CUSTOMS

CHAPTER I PRELIMINARY

SECTION 1. Short title, extent and commencement. – (1) This Act may be called the
Customs Act, 1962.
(2)It extends to the whole of India.
(3)It shall come into force on such date as the Central Government may, by notification in
the Official Gazette, appoint.
SECTION 2. Definitions. – In this Act, unless the context otherwise requires
(1)“adjudicating authority” means any authority competent to pass any order or decision
under this Act, but does not include the Board, 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 Service tax Appellate Tribunal
constituted under section 129;
(2)“assessment” includes provisional assessment, reassessment and any order of
assessment in which the duty assessed is nil;
(3)“baggage” includes unaccompanied baggage but does not include motor vehicles;
(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 Central Board of Excise 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;
(7A) “Commissioner (Appeals)” means a person appointed to be a Commissioner of
Customs (Appeals) under sub-section (1) of section 4;
(8)“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;
(11)“customs area” means the area of a customs station and includes any area in which
imported goods or export 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 [and includes a place appointed under clause (aa) of that section to be an
inland container depot;
(13)“customs station” means any customs port, customs airport 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 in the case of goods imported or to be exported by post, the entry
referred to in section 82 or 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 any owner or any person holding himself out to be
the exporter;
(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;
(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
(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)“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 any 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 waters extending into the sea up to the limit of
contiguous zone of India under section 5 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;
(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;
(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 [Commissioner of
Customs];
(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;
(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 sub-section (1) of section 14;
(42)“vehicle” means conveyance of any kind used on land and includes a railway vehicle;
(43)“warehouse” means a public warehouse appointed under section 57 or a private
warehouse licensed under section 58;
(44)“warehoused goods” means goods deposited in a warehouse;
(45)“warehousing station” means a place declared as a warehousing station under section
9.

CHAPTER II OFFICERS OF CUSTOMS

SECTION 3. Classes of officers of customs. — There shall be the following classes of

officers of customs, namely :-
(a)Chief Commissioners of Customs;
(b)Commissioners of Customs; 
( c)Commissioners of Customs (Appeals);
(cc)Joint Commissioners of Customs;
(d)Deputy Commissioners of Customs;
(e) Assistant Commissioners of Customs or Deputy Commissioner of Customs
(f)such other class of officers of customs as may be appointed for the purposes of this Act.
SECTION 4. Appointment of officers of customs.- (1)The Board may appoint such
persons as it thinks fit to be officers of customs.
(2)Without prejudice to the provisions of (2) sub-section (1), the Board may authorise a
Chief Commissioner of Customs or a Commissioner of Customs or a Joint or Assistant
Commissioner of Customs or Deputy Commissioner of Customs to appoint officers of
customs below the rank of Assistant Commissioner of Customs.
SECTION 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.
(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, a Commissioner (Appeals) shall not
exercise the powers and discharge the duties conferred or imposed on an officer of customs
other than those specified in Chapter XV and section 108.
SECTION 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 APPOINTMENT OF CUSTOMS PORTS, AIRPORTS, WAREHOUSING
STATIONS, ETC.

SECTION 7.Appointment of customs ports, airports, etc.-(1)  The 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;
(aa) the places which alone shall be inland container depots 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.
(2)Every notification issued under this section and in force immediately before the
commencement of the Finance Act, 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.
SECTION 8. Power to approve landing places and specify limits of  customs area. –
The 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. 
SECTION 9. Power to declare places to be warehousing stations.  – The Board may,
by notification in the Official Gazette, declare places to be warehousing stations at which
alone public warehouses may be appointed and private warehouses may be licensed.
SECTION 10. Appointment of boarding stations. – The 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

SECTION 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 gold or silver;
(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, trade marks and copyrights; 
(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;
( 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.

CHAPTER IVA DETECTION OF ILLEGALLY IMPORTED GOODS AND

PREVENTION OF THE DISPOSAL THEREOF

SECTION 11A. – 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.
SECTION 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.
SECTION 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.
(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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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

CHAPTER IVB PREVENTION OR DETECTION OF ILLEGAL EXPORT OF GOODS

SECTION 11H.Definitions.– In this Chapter, unless the context otherwise requires
(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.
SECTION 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.
SECTION 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 :
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.
SECTION 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.
SECTION 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 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.
SECTION 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.

CHAPTER IVC POWER TO EXEMPT FROM THE PROVISIONS OF CHAPTERS IVA

AND IVB

SECTION 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.

SECTION 12.Dutiable goods

(1) Except as otherwiseprovided 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 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)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.

SECTION 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.
SECTION 14. Valuation of goods for purposes of assessment

(1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the
time being in force whereunder a duty of customs is chargeable on any goods by reference
to their value, the value of such goods shall be deemed to be the price at which such or like
goods are ordinarily sold, or offered for sale, for delivery at the time and place of
importation or exportation, as the case may be, in the course of international trade, where –
(a) the seller and the buyer have no interest in the business of each other; or
(b) one of them has no interest in the business of the other,
and the price is the sole consideration for the sale or offer for sale
Provided 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 or
bill of export, as the case may be, is presented under section 50;
(1A)Subject to the provisions of sub-section (1), the price referred to in that sub-section in
respect of imported goods shall be determined in accordance with the rules made in this
behalf.
(2)Notwithstanding anything contained in sub-section (1) or sub-section (1A), 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.
(3)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);.

SECTION 15. Date for determination of rate of duty and tariff valuation of
imported

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

SECTION 16. Date for determination of rate of duty and tariff valuation of export
goods.
(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 makes an order permitting clearance and loading of the goods for exportation
under 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.

SECTION 17. Assessment of duty.

(1) After an importer has entered any imported goods under section 46 or an exporter has entered
any export goods under section 50 the imported goods or the export goods, as the case may be, or
such part thereof as may be necessary may, without undue delay, be examined and tested by the
proper officer.
(2)After such examination and testing, the duty, if any, leviable on such goods shall, save
as otherwise provided in section 85, be assessed.
(3)For the purpose of assessing duty under sub-section (2), the proper officer may require
the importer, exporter or any other person to produce any contract, broker’s note, policy of
insurance, catalogue or other document whereby the duty leviable on the imported goods or
export goods, as the case may be, can be ascertained, and to furnish any information
required for such ascertainment which it is in his power to produce or furnish, and
thereupon the importer, exporter or such other person shall produce such document and
furnish such information.
(4)Notwithstanding anything contained in this section, imported goods or export goods may,
prior to the examination or testing thereof, be permitted by the proper officer to be
assessed to duty on the basis of the statements made in the entry relating thereto and the
documents produced and the information furnished under sub-section (3); but if it is found
subsequently on examination or testing of the goods or otherwise that any statement in
such entry or document or any information so furnished is not true in respect of any matter
relevant to the assessment, the goods may, without prejudice to any other action which
may be taken under this Act, be re-assessed to duty.

(5) Where any assessment done under sub-section (2) is contrary to the claim of
the importer or exporter regarding valuation of goods, classification, exemption
for concessions of duty availed consequent to any notification therefor under this
Act, and in cases other than those where the importer or the exporter, as the case
may be, confirms his acceptance of the said assessment in writing, the proper
officer shall pass a speaking order within fifteen days from the date of
assessment of the bill of entry of the shipping bill, as the case may be.". (vide
Taxation Laws Amendment Act,2006)

SECTION 18. Provisional assessment of duty.

(1) Notwithstanding anything contained in this Act but without prejudice to the provisions contained
in section 46
(a)where the proper officer is satisfied that an importer or exporter is unable to produce any
document or furnish any information necessary for the assessment of duty on the imported goods
or the export goods, as the case may be; or
(b)where the proper officer deems it necessary to subject any imported goods or export goods to
any chemical or other test for the purpose of assessment of duty thereon; or
( c)where the importer or the exporter has produced all the necessary documents and furnished
full information for the assessment of duty but the proper officer deems it necessary to make
further enquiry for assessing the duty,
the proper officer may direct that the duty leviable on such goods may, pending the production of
such documents or furnishing of such information or completion of such test or enquiry, 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 finally
assessed and the duty provisionally assessed.
(2)When the duty leviable on such goods is assessed finally 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 finally assessed and if the amount so paid falls short of, or is in excess of
[the duty finally assessed], 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 finally assessed
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.

(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 under sub-
section (2), at the rate fixed by the Central Government under section 28AB 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, there shall be paid an interest on such
unrefunded amount at such rate fixed by the Central Government under section
27A till the date of refund of such amount.

(5) The amount of duty refundable under sub-section (2) and the interest under
sub-section (4), of 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 importers 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 this 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.”. (vide Taxation Laws
Amendment Act,2006)

SECTION 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 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.

SECTION 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.

SECTION 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.

SECTION 22.Abatement of duty on damaged or deteriorated goods.

