Sunday, December 29, 2013

THE PETROLEUM AND MINERALS PIPELINES (ACQUISITION OF RIGHT OF USER INLAND) ACT, 1962[PART III]

CHAPTER X 
DRAWBACK

74.Drawback allowable on re-export of duty-paid goods. (1) When any goods capable of being easily identified which have been imported into India and upon which 2[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, the re-paid as drawback, if-".]
(a) the goods are identified to the satisfaction of the
[Assistant Commissiner 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.
4["(3) The Central Government may make rules for the purpose of carr-
ying out the provisions of this section and, in particular, may such regulations may-
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1. Subs. by Act 11 of 1983, s.51.2. Subs. by Act 80 of 1985, s.6.3. Subs. by Act 55 of 1991, s.9 (w.e.f. 23-12-1991).
4. Subs. by Act 22 of 1995, S. 60.
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1206.(a) provide for the manner in which the identity of goods impo-
rted in different consignments which are ordinarily stored tog-
ether 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 in which a claim for payment of drawback is to be filed."]
(4) For the purposes of this section-
(a) goods shall be deemed to have been entered for export on the date with reference to which the rate of duty is calculated under section 16 ;
(b) in the case of goods assessed to duty provisionally under section 18, the date of payment of the provisional duty shall be deemed to be the date of payment of duty.
75.Drawback on imported materials used in the manufacture of goods whichare exported.
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
5[manufactured, processed or on which any operation as been carried out in India] 2["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] 3["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 5[manufacture 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)
4["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 subsection (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 of such goods or class of goods, or is not more than such percentage of the value of the imported materials used in the manufacture of 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 Regulation Act, 1973, 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."]
1["(1A) Where it appears to the Central Government that the quint of a particular material imported into India is more than the total.
quantity of like material that has been used in the goods 5[manufactu-
red, processed or on which any operation has been carried out in India]
and exported outside India,. then, the Central Government may, by notification in the Official Gazette, declare that so, much of the material as is contained in the goods exported shall, for the, purpose of sub-section (1), be deemed to be imported material”.]
(2) The Central Government may make rules for the purpose of carrying out the provisions of sub-section (1) and, in particular, such rules may provide-
5[(a) for the payment of drawback equal to the amount of duty actually paid on the imported materials used in the manufacture of or processing of the goods or carriying 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 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 pe-
rson carrying on any process or other operation,and interest, if any, payable thereon;"]
4["(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)",the words "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 5[manufacturer or the person carry on any process or other operation] to give access to every part of his 5[manufactory to any officer of customs specially authorised in this behalf by the Assistant Commissiner of
Customs to enable such authorised officer to inspect the processes of 5[manufacture, process or any other operations carried out] and to verify by actual check or otherwise the statements made in support of the claim for drawback.
5[(d) for the manner and the time within which the claim for payment of drawback may be filed;]
5[(3) The power to make rules confered 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 and export goods]
———————————————————————-
1. Ins. & Subs. by Act 25 of 1978, s.10 (w.e.f. 1-7-1978).
2. Subs. by Act 11 of 1983, s.52.3. Ins. by Act 80 of 1985, s.7 (w.e.f. 13-5-1983).
4. Ins. by Act 49 of 1991, s.120.———————————————————————–
1207.76.Prohibition and regulation of drawback in certain cases.
76. Prohibition and regulation of drawback in certain cases. (1)
Notwithstanding anything hereinbefore contained, no drawback shall be allowed-
(a) 1* * * * *
(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
1[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 XIIISEARCHES, SEIZURE AND ARREST

