etc.—The  amount  of  duty,  interest,  penalty,  fine  or  any  other  sum 
payable, and the amount of refund, drawback or any other sum due, under the provisions of this Act shall 
be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee 
consisting of paise then, if such part is fifty paise or more, it shall be increased to one rupee and if such part 
is less than fifty paise it shall be ignored.] 

2[154B. Publication  of  information  respecting  persons  in  certain  cases.—(1)   If  the  Central 
Government is of opinion that it is necessary or expedient in the public interest to publish the names of any 
person and any other particulars relating to any proceedings or prosecutions under this Act in respect of 
such person, it may cause to be published such names and particulars in such manners as it thinks fit. 

(2) No publication under this section shall be made in relation to any penalty imposed under this Act 
until the time for presenting an appeal to the Commissioner (Appeals) under section 128 or the Appellate 
Tribunal under section 129A, as the case may be, has expired without an appeal having been presented or 
the appeal, if presented, has been disposed of. 

Explanation.—In the case of a firm, company or other association of persons, the names of the partners 
of  the  firm,  directors,  managing  agents,  secretaries  and  treasures  or  managers  of  the  company,  or  the 
members of the association, as the case may be, may also be published if, in the opinion of the Central 
Government, circumstances of the case justify it.] 

155. Protection of action taken under the Act.—(1)   No suit, prosecution or other legal proceedings 
shall lie against the Central Government or any officer of the Government or a local authority for anything 
which is done, or intended to be done in good faith, in pursuance of this Act or the rules or regulations. 

1. Ins. by Act 12 of 1990, s. 62 (w.e.f. 31-5-1990). 
2. Ins. by Act 29 of 2006, s. 33 (w.e.f. 13-7-2006). 

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(2) No proceeding other than a suit shall be commenced against the Central Government or any officer 
of the Government or a local authority for anything purporting to be done in pursuance of this Act without 
giving  the  Central  Government  or  such  officer  a  month’s  previous  notice  in  writing  of  the  intended 
proceeding and of the cause thereof, or after the expiration of three months from the accrual of such cause. 

156. General  power  to  make  rules.—(1)  Without  prejudice to  any  power to make  rules contained 
elsewhere in this Act, the Central Government may make rules consistent with this Act generally to carry 
out the purposes of this Act. 

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide 

for all or any of the following matters, namely:— 

1[(a) the manner of determining the transaction value of the imported goods and export goods under 

sub-section (1) of section 14;] 

(b) the conditions subject to which accessories of, and spare parts and maintenance and repairing 

implements for, any article shall be chargeable at the same rate of duty as that article; 

2[(c) the due date and the manner of making deferred payment of duties, taxes, cesses or any other 

charges under sections 47 and 51.] 

(d)  the  detention  and  confiscation  of  goods  the  importation  of  which  is  prohibited  and  the 
conditions, if any, to be fulfilled before such detention and confiscation and the information, notices 
and security to be given and the evidence requisite for the purposes of such detention or confiscation 
and the mode of verification of such evidence; 

(e) the reimbursement by an informant to any public officer of all expenses and damages incurred 
in respect of any detention of any goods made on his information and of any proceedings consequent 
on such detention; 

(f) the information required in respect of any goods mentioned in a shipping bill or bill of export 

which are not exported or which are exported and are afterwards re-landed; 

3[(g) the publication, subject to such conditions as may be specified therein, of names and other 
particulars of persons who have been found guilty of contravention of any of the provisions of this Act 
or the rules.] 

4[(h)  the amount  to  be  paid 5[for  compounding  and  the  manner  of  compounding]  under  

sub-section (3) of section 137.] 

6[(i) the form, time limit, manner, circumstances, conditions, restrictions and such other matters for 

carrying out the provisions of Chapter VAA.] 

157.  General power to make regulations.—(1) Without prejudice to any power to make regulations 
contained elsewhere in this Act, the Board may make regulations consistent with this Act and the rules, 
generally to carry out the purposes of this Act. 

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

1.  Subs.  by  Act  22  of  2007,  s.  113,  for  clause  (a)  (w.e.f.  10-10-2007)  vide  Notification  No.  93/2007-Cus.  (N.T.),  dated  

10-9-2007. 

2. Ins. by Act 28 of 2016, s. 138 (w.e.f. 14-5-2016). 
3. Added by Act 36 of 1973, s. 12 (w.e.f. 1-9-1973). 
4. Ins. by Act 23 of 2004, s. 73 (w.e.f. 10-9-2004). 
5. Subs. by Act 33 of 2009, s. 90, for “for compounding” (w.e.f. 19-8-2009). 
6. Ins. by Act 12 of 2020, s. 114 (w.e.f. 27-3-2020). 