(1) Where it is shown to the satisfaction of the 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
(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.

SECTION 23. Remission of duty on lost, destroyed or abandoned goods.

(1) Without prejudice to the provisions of section 13, where it is shown] to the satisfaction
of the Assistant Commissioner of Customs or Deputy Commissioner of Customs that any
imported goods have been lost (otherwise than as a result of pilferage) or destroyed, at any
time before clearance for home consumption, the Assistant Commissioner of Customs or
Deputy Commissioner of Customs shall remit the duty on such goods.
(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.

SECTION 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.

SECTION 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.
(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.
(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 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.
(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.
(4)Every notification issued under sub-section (1) or sub-section (2A) shall, -
(a)unless otherwise provided, come into force on the date of its issue by the Central
Government for publication in the Official Gazette;
(b)also be published and offered for sale on the date of its issue by the Directorate of
Publicity and Public Relations of the Board, New Delhi.
(5)Notwithstanding anything contained in sub-section (4), where a notification comes into
force on a date later than the date of its issue, the same shall be published and offered for
sale by the said Directorate of Publicity and Public Relations on a date on or before the date
on which the said notification comes into force.
(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.

SECTION 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.

SECTION 27. Claim for refund of duty.

(1) Any person claiming refund of any duty and interest, if any, paid on such duty -
(i) paid by him in pursuance of an order of assessment; or
(ii) borne by him,
may make an application for refund of such duty and interest, if any, paid on such duty to
the Assistant Commissioner of Customs or Deputy Commissioner of Customs -
(a) in the case of any import made by any individual for his personal use or by
Government or by any educational, research or charitable institution or hospital, before the
expiry of one year;
(b) in any other case, before the expiry of six months,
from the date of payment of duty and interest, if any, paid on such duty, in such form and
manner as may be specified in the regulations made in this behalf and the application 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 and
interest, if any, paid on such duty in relation to which such refund is claimed was collected
from, or paid by, him and the incidence of such duty and interest, if any, paid on such duty
had not been passed on by him to any other person :
Provided that where an application for refund has been made before the commencement of
the Central Excises and Customs Laws (Amendment) Act, 1991, such application shall be
deemed to have been made under this sub-section and the same shall be dealt with in
accordance with the provisions of sub-section (2) :
Provided further that the limitation of one year or six months, as the case may be, shall not
apply where any duty and interest, if any, paid on such duty has been paid under protest.
Provided also that 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 or six months,
as the case may be, shall be computed from the date of issue of such order.
Explanation I. - For the purposes of this sub-section, “the date of payment of duty and
interest, if any, paid on such duty”, in relation to a person, other than the importer, shall be
construed as “the date of purchase of goods” by such person.
Explanation II. - Where any duty is paid provisionally under section 18, the limitation of one
year or six months, as the case may be, shall be computed from the date of adjustment of
duty after the final assessment thereof.
(2)If, on receipt of any such application, the Assistant Commissioner of Customs or Deputy
Commissioner of Customs is satisfied that the whole or any part of the 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 duty and interest, if any, paid on such duty as determined by
the 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 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;
(f) the 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 :
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 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 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.

SECTION 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, not below five per
cent and not exceeding thirty per cent per annum as is for the time being fixed 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 :
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 or any court against an order of the 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 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.

SECTION 28. Notice for payment of duties, interest etc. 

(1)When any duty has not been levied or has been short-levied or erroneously refunded, or
when any interest payable has not been paid, part paid or erroneously refunded, the proper officer
may, -
(a) in the case of any import made by any individual for his personal use or by Government or by
any educational, research or charitable institution or hospital, within one year;
(b) in any other case, within six months,
from the relevant date, serve notice on the person chargeable with the duty or interest which has
not been levied or charged or which has been so short-levied or part 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 :
Provided that where any duty has not been levied or has been short-levied 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 employee of the importer or exporter, the provisions of this sub-section
shall have effect as if for the words “one year” and “six months”, the words “five years” were
substituted.
Explanation. - Where the service of the notice is stayed by an order of a court, the period of
such stay shall be excluded in computing the aforesaid period of one year or six months or
five years, as the case may be.
(1A) When any duty has not been levied or has been short-levied 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 willful mis-statement or
suppression of facts by the importer or the exporter or the agent or employee of
the importer or exporter, to whom a notice is served under proviso to sub-section
(1) by the proper officer, may pay duty in full or in part as may be accepted by him,
and the interest payable thereon under section 28AB and penalty equal to twenty-
five percent of the duty specified in the notice or the duty so accepted by such
person within thirty days of the receipt of the notice. (vide Taxation Laws
Amendment Act,2006)
(2)The proper officer, after considering the representation, if any, made by the person on whom
notice is served under sub-section (1), shall determine the amount of duty or interest 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.

Provided that if such person has paid the duty in full together with interest and
penalty under sub-section (1A), the proceedings in respect of such person and
other persons to whom notice are served 135, 135A and 140, be deemed to be
conclusive as to the matters stated therein:

Provided further that, if such person has paid duty in part, interest and penalty
under sub-section (1A), the proper officer shall determine the amount of duty or
interest not being in excess of the amount partly due from such person.”. (vide
Taxation Laws Amendment Act,2006)

(2A)Where any notice has been served on a person under sub-section (1), the proper officer, —
(i) in case any duty has not been levied or has been short-levied, or the interest has not been
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, where it is possible to do so, shall
determine the amount of such duty or the interest, within a period of one year; and
(ii) in any other case, where it is possible to do so, shall determine the amount of duty which has
not been levied or has been short-levied or erroneously refunded or the interest payable which has
not been paid, part paid or erroneously refunded, within a period of six months,
from the date of service of the notice on the person under sub-section (1).
(2B)Where any duty has not been levied or has been short-levied or erroneously refunded, or any
interest payable has not been paid, part paid or erroneously refunded, the person, chargeable with
the duty or the interest, may pay the amount of duty or interest before service of notice on him
under sub-section (1) in respect of the duty or the interest, as the case may be, and inform the
proper officer of such payment in writing, who, on receipt of such information, shall not serve any
notice under sub-section (1) in respect of the duty or the interest so paid :
Provided that the proper officer may determine the amount of short-payment of duty or interest,
if any, which in his opinion has not been paid by such person and, then, the proper officer shall
proceed to recover such amount in the manner specified in this section, and the period of “one year”
or “six months” as the case may be, referred to in sub-section (1) shall be counted from the date of
receipt of such information of payment.
Explanation 1. - Nothing contained in this sub-section shall apply in a case where the duty was not
levied or was not paid or the interest was not paid or was part paid or the duty or interest was
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 employee of the importer or exporter.
Explanation 2. - For the removal of doubts, it is hereby declared that the interest under section
28AB shall be payable on the amount paid by the person under this sub-section and also on the
amount of short-payment of duty, if any, as may be determined by the proper officer, but for this
sub-section.
(2C)The provisions of sub-section (2B) shall not apply to any case where the duty or the
interest had become payable or ought to have been paid before the date on which the Finance Bill,
2001 receives the assent of the President.
(3) For the purposes of sub-section (1), the expression “relevant date” means -
(a) in a case where duty is not levied, or interest is not charged, the date on which the proper
officer makes an order for the clearance of the goods;
(b) in a case where duty is provisionally assessed under section 18, the date of adjustment of duty
after the final assessment thereof;
(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.

SECTION 28A. Power not to recover duties not levied orshort-levied as a result of
general practice.

(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.
(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 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.

SECTION 28AA. Interest on delayed payment of duty.

 
(1) Subject to the provisions contained in section 28AB where a person, chargeable with the
duty determined under sub-section (2) of section 28, fails to pay such duty within three
months from the date of such determination, he shall pay, in addition to the duty, interest at
such rate not below ten 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 duty from the date immediately after the expiry of the said period of three months till
the date of payment of such duty :
Provided that where a person chargeable with duty determined under sub-section (2) of
section 28 before the date on which the Finance Bill, 1995 receives the assent of the
President, fails to pay such duty within three months from such date, then, such person
shall be liable to pay interest under this section from the date immediately after three
months from such date, till the date of payment of such duty.
Explanation 1. - Where the duty determined to be payable is reduced by the Commissioner
(Appeals), Appellate Tribunal or, as the case may be, the court, the date of such
determination shall be the date on which an amount of duty is first determined to be
payable.
Explanation 2. - Where the duty determined to be payable is increased or further increased
by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, the court, the
date of such determination shall be, -
(a) for the amount of duty first determined to be payable, the date on which the duty is so
determined;
(b) for the amount of increased duty, the date of order by which the increased amount of
duty is first determined to be payable;
(c) for the amount of further increase of duty, the date of order on which the duty is so
further increased.
(2) The provisions of sub-section (1) shall not apply to cases where the duty or the interest
becomes payable or ought to be paid on and after the date on which the Finance Bill, 2001
receives the assent of the President.

SECTION 28AB. Interest on delayed payment of duty in special cases.

(1) Where any duty has not been levied or paid or has been short-levied or short-paid or
erroneously refunded, the person who is liable to pay the duty as determined under sub-
section (2), or has paid the duty under sub-section (2B), of section 28, shall, in addition to
the duty, be liable to pay interest at such rate not below ten 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, from the first day of the month succeeding the month in
which the duty ought to have been paid under this Act, or from the date of such erroneous
refund, as the case may be, but for the provisions contained in sub-section (2), or sub-
section (2B), of section 28, till the date of payment of such duty :
Provided that in such cases where the duty becomes payable consequent to issue of an
order, instruction or direction by the Board under section 151A, and such amount of duty
payable is voluntarily paid in full, without reserving any right to appeal against such
payment at any subsequent stage, within forty-five days from the date of issue of such
order, instruction or direction, as the case may be, no interest shall be payable and in other
cases the interest shall be payable on the whole of the amount, including the amount
already paid.
(2)The provisions of sub-section (1) shall not apply to cases where the duty or interest had
become payable or ought to have been paid before the date on which the Finance Bill, 2001
receives the assent of the President.
Explanation 1. — Where the duty determined to be payable is reduced by the Commissioner
(Appeals), the Appellate Tribunal or, as the case may be, the court, the interest shall be
payable on such reduced amount of duty.
Explanation 2. — Where the duty determined to be payable is increased or further increased
by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court,
the interest shall be payable on such increased or further increased amount of duty.

SECTION 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 or any Court or in any other provision of this Act or the regulations made
thereunder, 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.
(2)Where any amount is required to be paid to the credit of the Central Government under
sub-section (1) 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 sub-section (1) or sub-
section (3) 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 sub-section (1).
(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.

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Provisional attachment to protect revenue in certain cases.

SECTION 28BA. (1) Where, during the pendency of any proceeding under section 28 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 Commissioner of Customs, by order in writing, attach
provisionally any property belonging to the person on whom notice is served under sub-section (1) of
section 28 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 Chief Commissioner of Customs may, for reasons to be recorded in writing, extend
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
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.”. (vide Taxation Laws Amendment Act,2006)

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

FOR PURPOSE OF REFUND
SECTION 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.
SECTION 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.

CHAPTER VB ADVANCE RULINGS

SECTION 28E. Definitions. 
In this Chapter, unless the context otherwise requires, -
(a) “activity” means import or export;
(b)“advance ruling” means the determination, by the Authority, of a question of law or fact
specified in the application regarding the liability to pay duty in relation to an activity which
is proposed to be undertaken, by the applicant;
(c) “applicant” means —
(i) (a) a non-resident setting up a joint venture in India in collaboration with a non-resident
or a resident; or
(b) a resident setting up a joint venture in India in collaboration with a non-resident; or
( c)a wholly owned subsidiary Indian company, of which the holding company is a foreign
company,
who or which, as the case may be, proposes to undertake any business activity in
India;
(ii) a joint venture in India; or
(iii) a resident falling within any such class or category of persons, as the Central
Government may, by notification in the Official Gazette, specify in this behalf,
and which or who, as the case may be, makes application for advance ruling under sub-
section (1) of section 28H;
( d)“application” means an application made to the Authority under sub-section (1) of
section 28H;
(e) “Authority” means the Authority for Advance Rulings (Central Excise, Customs & Service
Tax) constituted under section 28F;
(f) “Chairperson” means the Chairperson of the Authority;
(g) “Member” means a Member of the Authority and includes the Chairperson; and
(h) “non-resident”, “Indian company” and “foreign company” have the meanings
respectively assigned to them in clauses (30), (26) and (23A) of section 2 of the Income-tax
Act, 1961 (43 of 1961).
SECTION 28F. Authority for advance rulings.
(1)The Central Government shall, by notification in the Official Gazette, constitute an
Authority for giving advance rulings, to be called as “the Authority for Advance Rulings
(Central Excise, Customs & Service Tax)”.
(2) The Authority shall consist of the following Members appointed by the Central
Government, namely :-
(a) a Chairperson, who is a retired Judge of the Supreme Court;
(b) an officer of the Indian Customs and Central Excise Service who is qualified to be a
Member of the Board;
( c)an officer of the Indian Legal Service who is, or is qualified to be, an Additional
Secretary to the Government of India.
(3)The salaries and allowances payable to, and the terms and conditions of service of, the
Members shall be such as the Central Government may by rules determine.
(4)The Central Government shall provide the Authority with such officers and staff as may
be necessary for the efficient exercise of the powers of the Authority under this Act.
(5)The office of the Authority shall be located in Delhi.
SECTION 28G. Vacancies, etc., not to invalidate proceedings.
No pro-ceeding before, or pronouncement of advance ruling by, the Authority under this
Chapter shall be questioned or shall be invalid on the ground merely of the existence of any
vacancy or defect in the constitution of the Authority.
SECTION 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 as may be prescribed, stating the question on
which the advance ruling is sought.
(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.
(d) applicability of notifications issued in respect of duties under this Act, the Customs
Tariff Act, 1975 (51 of 1975) and any duty chargeable under any other law for the time
being in force in the same manner as duty of customs leviable under this Act.
(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)The application shall be made in quadruplicate and be accompanied by a fee of two
thousand five hundred rupees.
(4) An applicant may withdraw his application within thirty days from the date of the
application.
SECTION 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 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 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 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.
(3)A copy of every order made under sub-section (2) shall be sent to the applicant and to
the 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, provide an opportunity to the applicant of being heard, either in person or
through a 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 ninety days of the
receipt of application.
(7)A copy of the advance ruling pronounced by the Authority, duly signed by the Members
and certified in the prescribed manner shall be sent to the applicant and to the
Commissioner of Customs, as soon as may be, after such pronouncement.
SECTION 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 Commissioner of Customs, and the customs authorities  subordinate to him, in
respect of the applicant.
(2)The advance ruling referred to in sub-section (1) shall be binding as aforesaid unless
there is a change in law or facts on the basis of which the advance ruling has been
pronounced.
SECTION 28K. Advance ruling to be void in certain circumstances. 
(1) Where the Authority finds, on a representation made to it by the 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 (after excluding the period beginning with the date of such advance
ruling and ending with the date of order under this sub-section) to the applicant as if such
advance ruling had never been made.
(2)A copy of the order made under sub-section (1) shall be sent to the applicant and the
Commissioner of Customs.
SECTION 28L. Powers of Authority.
(1) The Authority 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).
(2)The Authority shall be deemed to be a civil court for the purposes of section 195, but
not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974),
and every proceeding before the Authority 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).
SECTION 28M. Procedure of Authority. - The Authority shall, subject to the provisions of this
Chapter, have power to regulate its own procedure in all matters arising out of the exercise
of its powers under this Act.

CHAPTER VI PROVISIONS RELATING TO CONVEYANCES CARRYING IMPORTED

OR EXPORTED GOODS

SECTION 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.
(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 :
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.
SECTION 30. Delivery of import manifest or import report
(1) The person-in-charge of -
(i) a vessel; or  
(ii) an aircraft; or  
(iii) a vehicle,  
carrying imported 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 an import manifest 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 the prescribed form and if the
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 cause such delay, shall be liable to a penalty not
exceeding fifty thousand rupees.
(2)The person delivering the 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 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.
SECTION 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 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.
SECTION 32. Imported goods not to be unloaded unless mentioned in import
manifest or import report.
No imported goods required to be mentioned under the regulations in an 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 41. Delivery of export manifest or export report.
(1) The person-in-charge of a conveyance carrying export goods shall, before departure of
the conveyance from a customs station, deliver to the proper officer in the case of a vessel
or aircraft, an export manifest, and in the case of a vehicle, an export report, in the
prescribed form :
(2)The person delivering the 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 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.
SECTION 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 
(ii)where the 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.
SECTION 43. Exemption of certain classes of conveyances from  certain provisions
(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

SECTION 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
SECTION 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 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)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 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.
SECTION 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 to the proper officer a bill of entry for home consumption
or warehousing in the prescribed form :
Provided 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.
(3)A bill of entry under sub-section (1) may be presented at any time after the delivery of
the import manifest or import report as the case may be :
Provided that the Commissioner of Customs may in any special circumstances permit a bill
of entry to be presented before the delivery of [such report] :
Provided further that a bill of entry may be presented even before the delivery of such
manifest if the vessel or the aircraft by which the goods have been shipped for importation
into India is expected to arrive within thirty days from the date of such presentation.
(4)The importer while presenting a bill of entry shall at the foot thereof 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, relating to the
imported goods.
(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.
SECTION 47. Clearance of goods for home consumption
(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.
(2)Where the importer fails to pay the import duty under sub-section (1) within five days
excluding holidays from the date on which the bill of entry is returned to him for payment of
duty, he shall pay interest at such rate, not below [ten 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 duty till the date of payment of the said duty :
Provided that where the bill of entry is returned for payment of duty before the
commencement of the Customs (Amendment) Act, 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.
Provided further 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.
SECTION 48. Procedure in case of goods not cleared, warehoused,  or transhipped
within 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 within 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 :
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).
SECTION 49. Storage of imported goods in warehouse pending  clearance.
Where 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, the goods may, pending clearance, be permitted to be stored in a
public warehouse, or in a private warehouse if facilities for deposit in a public warehouse are
not available; but such goods shall not be deemed to be warehoused goods for the purposes
of this Act, and accordingly the provisions of Chapter IX shall not apply to such goods.
Clearance of export goods
SECTION 50. Entry of goods for exportation. 
(1) The exporter of any goods shall make entry thereof by presenting 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 in the prescribed form.
(2) The exporter of any goods, while presenting a shipping bill or bill of export, shall at the
foot thereof make and subscribe to a declaration as to the truth of its contents.
SECTION 51.Clearance of goods for exportation. 
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.