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(a) the form  1[and  manner to  deliver  or  present] of  a bill  of entry,  shipping  bill,  bill  of export, 
2[arrival manifest or import manifest], import report, 3[departure manifest or export manifest], export 
report, 4[bill of transhipment, declaration for transhipment] boat note and bill of coastal goods; 

5[(ai) the manner of export of goods, relinquishment of title to the goods and abandoning them to 
customs and destruction or rendering of goods commercially valueless in the presence of the proper 
officer under clause (d) of sub-section (1) of section 26A; 

(aii) the form and manner of making application for refund of duty under sub-section (2) of section 

26A;] 

6[(aa)  the 7[form  and  manner]  in  which  an  application  for  refund  shall  be  made  under  

section 27;] 

8[(ab)  the  form,  the  particulars,  the  manner  and  the  time  of  delivering  the  passenger  and  crew 
manifest for arrival and departure and passenger name record information and the penalty for delay in 
delivering such information under sections 30A and 41A;] 

(b) the conditions subject to which the transhipment of all or any goods under sub-section (3) of 
section 54, the transportation of all or any goods under section 56 and the removal of warehoused goods 
from one warehouse to another under section 67, may be allowed without payment of duty; 

(c) the conditions subject to which any manufacturing process or other operations may be carried 

on in a warehouse under section 65. 

9[(d) the time and manner of finalisation of provisional assessment; 

(e) the manner of conducting pre-notice consultation; 

(f) the circumstances under which, and the manner in which, supplementary notice may be issued; 

(g) the form and manner in which an application for advance ruling or appeal shall be made, and 

the procedure for the Authority, under Chapter VB; 

(h) the manner of clearance or removal of imported or export goods; 

(i) the documents to be furnished in relation to imported goods; 

(j)  the  conditions, restrictions  and  the  manner  of  making  deposits in  electronic  cash  ledger, the 

utilisation and refund therefrom and the manner of maintaining such ledger; 

10[(ja) the manner of maintaining electronic duty credit ledger, making payment from such ledger, 
transfer of duty credit from ledger of one person to the ledger of another and the conditions, restrictions 
and time limit relating thereto;] 

(k) the manner of conducting audit; 

11[(ka) the manner of authentication and the time limit for such authentication, the document or 
information to be furnished and the manner of submitting such document or information and the time 
limit for such submission, the form and the manner of furnishing alternative means of identification 

1. Ins. by Act 13 of 2018, s. 100 (w.e.f. 28-3-2018). 
2. Subs. by s. 56, ibid., for “import manifest” (w.e.f. 28-3-2018). 
3. Subs. by s. 56, ibid., for “export manifest” (w.e.f. 28-3-2018). 
4. Subs. by Act 27 of 1999, s. 115, for “bill of transhipment” (w.e.f. 11-9-1999). 
5. Ins. by Act 33 of 2009, s. 91 (w.e.f. 19-8-2009). 
6. Ins. by Act 40 of 1991, s. 14 (w.e.f. 20-9-1991). 
7. Subs. by Act 22 of 1995, s. 67, for “form” (w.e.f. 26-5-1995). 
8. Ins. by Act 7 of 2017, s. 108 (w.e.f. 31-3-2017). 
9. Subs. by Act 13 of 2018, s. 100, for clause (d) (w.e.f. 28-3-2018). 
10. Ins. by Act 12 of 2020, s. 115 (w.e.f. 27-3-2020). 
11. Ins. by Act 23 of 2019, s. 81 (w.e.f. 1-8-2019). 

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and the time limit for furnishing such identification, person or class of persons to be exempted and 
conditions subject to which suspension may be made, under Chapter XIIB;] 

(l) the goods for controlled delivery and the manner thereof; 

(m) the measures and separate procedure or documentation for a class of importers or exporters or 

categories of goods or on the basis of the modes of transport of goods.] 

1[(n) the form and manner, the time limit and the restrictions and conditions for amendment of any 

document under section 149.] 

158.  Provisions with respect to rules and regulations.—(1) All rules and regulations made under 

this Act shall be published in the Official Gazette. 

(2) Any rule or regulation which the Central Government or the Board is empowered to make under 

this Act may provide— 

(i)  for the levy of fees in respect of applications, amendment of documents, furnishing of duplicates 
of documents, issue of certificates, and supply of statistics, and for rendering of any services by officers 
of customs under this Act; 

2[(ii) that  any  person  who  contravenes  any  provision  of  a  rule  or  regulation  or  abets  such 
contravention or who fails to comply with any provision of a rule or regulation with which it was his 
duty to comply, shall be liable to a penalty which may extend to 3[two lakh rupees].]  

4[159.    Rules,  certain  notifications  and  orders  to  be  laid  before  Parliament.—Every  rule  or 
regulation made under this Act, every notification issued under sections 11, 11B, 11H, 11-I, 11K, 11N, 14, 
25, 28A, 43, 66, 69, 70, 74, 75, 76, 98, 98A, 101 and 123 and every order made under sub-section (2) of 
section 25, other than an order relating to goods of strategic, secret, individual or personal nature, shall be 
laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, 
for  a  total  period  of  thirty  days  which  may  be  comprised in  one  session,  or  in  two  or  more  successive 
sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the  successive 
sessions aforesaid, both Houses agree in making any modification in the rule or regulation or notification 
or order, or both Houses agree that the rule or regulation should not be made or notification or order should 
not be issued or made, the rule or regulation or notification or order shall thereafter have effect only in such 
modified form or be of no effect, as the case may be; so, however, that any such modification or annulment 
shall  be  without  prejudice  to  the  validity  of  anything  previously  done  under  that  rule  or  regulation  or 
notification or order.] 