CHAPTER VIII GOODS IN TRANSIT

SECTION 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.
SECTION 53.Transit of certain goods without payment of duty. –
Subject to the provisions of section 11, any goods imported in a conveyance and mentioned
in the import manifest or the import report, as the case may be, as for transit in the same
conveyance to any place outside India or any customs station may be allowed to be so
transited without payment of duty.
SECTION 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 the prescribed form.
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 the prescribed form.
(2)Subject to the provisions of section 11, where any goods imported into a customs station
are mentioned in the 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 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.
SECTION 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.
SECTION 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
SECTION 57. Appointing of public warehouses.
At any warehousing station, the Assistant Commissioner of Customs or Deputy
Commissioner of Customs may appoint public warehouses wherein dutiable goods may be
deposited . 
SECTION 58. Licensing of private warehouses. –
(1) At any warehousing station, the Assistant Commissioner of Customs or Deputy
Commissioner of Customs may license private warehouses wherein dutiable goods imported
by or on behalf of the licensee, or any other imported goods in respect of which facilities for
deposit in a public warehouse are not available, may be deposited . 
(2)The Assistant Commissioner of Customs or Deputy Commissioner of Customs may
cancel a licence granted under sub-section (1) -
(a)by giving one month’s notice in writing to the licensee; or
(b)if the licensee has contravened any provision of this Act or the rules or regulations or
committed breach of any of the conditions of the licence :
Provided that before any licence is cancelled under clause (b), the licensee shall be given a
reasonable opportunity of being heard.
(3)Pending an enquiry whether a licence granted under sub-section (1) should be cancelled
under clause (b) of sub-section (2), the Assistant Commissioner of Customs or Deputy
Commissioner of Customs may suspend the licence.
SECTION 59. Warehousing bond.-
(1) The importer of any goods  specified in sub-section (1) of section 61, which have been
entered for warehousing and assessed to duty under section 17 or section 18 shall execute
a bond binding himself in a sum equal to twice the amount of the duty assessed on such
goods—
(a) to observe all the provisions of this Act and the rules and  regulations in respect of
such goods;
(b)to pay on or before a date specified in a notice of demand,—
(i)all duties, and interest, if any, payable under sub-section (2) of section 61;
(ii)rent and charges claimable on account of such goods under this Act, together with
interest on the same from the date so specified [at such rate not below eighteen 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; and
( c)to discharge all penalties incurred for violation of the provisions of this Act and the
rules and 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 enter into 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)A bond executed under this section by an importer in respect of any goods shall
continue in force notwithstanding the transfer of the goods to any other person or the
removal of the goods to another warehouse :
Provided that where the whole of the goods or any part thereof are transferred to another
person, the proper officer may accept a fresh bond from the transferee in a sum equal to
twice the amount of duty assessed on the goods transferred and thereupon the bond
executed by the transferor shall be enforceable only for a sum mentioned therein less the
amount for which a fresh bond is accepted from the transferee.
SECTION 59A.omitted
SECTION 60. Permission for deposit of goods in a warehouse. –
When the provisions of section 59 have been complied with in respect of any  goods, the
proper officer may make an order permitting the deposit of the goods in a warehouse .
SECTION 61. Period for which goods may remain warehoused. —
(1) Any warehoused goods may be left 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 expiry of five years;
(aa)in the case of goods other than capital goods intended for use in any hundred per
cent. export-oriented undertaking, till the expiry of three years; and
(b) in the case of any other goods, till the expiry of one year,
after the date on which the proper officer has made an order under section 60 permitting
the deposit of the goods in a warehouse :
Provided that -
(i) in the case of any goods which are not likely to deteriorate, the period specified in
clause (a) or clause (aa) or clause (b) may, on sufficient cause being shown, be extended –
(A)in the case of such goods intended for use in any hundred per cent. export-oriented
undertaking, by the Commissioner of Customs, for such period as he may deem fit; and
(B)in any other case, by the Commissioner of Customs, for a  period not exceeding six
months and by the Chief Commissioner of Customs for such further period as he may deem
fit;
(ii) in the case of any goods referred to in clause (b), if they are likely to deteriorate, the
aforesaid period of one year may be reduced by the Commissioner of Customs to such
shorter period as he may deem fit :
Provided further that when the licence for any private warehouse is cancelled, the owner of
any goods warehoused therein shall, within seven days from the date on which notice of
such cancellation is given or within such extended period as the proper officer may allow,
remove the goods from such warehouse to another warehouse or clear them for home
consumption or exportation.
(2) Where any warehoused goods -
(i)specified in sub-clause (a) or sub-clause (aa) of sub-section (1), remain in a warehouse
beyond the period specified in that sub-section by reason of extension of the aforesaid
period or otherwise, interest at such rate as is specified in section 47 shall be payable, on
the amount of duty payable at the time of clearance of the goods in accordance with the
provisions of section 15 on the warehoused goods, for the period from the expiry of the said
warehousing period till the date of payment of duty on the warehoused goods;
(ii)specified in sub-clause (b) of sub-section (1), remain in a  warehouse beyond a period
of ninety days, interest shall be payable at such rate or rates not exceeding the rate
specified in section 47, as may be fixed by the Board, on the amount of duty payable at the
time of clearance of the goods in accordance with the provisions of section 15 on the
warehoused 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 the Board may, if it considers it necessary so to do in the public interest, by
order and under circumstances of an exceptional nature, to be specified in such order, waive
the whole or part of any interest payable under this section in respect of any warehoused
goods :
Provided further that the Board may, if it is satisfied that it is necessary so to do in the
public interest, by notification in the Official Gazette, specify the class of goods in respect of
which no interest shall be charged under this section.
Explanation. — For the purposes of this section, “hundred per cent export oriented
undertaking” has the same meaning as in Explanation 2 to sub-section (1) of section 3 of
the Central Excises and Salt Act, 1944 (1 of 1944).
SECTION 62. Control over warehoused goods. –
(1) All warehoused goods shall be subject to the control of the proper officer.
(2)No person shall enter a warehouse or remove any goods therefrom without the
permission of the proper officer.
(3)The proper officer may cause any warehouse to be locked with the lock of the Customs
Department and no person shall remove or break such lock.
(4)The proper officer shall have access to every part of a warehouse and power to examine
the goods therein.
SECTION 63. Payment of rent and warehouse charges. –
(1) The owner of any warehoused goods shall pay to the warehouse-keeper rent and
warehouse charges at the rates fixed under any law for the time being in force or where no
rates are so fixed, at such rates as may be fixed by the Commissioner of Customs.
(2)If any rent or warehouse charges are not paid within ten days from the date when they
became due, the warehouse-keeper may, after notice to the owner of the warehoused
goods and with the permission of the proper officer cause to be sold (any transfer of the
warehoused goods notwithstanding) such sufficient portion of the goods as the warehouse-
keeper may select.
SECTION 64. Owner’s right to deal with warehoused goods.–
With the sanction of the proper officer and on payment of the prescribed fees, the owner of
any goods may either before or after warehousing the same -
(a)inspect the goods ; 
(b)separate damaged or deteriorated goods from the rest ; 
( c)sort the goods or change their containers for the purpose of  preservation, sale, export
or disposal of the goods ;
(d) deal with the goods and their containers in such manner as may be necessary to
prevent loss or deterioration or damage to the goods;
(e) show the goods for sale; or 
(f)take samples of goods without entry for home consumption, and if the proper officer so
permits, without payment of duty on such samples.
SECTION 65.Manufacture and other operations in relation to goods  in a
warehouse.
(1) With the sanction of the Assistant Commissioner of Customs or Deputy Commissioner of
Customs and subject to such conditions and on payment of such fees 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.
SECTION 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.
SECTION 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, subject to such conditions as may be prescribed for
the due arrival of the warehoused goods at the warehouse to which removal is permitted.
SECTION 68.Clearance of warehoused goods for home consumption. 
The importer of any warehoused goods may clear them for home consumption, if -
(a) a bill of entry for home consumption in respect of such goods has been presented in
the prescribed form;
(b)the import duty leviable on such goods and all penalties, rent, interest and other charges
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.
Provided 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 rent, interest, other charges and penalties
that may be payable in respect of the goods and upon such relinquishment, he shall not be
liable to pay duty thereon.
”Provided further 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.”.(Vide Finance Act,2006)
SECTION 69. Clearance of warehoused goods for exportation.
(1) Any warehoused goods may be exported to a place outside India without payment of
import duty if -
(a)a shipping bill or a bill of export has been presented in respect of such goods in the
prescribed form;
(b)the export duty, penalties, rent, interest and other charges  payable in respect of such
goods have been paid; and
( c)an order for clearance of such goods for exportation has been  made by the proper
officer.
(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.
SECTION 70. Allowance in case of volatile goods.
(1) When any ware-housed 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 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.
SECTION 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 re-exportation, or for removal to another warehouse, or as otherwise
provided by this Act.
SECTION 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;
( c)where any warehoused goods have been taken under section 64 as samples without
payment of duty;
(d)where any goods in respect of which a bond has been executed  and which have not
been cleared for home consumption under section 59 or exportation 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 all penalties, rent,
interest and other charges 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 select.
SECTION 73. Cancellation and return of warehousing bond.
When the whole of the goods covered by any bond executed under section 59 have been
cleared for home consumption or exported 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.

CHAPTER X DRAWBACK
SECTION 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 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 section 82 and the proper officer makes an order
permitting clearance of the goods for exportation,
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 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.
(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.

Rate of drawback on re-export

SECTION 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 manufactured, processed or on which any operation has been carried out in
India, 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, or being goods entered for export by post under section 82 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 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).
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 [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 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 :
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 Foreign Exchange Management Act,
1999 (42 of 1999), such drawback shall 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.
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 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 –
(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;
(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) 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 [manufacturer or the person carrying on 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 [Assistant Commissioner of Customs or
Deputy Commissioner of Customs] to enable such authorised officer to inspect the
processes of [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.
(d) for the manner and the time within which the claim for payment of drawback may be
filed;
(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.
SECTION 75A. Interest on drawback.Where any drawback payable to a claimant
under 
(1) section 74 or section 75 is not paid within a period of 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 period of one month till the date of payment of such drawback :
(2)Where any drawback has been paid to the claimant erroneously, the claimant shall,
within a period of one months from the date of demand, pay in addition to the said amount
of drawback, interest at the rate fixed under section 28AA from the date after the expiry of
the said period of one months till the date of recovery of such drawback.
SECTION 76. Prohibition and regulation of drawback in certain  cases.
(1) Notwithstanding anything hereinbefore contained, no drawback shall be allowed (a)
omitted
(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 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.

CHAPTER XA SPECIAL PROVISIONS RELATING TO SPECIAL ECONOMIC ZONE

SECTION 76A.Notification of special economic zone.
The Central Government may, by notification in the Official Gazette, specify special
economic zones comprising specifically delineated areas where any goods admitted shall be
regarded, in so far as duties of customs are concerned, as being outside the customs
territory of India as provided in this Chapter.
SECTION 76B. Application of provisions
The provisions of this Chapter and other Chapters shall apply to goods admitted to a special
economic zone, but in the event of conflict between the provisions of this Chapter and other
Chapters, the provisions of this Chapter shall prevail.
SECTION 76C. Establishment and control.  
(1) The Central Government may make rules specifying the requirements relating to goods
or class of goods admissible to a special economic zone, the nature of operations to which
such goods or class of goods may be subjected to, the conditions to be fulfilled and the
procedures to be followed in this regard.
(2) The Board may specify, in the regulations made in this behalf, arrangements for
customs control in a special economic zone.
(3) The proper officer shall have the right to carry out checks, at any time, on the goods
kept or stored in a special economic zone.
SECTION 76D.Admission of goods.  
Subject to such conditions as may be specified in the rules made in this behalf, any goods
imported directly from outside India or procured from within India shall be authorised for
admission to a special economic zone.
SECTION 76E.Exemption from duties of customs.
Without prejudice to the provisions of sections 76F, 76G and 76H, any goods admitted to a
special economic zone shall be exempt from duties of customs.
SECTION 76F.Levy of duties of customs.
Subject to the conditions as may be specified in the rules made in this behalf, —
(a) any goods admitted to a special economic zone from the domestic tariff area shall be
chargeable to export duties at such rates as are leviable on such goods when exported;
(b) any goods removed from a special economic zone for home consumption shall be
chargeable to duties of customs including anti-dumping, countervailing and safeguard duties
under the Customs Tarrif Act, 1975 (51 of 1975), where applicable, as leviable on such
goods when imported; and
(c) the rate of duty and tariff valuation, if any, applicable to goods admitted to, or removed
from, a special economic zone shall be the rate and tariff valuation in force as on the date of
such admission or removal, as the case may be, and where such date is not ascertainable,
on the date of payment of the duty.
SECTION 76G. Authorised operations.
All goods admitted to a special economic zone shall undergo such operations including
processing or manufacturing as may be specified in the rules made in this behalf.
SECTION 76H.Goods utilised within a special economic zone.
(1) The Central Government may make rules in this behalf to enumerate the cases in which
goods to be utilised inside a special economic zone may be admitted free of duties of
customs and lay down the requirements which shall be fulfilled.
(2) Goods utilised contrary to the provisions of rules made under sub-section (1) shall be
chargeable to duties of customs in the same manner as provided under clause (b) of section
76F as if they have been removed for home consumption.
SECTION 76I.Drawback on goods admitted to a special economic zone.  
Any goods admitted to a special economic zone from the domestic tariff area for the
purposes authorised under this Chapter shall be eligible for drawback under section 75 as if
such goods are export goods for the purposes of that section.
SECTION 76J. Duration of stay.
Any goods admitted to a special economic zone shall not be allowed to remain within such
zone beyond such time as may be specified in the rules made in this behalf.
SECTION 76K.Security.
Any goods admitted free of duty to a special economic zone or goods under transhipment to
and from such zone without payment of duty shall be subject to execution of such bond and
such surety or security as may be specified in the rules made in this behalf.
SECTION 76L.Transfer of ownership.
Any goods admitted to, or produced or manufactured in, a special economic zone shall be
allowed for transfer of ownership subject to such conditions as may be specified in the rules
made in this behalf.
SECTION 76M.Removal of goods.
Any goods admitted to, or produced or manufactured in, a special economic zone may be
removed in accordance with such procedure as may be specified in the rules made in this
behalf.
SECTION 76N.Closure of a Special Economic Zone.
In the event of closure of a special economic zone by the Central Government, by
notification in the Official Gazette, the goods admitted to, or produced or manufactured in,
such zone shall be removed within such time and in such manner as may be specified in the
rules made in this behalf.

CHAPTER XI SPECIAL PROVISIONS REGARDING BAGGAGE, GOODS IMPORTED

OR EXPORTED BY POST, AND STORES

SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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 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.
SECTION 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
SECTION 82.Label or declaration accompanying goods to be treated as entry.
In the case of goods imported or exported by post, any label or declaration accompanying
the goods, which contains the description, quantity and value thereof, shall be deemed to
be an entry for import or export, as the case may be, for the purposes of this Act.
SECTION 83.Rate of duty and tariff valuation in respect of goods  imported or
exported by post.
(1) The rate of duty and tariff value, if any, applicable to any goods imported by post shall
be the rate and valuation in force on the date on which the postal authorities present to the
proper officer a list containing the particulars of such goods for the purpose of assessing the
duty thereon :
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 post shall
be the rate and valuation in force on the date on which the exporter delivers such goods to
the postal authorities for exportation.
SECTION 84. Regulations regarding goods imported or to be  exported by post.
The Board may make regulations providing for -
(a)the form and manner in which an entry may be made in respect of any specified class
of goods imported or to be exported by post, other than goods which are accompanied by a
label or declaration containing the description, quantity and value thereof;
( b)the examination, assessment to duty, and clearance of goods imported or to be
exported by post;
( c)the transit or transhipment of goods imported by post, from one customs station to
another or to a place outside India.
Stores
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
(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

SECTION 91.Chapter not to apply to baggage and stores.