5[159A.   Effect  of  amendments,  etc.,  of  rules,  regulations,  notifications  or  orders.—Where  any 
rule, regulation, notification or order made or issued under this Act or any notification or order issued under 
such rule or regulation, is amended, repealed, superseded or rescinded, then, unless a different intention 
appears, such amendment, repeal, supersession or rescinding shall not— 

(a)   revive  anything  not  in  force  or  existing  at  the  time  at  which  the  amendment,  repeal, 

supersession or rescinding takes effect; or 

(b)  affect the previous operation of any rule, regulation, notification or order so amended, repealed, 

superseded or rescinded or anything duly done or suffered thereunder; or 

(c)  affect any right, privilege, obligation or liability acquired, accrued or incurred under any rule, 

regulation, notification or order so amended, repealed, superseded or rescinded; or 

1. Ins. by Act 23 of 2019, s. 81 (w.e.f. 1-8-2019). 
2. Subs. by Act 18 of 2008, s. 75, for clause (ii) (w.e.f. 10-5-2008). 
3. Subs. by Act 23 of 2019, s. 82, for “fifty thousand rupees” (w.e.f. 1-8-2019). 
4. Subs. by Act 22 of 1995, s. 68, for section 159 (w.e.f. 26-5-1995). 
5. Ins. by Act 14 of 2001, s. 113 (w.e.f. 11-5-2001). 

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(d)  affect any penalty, forfeiture or punishment incurred in respect of any offence committed under 
or  in  violation  of  any  rule,  regulation,  notification  or  order  so  amended,  repealed,  superseded  or 
rescinded; or 

(e)  affect any investigation, legal proceeding or remedy in respect of any such right, privilege, 

obligation, liability, penalty, forfeiture or punishment as aforesaid, 

and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any 
such penalty, forfeiture or punishment may be imposed as if the rule, regulation, notification or order, as 
the case may be, had not been amended, repealed, superseded or rescinded.] 

160.  Repeal and savings.—(1) The enactments specified in the Schedule are hereby repealed to the 

extent mentioned in the fourth column thereof. 

(2) In the Indian Tariff Act, 1934 (32 of 1934)— 

(a)  for section 2, the following section shall be substituted, namely:— 

“2. Duties specified in the Schedules to be levied.—The rates at which duties of customs shall 
be levied under the Customs Act, 1962, are specified in the First and Second Schedules. 

(b)  sections 5 and 6 shall stand repealed. 

 (3) Notwithstanding the repeal of any enactment by this section,— 

(a) any notification, rule, regulation, order or notice issued or any appointment or declaration made 
or any licence, permission or exemption granted for any assessment made, confiscation adjudged or 
any duty levied or any penalty or fine imposed or any forfeiture, cancellation or discharge of any bond 
ordered or any other thing done or any other action taken under any repealed enactment shall, so far as 
it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the 
corresponding provision of this Act; 

(b) any document referring to any enactment hereby repealed shall be construed as referring to this 

Act or to the corresponding provision of this Act. 

(4) This Act shall apply to all goods which are subject to the control of customs at the commencement 

of this Act notwithstanding that the goods were imported before such commencement. 

(5) Where the period prescribed for any  application, appeal, revision or other proceeding under any 
repealed enactment had expired on or before the commencement of this Act, nothing in this Act shall be 
construed as enabling any such application, appeal or revision to be made or a proceeding to be instituted 
under this Act by reason only of the fact that a longer period therefore is prescribed or provision is made 
for extension of time in suitable cases by the appropriate authority. 

(6) The provisions of section 65 shall apply to goods warehoused before the commencement of this Act 

if the operations permissible under that section were carried on after such commencement. 

(7) Any duty or penalty payable under any repealed enactment may be recovered in a manner provided 
under this Act but without prejudice to any action already taken for the recovery of such duty or penalty 
under the repealed enactment. 

(8) The mention of particular matters in sub-sections (4), (5), (6) and (7) shall not be held to prejudice 
or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to 
the effect of repeals. 

(9) Nothing in this Act shall affect any law for the time being in force relating to the constitution and 

powers of any Port authority in a major port as defined in the Indian Ports Act, 1908 (15 of 1908). 

161.   Removal of difficulties.—If any difficulty arises in giving effect to the provisions of this Act, 
particularly in relation to the transition from the enactments repealed by this Act to the provisions of this 
Act,  the  Central  Government  may,  by  general  or  special  order,  do  anything  not  inconsistent  with  such 
provisions which appears to be necessary or expedient for the purpose of removing the difficulty. 

124 

 
 
Year 

(1) 

1878 

1896 

1924 

1934 

No. 

(2) 

8 

8 

19 

22 

THE SCHEDULE 

(See Section 160)  

Repeals 

Short title 

(3) 

The Sea Customs Act 

The Inland Bonded Warehouses Act 

The Land Customs Act 

The Aircraft Act 

___________ 

Extent of repeal 

(4) 

The whole 

The whole 

The whole 

Section 16 

125 

 
 
 
 
 