The provisions of this Chapter shall not apply to baggage and stores.
SECTION 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.
SECTION 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.
SECTION 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).
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
CHAPTER XIII SEARCHES, SEIZURE AND ARREST
SECTION 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. 
SECTION 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 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.
(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.
SECTION 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 witnesses.
(5)No female shall be searched by any one excepting a female.
SECTION 103. Power to screen or X-ray bodies of suspected  persons for detecting
secreted goods.
(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 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 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 :
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).
SECTION 104. Power to arrest.

(1) If an officer of Customs empowered in this behalf by general or special order of the Commissioner of
Customs has reason to believe that any person in India or within the Indian customs waters 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. (vide Taxation Laws Amendment Act,2006)

(2) Every person arrested under sub-section (1) (2) 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)Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5 of 1898), an
offence under this Act shall not be cognizable.
SECTION 105. Power to search premises. 
(1) If the 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 Commissioner of Customs were
substituted.
SECTION 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.
SECTION 106A. Power to inspect. 
Any proper officer authorised in this behalf by the 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.
SECTION 107. Power to examine persons. 
Any officer of customs empowered in this behalf by general or special order of the 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.
SECTION 108.Power to summon persons to give evidence and produce documents.

(1) Any Gazetted officer of Customs duly empowered by the Central Government in
this behalf, 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. (vide Taxation Laws
Amendment Act,2006)

(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).
Important Ruling
Merely because a statement has been recorded under Section 108 of the
Customs Act does not mean that it has to ipso facto accepted as truthful
AIT-1986-02-CESTAT-SB
SECTION 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 :
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.
SECTION 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 :
Provided that where it is not practicable to seize any such goods, the proper officer may serve on
the owner of the goods an order that he shall not remove, part with, or otherwise deal with the
goods except with the previous permission of such officer.
(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.
(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 :
Provided that the aforesaid period of six months may, on sufficient cause being shown, be extended
by the Commissioner of Customs for a period not exceeding six months.
(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.

SECTION 110A. Provisional release of goods, documents and things seized pending
adjudication

Any goods, documents or things seized under 110, may, pending the order of the
adjudicating officer, be released to the owner on taking a bond from him in the
proper form with such security and conditions as the Commissioner of Customs may
require. (vide Taxation Laws Amendment Act,2006)

SECTION 111. Confiscation improperly imported goods, etc of.

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 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) 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 in
respect thereof, or in the case of goods under transhipment, with the declaration for transhipment
referred to in the proviso to sub-section (1) of section 54;
(n) any dutiable or prohibited goods transitted with or without transhipment or attempted to be
so transitted 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;
(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.
for improper importation of

SECTION 112.Penalty 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 [not exceeding the value of the goods or five thousand
rupees], whichever is the greater;
(ii) in the case of dutiable goods, other than prohibited goods, to a penalty not exceeding the duty
sought to be evaded on such goods or five thousand rupees, whichever is the greater;
(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 [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 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 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.

SECTION 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 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;
(e)any goods found concealed in a package which is brought within the limits of a customs area for
the purpose of exportation;
(f)any goods which are loaded or attempted to be loaded in contravention of the provisions of
section 33 or section 34;
(g)any 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 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;
(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;
(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;
(k)any goods cleared for exportation 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;
(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.
for attempt to export goods

SECTION 114. Penalty 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 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;
(ii) in the case of dutiable goods, other than prohibited goods, to a penalty not exceeding the duty
sought to be evaded or five thousand rupees, whichever is the greater;
(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.
SECTION 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 sub-section (2) of section 28 shall also
be liable to pay a penalty equal to the duty or interest so determined :
Provided that where such duty or interest, as the case may be, as determined under sub-section (2)
of section 28, and the interest payable thereon under section 28AB, 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 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 28AB, 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 sub-section (2) of section 28 relates to notices issued prior to the date on which
the Finance Act, 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.
Important ruling on Section 114A
Penalty equal to duty is not leviable under Section 114A of Customs Act
SECTION 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. (vide Taxation Laws Amendment Act,2006)

SECTION 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 :
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.

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SECTION 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 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

SECTION 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 ten thousand rupees.
SECTION 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

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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 Commissioner of Customs or  a Joint Commissioner of Customs;
(b) where the value of the goods liable to confiscation does not exceed two lakhs rupees, by an
Assistant Commissioner of Customs or Deputy Commissioner of Customs;
( c)where the value of the goods liable to confiscation does not   exceed ten thousand rupees, by a
Gazetted Officer of Customs lower in rank than an Assistant Commissioner of Customs

SECTION 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.

SECTION 123. Burden of proof in certain cases. 

(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, and manufactures thereof, watches, and any other class of
goods which the Central Government may by notification in the Official Gazette specify.

SECTION 124. Issue of show cause notice before goods, etc confiscation of.
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 writing with the prior approval of the officer of Customs not below the
rank of a Deputy 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.

SECTION 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 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 :
Provided 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.
(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.

SECTION 126. On Government confiscation, property to vest in Central. –

(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.

SECTION 127.Award not to interfere of confiscation or penalty by customs officers 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.

CHAPTER XIVA SETTLEMENT OF CASES

SECTION 127A. Definitions. In this Chapter, unless the context otherwise requires,
-
(a) “Bench” means a Bench of the Settlement Commission;
(b)“case” means any proceeding under this Act or any other Act  for the levy, assessment
and collection of customs duty, or any proceeding by way of appeal or revision in connection
with such levy, assessment or collection, which may be pending before a proper officer or
the Central Government on the date on which an application under sub-section (1) of
section 127B is made :
Provided that where any appeal or application for revision has been preferred after the
expiry of the period specified for the filing of such appeal or application for revision under
this Act and which has not been admitted, such appeal or revision 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 Customs and Central Excise  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.
SECTION 127B. Application for settlement of cases.   
(1) Any importer, exporter or any other person (hereinafter referred to as the applicant in
this Chapter) may, at any stage of a case relating to him make an application 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 or otherwise of goods, to the Settlement Commission to have the case
settled and such application shall be disposed of in the manner hereinafter provided :
Provided that no such application shall be made unless -
(a)the applicant has filed a bill of entry, or a shipping bill, in respect of import or export of
goods, as the case may be, and in relation to such Bill of entry or shipping bill 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 two
lakh rupees :
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).
(2)Where any dutiable goods, books of account, other documents or any sale proceeds of
the goods have been seized under section 110, the applicant shall not be entitled to make
an application under sub-section (1) before the expiry of one hundred and eighty days from
the date of the seizure.
(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.
SECTION 127C. Procedure on receipt of application under section  127B. –
(1) On receipt of an application under section 127B, the Settlement Commission shall call
for a report from the Commissioner of Customs having jurisdiction and on the basis of the
materials contained in such report and having regard to the nature and circumstances of the
case or the complexity of the investigation involved therein, the Settlement Commission
may, by order, allow the application to be proceeded with or reject the application :
Provided that an application shall not be rejected under this sub-section, unless an
opportunity has been given to the applicant of being heard :
Provided further that the Commissioner of Customs shall furnish such report within a period
of one month of the receipt of the communication from the Settlement Commission, failing
which it shall be presumed that the Commissioner of Customs has no objection to such
application; but he may raise objections at the time of hearing fixed by the Settlement
Commission for admission of the application and the date of such hearing shall be
communicated by the Settlement Commission to the applicant and the Commissioner of
Customs within a period not exceeding two months from the date of receipt of such
application, unless the presiding officer of the Bench extends the said period of two months,
after recording the reasons in writing.
(2)A copy of every order under sub-section (1) shall be sent to the applicant and to the
Commissioner of Customs having jurisdiction.
(3)Subject to the provisions of sub-section (4), the applicant shall, within thirty days of the
receipt of a copy of the order under sub-section (1) allowing the application to be proceeded
with, pay the amount of additional duty admitted by him as payable and shall furnish proof
of such payment to the Settlement Commission.
(4)If the Settlement Commission is satisfied, on an application made under sub-section (1)
that the applicant is unable for good and sufficient reasons to pay the amount referred to in
sub-section (3), within the time specified in that sub-section, it may extend the time for
payment of the amount which remains unpaid or allow payment thereof by instalments, if
the applicant furnishes adequate security for the payment thereof.
(5)Where the additional amount of customs duty referred to in sub-section (3) is not paid
by the applicant within the time specified or extended period, as the case may be, the
Settlement Commission may direct that the amount which remains unpaid, together with
simple interest at the rate of eighteen per cent. per annum or at the rate notified by the
Board from time to time on the amount remaining unpaid, be recovered as the sum due to
the Central Government by the proper officer having jurisdiction over the applicant in
accordance with the provisions of section 142.
(6)Where an application is allowed to be proceeded with under sub-section (1), the
Settlement Commission may call for the relevant records from the Commissioner of
Customs having jurisdiction and after examination of such records, if the Settlement
Commission is of the opinion that any further enquiry or investigation in the matter is
necessary, it may direct the Commissioner (Investigation) to make or cause to be made
such further enquiry or investigation and furnish a report on the matters covered by the
application and any other matter relating to the case.
(7)After examination of the records and the report of the Commissioner of Customs
received under sub-section (1), and the report, if any, of the Commissioner (Investigation)
of the Settlement Commission under sub-section (6), and after giving an opportunity to the
applicant and to the 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 Commissioner of Customs or the
Commissioner (Investigation) under sub-section (1) or sub-section (6).
(8)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 (7) and, in
relation to the passing of such order, the provisions of section 32D of the Central Excise Act,
1944 (1 of 1944) shall apply.
(9)Every order passed under sub-section (7) shall provide for the terms of settlement
including any demand by way of duty, penalty or interest, the manner in which any sum due
under the settlement shall be paid and all other matters to make the settlement effective
and 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.
(10)Where any duty payable in pursuance of an order under sub-section (7) is not paid by
the applicant within thirty days of the receipt of a copy of the order by him, then, whether
or not the Settlement Commission has extended the time for payment of such duty or has
allowed payment thereof by instalments, the applicant shall be liable to pay simple interest
at the rate of eighteen per cent. per annum or at such other rate as notified by the Board on
the amount remaining unpaid from the date of expiry of the period of thirty days aforesaid.
(11)Where a settlement becomes void as provided under sub-section (9) 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 proper officer 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.
SECTION 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.
SECTION 127E. Power of Settlement Commission to reopen completed 
proceedings. –
If the Settlement Commission is of the opinion (the reasons for such opinion to be recorded
by it in writing) that, for the proper disposal of the case pending before it, it is necessary or
expedient to reopen any proceeding connected with the case but which has been completed
under this Act before application for settlement under section 127B was made, it may, with
the concurrence of the applicant, reopen such proceeding and pass such order thereon as it
thinks fit, as if the case in relation to which the application for settlement had been made by
the applicant under that section covered such proceeding also :
Provided that no proceeding shall be reopened by the Settlement Commission under this
section after the expiry of five years from the date of application under sub-section (1) of
section 127B.
SECTION 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 (7) of section 127C, have, subject to the provisions of sub-section (6) 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 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.
SECTION 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.
SECTION 127H.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 or under the Indian Penal Code
(45 of 1860) 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 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)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 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, 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.
SECTION 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 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.
SECTION 127J. Order of settlement to be conclusive. - 
Every order of settlement passed under sub-section (7) 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.
SECTION 127K. Recovery of sums due under order of settlement.  -
Any sum specified in an order of settlement passed under sub-section (7) 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.
SECTION 127L. Bar on subsequent application for settlement in  certain cases. -
Where, -
(i)an order of settlement passed under sub-section (7) of section 127C 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
(ii)after the passing of an order of settlement under said sub-section (7) 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.
SECTION 127M. Porceedings 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).
SECTION 127MA. Certain persons who have filed appeals to the Appellate Tribunal
entitled to make applications to the Settlement Commission. –
(1) Notwithstanding anything contained in this Chapter, any person who has filed an appeal
to the Appellate Tribunal under this Act, on or before the 29th day of February, 2000 and
which is pending, shall, on withdrawal of such appeal from the Appellate Tribunal, be
entitled to make an application to the Settlement Commission to have his case settled under
this Chapter :
Provided that no such person shall be entitled to make an application under this section in a
case where the Commissioner of Customs or any officer on his behalf has, on or before the
date on which the Finance Act, 2000 receives the assent of the President, applied to the
Appellate Tribunal for the determination of such points arising out of the decision or order
specified by the Board in its order under sub-section (1) of section 129D or filed an appeal
under sub-section (2) of section 129A, as the case may be.
(2) Any person referred to in sub-section (1) may make an application to the Appellate
Tribunal for permission to withdraw the appeal.
(3) On receipt of an application under sub-section (2), the Appellate Tribunal shall grant
permission to withdraw the appeal.
(4) Upon withdrawal of the appeal, the proceedings in appeal immediately before such
withdrawal shall, for the purposes of this Chapter, be deemed to be a proceeding pending
before a proper officer.
(5) An application to the Settlement Commission under this section shall be made within a
period of thirty days from the date on which the order of the Appellate Tribunal permitting
the withdrawal of the appeal is communicated to the person.
(6) An application made to the Settlement Commission under this section shall be deemed
to be an application made under sub-section (1) of section 127B and the provisions of this
Chapter, except sub-section (11) of section 127C and sub-section (1) of section 127-I, shall
apply accordingly.
(7) Where an application made to the Settlement Commission under this section is not
entertained by the Settlement Commission, then, the appeal shall be deemed to have been
revived before the Appellate Tribunal and the provisions contained in section 129A, section
129B and section 129C shall, so far as may be, apply accordingly.
(8) The Settlement Commission may, if it is of opinion that any person who made an
application under sub-section (5) has not co-operated with the proceedings before it, send
the case back to the Appellate Tribunal and the provisions containing in section 129A,
section 129B and section 129C shall, so far as may be, apply accordingly.
SECTION 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.

CHAPTER XV APPEALS AND REVISION

SECTION 128 Appeals to 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 Commissioner of Customs may appeal to the Commissioner
(Appeals) within sixty days from the date of the communication to him of such decision or
order :
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.
(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.
SECTION 128A.Procedure in appeal. 
(1) The Commissioner (Appeals) shall give an opportunity to the appellant to be heard if he
so desires.
(2)The 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 Commissioner
(Appeals) is satisfied that the omission of that ground from the grounds of appeal was not
wilful or unreasonable.
(3)The Commissioner (Appeals) shall, after making such further inquiry as may be
necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling
the decision or order appealed against :
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 :
Provided further that where the 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 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.
(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 Commissioner (Appeals) shall communicate the order
passed by him to the appellant, the adjudicating authority , the Chief Commissioner of
Customs and the Commissioner of Customs.
SECTION 129. Appellate Tribunal. 
(1) The Central Government shall constitute an Appellate Tribunal to be called the Customs,
Excise and 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.
(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 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 Commissioner of Customs or
Central Excise or any equivalent or higher post for at least three years.
(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.
(5)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.
SECTION 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 Commissioner of Customs as an adjudicating
authority;
(b) an order passed by the Commissioner (Appeals) under section 128A;
(c) an order passed by the Board or the Appellate Commissioner of Customs under
Section 128, as it stood immediately before the appointed day;
(d) an order passed by the Board or the Commissioner of Customs, either before or after
the appointed day, under section 130, as it stood immediately before that day :
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
(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 fifty thousand rupees.
(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, 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.
(1B) (i) The Board may, by notification in the Official Gazette, 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) The Committee of Commissioners of Customs may, if it is of opinion that an order
passed by the Appellate Commissioner of Customs under section 128, as it stood
immediately before the appointed day, or by the Commissioner (Appeals) under section
128A, is not legal or proper, direct the proper officer to appeal on its behalf to the Appellate
Tribunal against such order.
(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 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).
(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.
(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 for grant of stay or 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 Commissioner of Customs under this sub-section.
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.
(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 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 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.
(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 :
Provided that where an order of stay is made in any proceeding relating to an appeal filed
under sub-section (1) of section 129A, the Appellate Tribunal shall dispose of the appeal
within a period of one hundred and eighty days from the date of such order :
Provided further that if such appeal is not disposed of within the period specified in the first
proviso, the stay order shall, on the expiry of that period, stand vacated.
(3)The Appellate Tribunal shall send a copy of every order passed under this section to the
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.
SECTION 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 sub-section (4), a Bench shall consist of one
judicial member and one technical member.
(3)omitted
(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 ten lakhs rupees.
(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.
(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).
SECTION 129D. Powers of Committee of Chief Commissioners of Customs or
Commissioner of Customs] to pass certain orders.
(1) The Committee of Chief Commissioners of Customs may, of its own motion, call for and
examine the record of any proceeding in which a 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 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 by the Committee of Chief Commissioners of Customs in its order.
(2)The 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 such authority or any
officer of Customs subordinate to him to apply to the Commissioner (Appeals) for
the determination of such points arising out of the decision or order as may be specified by
the Commissioner of Customs in his order.
(3)The Committee of Chief Commissioners of Customs or the Commissioner of Customs, as
the case may be, shall, where it is possible to do so, make order under sub-section (1) or
sub-section (2), within a period of six months, but not beyond a period of one year, from
the date of the decision or order of the adjudicating authority.
(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
Commissioner of Customs, makes an application to the Appellate Tribunal or the
Commissioner (Appeals) within a period of three months 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 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.
(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 of 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.
SECTION 129DA. Powers of revision of Board or Commissioner 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 Commissioner 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 Commissioner 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 Commissioner 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 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 proceedings 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, 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.
SECTION 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.
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, 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.
(1A) The 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.
(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, -
(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.
SECTION 129E. Deposit, pending appeal, of duty and interest  demanded or
penalty levied. –
Where in any appeal under this Chapter, the decision or order appealed against relates to
any duty and interest demanded in respect of goods which are not under the control of the
customs authorities or any penalty levied under this Act, the person desirous of appealing
against such decision or order shall, pending the appeal, deposit with the proper officer the
duty and interest demanded or the penalty levied :
Provided that where in any particular case, the Commissioner (Appeals) or the Appellate
Tribunal is of opinion that the deposit of duty and interest demanded or penalty levied
would cause undue hardship to such person, the Commissioner (Appeals) or, as the case
may be, the Appellate Tribunal may dispense with such deposit subject to such conditions
as he or it may deem fit to impose so as to safeguard the interests of revenue :
Provided further that where an application is filed before the Commissioner (Appeals) for
dispensing with the deposit of duty and interest demanded or penalty levied under the first
proviso, the Commissioner (Appeals) shall, where it is possible to do so, decide such
application within thirty days from the date of its filing.
SECTION 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 purposes of assessment), if the High Court is satisfied that the
case involves a substantial question of law.
(2) The 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 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.
(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 C

CHAPTER XVI OFFENCES AND PROSECUTIONS

SECTION 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
two years, or with fine, or with both.
SECTION 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 two years, or with fine, or with both.
SECTION 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.
SECTION 135.Evasion of duty or prohibitions. –
(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 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 or section 113 as the case may be, or
( c)attempts to export any goods which he knows or has reason to  believe are liable to
confiscation under section 113,
he shall be punishable, -
(i)in the case of an offence relating to any of the goods to which section 123 applies and
the market price whereof exceeds one lakh of rupees, 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 three years;
(ii)in any other case, with imprisonment for a term which may extend to three years, or
with fine, or with both.
(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 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 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.
SECTION 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.
SECTION 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.
SECTION 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 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 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.
(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.
SECTION 137. Cognizance of offences. –
(1) No court shall take cognizance of any offence under section 132, section 133, section
134 or section 135 or section 135A, except with the previous sanction of the
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 Assistant 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 Assistant Commissioner of Customs except with the previous sanction of the
Commissioner of Customs.
(3) Any offence under this Chapter may, either before or after the institution of prosecution,
be compounded by the Chief Commissioner of Customs on payment, by the person accused
of the offence to the Central Government, of such compounding amount as may be specified
by rules.
SECTION 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 [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.
SECTION 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.
SECTION 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.
SECTION 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 (hereinafter referred to as a “computer print out”), if the conditions mentioned in
sub-section (2) and the other provisions contained in this section are satisfied in relation to
the statement and the computer in question,
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 print out shall be
the following, namely :-
(a)the computer print out 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.
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 therefrom by calculation, comparison or any other process.
SECTION 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.
Explanation. - For the purposes of this section, “document” includes inventories,
photographs and lists certified by a Magistrate under sub-section (1C) of section 110.
SECTION 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.
SECTION 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

SECTION 141.Conveyances and goods in a customs area subject to  control of
officers of customs. –

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.

SECTION 142. Recovery of sums due to Government.–

(1) Where any sum payable by any person under this Act 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 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
Assistant Commissioner of Customs or Deputy Commissioner of Customs or such other
officer of customs; or
( c)if the amount cannot be recovered from such person in the  manner provided in clause
(a) or clause (b) -
(i)the 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 thereunder as if it were an arrear of land revenue;
or
(ii)the proper officer may, on an authorisation by 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.
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 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.
(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.
SECTION 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 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 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 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.
(2)If the thing is done within the time specified in the bond, the 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 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.
SECTION 143A. Duty deferment. – (1) When any material is imported under an import
licence belonging to the category of Advance Licence granted under the Imports and
Exports (Control) Act, 1947 (18 of 1947), subject to an obligation to export the goods as
are specified in the said Licence within the period specified therein, the Assistant
Commissioner of Customs or Deputy Commissioner of Customs may, notwithstanding
anything contained in this Act, permit clearance of such material without payment of duty
leviable thereon.
(2)The permission for clearance without payment of duty under sub-section (1) shall be
subject to the following conditions, that is to say -
(a)the duty payable on the material imported shall be adjusted  against the drawback of
duty payable under this Act or under any other law for the time being in force on the export
of goods specified in the said Advance Licence; and
(b)where the duty is not so adjusted either for the reason that the goods are not exported
within the period specified in the said Advance Licence, or within such extended period not
exceeding six months as the Assistant Commissioner of Customs or Deputy Commissioner
of Customs may, on sufficient cause being shown, allow, or for any other sufficient reason,
the importer shall, notwithstanding anything contained in section 28, be liable to pay the
amount of duty not so adjusted together with simple interest thereon at the rate of twelve
per cent per annum from the date the said permission for clearance is given to the date of
payment.
(3)While permitting clearance under sub-section (1), the Assistant Commissioner of
Customs or Deputy Commissioner of Customs may require the importer to execute a bond
with such surety or security as he thinks fit for complying with the conditions specified in
sub-section (2).
SECTION 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 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, if such duty
amounts to five rupees or more.
SECTION 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.
SECTION 146. Custom House agents to be licensed.–
(1) No person shall carry on business as an agent 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 any such licence;
(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 an agent;
(d)the restrictions and conditions (including the furnishing of  security by the licensee)
subject to which a licence may be granted;
(e)the circumstances in which a licence may be suspended or revoked; and
(f) the appeals, if any, against an order of suspension or revocation of a licence, and the
period within which such appeals shall be filed.
SECTION 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, “authorized 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 custom house agent 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
(b)who is convicted of an offence connected with any proceeding  under this Act, the
Central Excises and Salt Act, 1944 (1 of 1944), or the Gold (Control) Act, 1968 (45 of
1968); 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 Commissioner of Customs or the
competent authority under the Central Excises and Salt Act, 1944, or the Gold (Control) Act,
1968, 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).
(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 practise 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 direct that he shall thenceforth be disqualified to represent any
person under sub-section (1).
(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.
SECTION 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 :
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 Assistant Commissioner
of Customs or Deputy Commissioner of Customs the same cannot be recovered from the
owner, importer or exporter.
SECTION 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.
SECTION 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 :
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.
SECTION 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.
SECTION 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.
SECTION 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, 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 Commissioner of Customs (Appeals) in the
exercise of his appellate functions.
SECTION 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 a Chief
Commissioner of Customs or a Commissioner of Customs empowered in this behalf by the
Central Government;
(b) any power exercisable by a Commissioner of Customs under this Act may be
exercisable also by a Joint Commissioner of Customs or an Assistant Commissioner of
Customs or Deputy Commissioner of Customs empowered in this behalf by the Central
Government;
( c)any power exercisable by a Joint Commissioner of Customs under this Act may be
exercisable also by an Assistant Commissioner of Customs or Deputy Commissioner of
Customs empowered in this behalf by the Central Government;
(d) any power exercisable by an Assistant Commissioner of Customs or Deputy
Commissioner of Customs under this Act may be exercisable also by a Gazetted Officer of
Customs empowered in this behalf by the Board.
SECTION 153. Service of order, decision, etc.–
Any order or decision passed or any summons or notice issued under this Act, shall be
served -
(a)by tendering the order, decision, summons or notice or sending it by registered post to
the person for whom it is intended or to his agent; or
(b)if the order, decision, summons or notice cannot be served in the manner provided in
clause (a), by affixing it on the notice board of the customs house.
SECTION 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.
SECTION 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.

SECTION154B.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 disposal 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.” (vide
Taxation Laws Amendment Act,2006)

SECTION 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.
(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.
SECTION 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 :-
(a)the manner of determining the price of imported goods under sub-section (1A) 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;
(c) omitted
(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;
(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.
(h) the amount to be paid for compounding under sub-section (3) of section 137.
SECTION 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 :-
(a) the form of a bill of entry, shipping bill, bill of export, import manifest, import report,
export manifest, export report, bill of transhipment, declaration for transhipment boat note
and bill of coastal goods;
(aa) the form and manner in which an application for refund shall be made under section
27;
(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.
SECTION 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;
(ii) that any person who contravenes any provision of a rule or regulation or abets such
contravention or any person who fails to comply with any provision of a rule or regulation
with which it was his duty to comply, shall be liable, -
(a) in the case of contravention or failure to comply with a rule, to a penalty which may
extend to five hundred rupees;
(b) in the case of contravention or failure to comply with a regulation, to a penalty which
may extend to two hundred rupees.
SECTION 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.