100. Power to search suspected persons entering or leaving India, etc. (1) If the proper officer has reason to believe that any person to whom this section applies has secreted about his person, any goods liable to confiscation or any documents relating thereto, he may search that person.
(2) This section applies to the following persons, namely:-
(a) any person who has landed from or is about to board or is on board any vessel within the Indian customs waters;
(b) any person who has landed from or is about to ,board, or is on board a foreign-going aircraft ;
(c) any person who has got out of, or is about to get into, or is in, a vehicle, which has arrived from, or is to proceed to any place outside India ;
(d) any person not included in clause (a), (b) or (c) who has entered or is about to leave India ;
(e) any person in a customs area.
101.Power to search suspected persons in certain other cases.
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
1214.order of the 2[Commissiner 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.
102.Persons to be searched may require to be taken before gazetted officerof customs or magistrate.
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.
103.Power to screen or X-ray bodies of suspected persons for detectingsecreted good.
103. Power to screen or X-ray bodies of suspected persons for detecting secreted good. (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
1215.such person has any such goods secreted inside his body, forthwith discharge such person.
(3) Where any such magistrate has reasonable ground for believ-
ing 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 quali-
fications 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 ins-de 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 pro-
visions 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 it 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.)
1216.104.Power to arrest.
104. Power to arrest. (1) If an officer of customs empowered in this behalf by general or special order of the 1[Commissiner of Custo-
ms] has reason to believe that any person in India or within the Indian customs waters has been guilty of an offence punishable under section
135, he I may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest.
(2)Every person arrested under sub-section (1) shall, without unnecessary delay, he 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 c-
ognizable.
105.Power to search premises.
105.Power to search premises. (1) If the 2[Assistant Commissiner 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 sue goods, documents or things.
(2)The provisions of the Code of Criminal Procedure, 1898, (5 of
1898) relating to searches shall, so far as maybe, 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 3[Commissiner of Customs]
were substituted.
106.Power to stop and search conveyances.
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;
1217.(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 falls 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.
106A
Power to inspect. 1[106A. Power to inspect. Any proper officer authorised in thisbehalf by the 2[Commissiner of Customs] may, for the purpose ofascertaining whether or not the requiremen
107.Power to examine persons.
107.Power to examine persons. Any officer of customs empowered in this behalf by general or special order of the [Commissiner 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.
———————————————————————-
1 Ins. by Act 12 of 1969, s.3 (w.e.f. 3-1-1969).
———————————————————————-
1218.108.Power to summon persons to give evidence and produce documents.
108.Power to summon persons to give evidence and produce documents. (1) Any gazetted officer of customs 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 in connection with the smuggling of any goods.
(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 requisi-
tion 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 (45 of 1860).
109.Power to require production of order permitting clearance of goodsimported by land.
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.
110.Seizure of goods documents and things.
110.Seizure of goods documents and things. (1) If the proper 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 proceeding 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 (lB), 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:
———————————————————————-
1. Ins. by Act 80 of 1985, s.8.———————————————————————-
1219.Provided that the aforesaid period of six months may, on sufficient cause being shown, be extended by the [Commissiner of Cust-
oms] 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
CHAPTER XIVCONFISCATION OF GOODS AND CONVEYANCES AND IMPOSITION OF PENALTIES

111.Confiscation of improperly imported goods, etc. The following goods brought from a place outside India shall be liable to confiscation;-
(a) any goods imported by sea or air which are unloaded or attempted 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 7for 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
1220.32, 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 inrespect of which the order permitting clearance of the goods required to be produced under section 109 is not produced or which do not correspond in any material particular with the specification contained therein;
(l)any dutiable or prohibited goods which are not included or are in excess of those included in the entry made under this
Act, or in the case of baggage in the declaration made under section 77 ;
(m) 2[ any goods which do not correspond in respect of value or in any other particular] with the entry made under this
Act or in the case of baggage with the declaration made under section 77 in respect thereof;
(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.
1[(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.]
———————————————————————-
1 Ins.,by Act 12 of 1969, s. 4 (w.e.f. 3-1-1969).
2 Subs. by Act 36 of 1973, s. 2.———————————————————————-
1221.112.Penalty for improper importation of goods, etc.
112. Penalty for improper importation of goods, etc. Any person,-
(a)who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 111, or abets the doing or omission of such an act, or
(b)who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, con-
cealing, 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 five times the value of the goods or one thousand rupees, whichever is the greater;
(ii) in the case of dutiable goods, other than prohibited goods, to a penalty not exceeding five times the duty sought to be evaded on such goods or one thousand rupees, whichever is the greater;
1(iii) in the case of goods in respect of which the value stated in 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 five times the difference between the declared value and the value thereof or one thousand rupees, whichever is the greater;
(iv) in the case of goods falling both under clauses (i) and
(iii), to a penalty not exceeding five times the value of the goods& or five times the difference between the declared value and the value thereof or one thousand rupees, whichever is the highest;
(v)in the case of goods falling both under clauses (ii) and
(iii)to a penalty not exceeding five times the duty sought to be evaded on such goods or five times the difference between the declared value and the value thereof or one thousand rupees, whichever is the highest.]
113.Confiscation of goods attempted to be improperly exported, etc.
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 dutiable Or prohibited 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 an customs area for the purpose of being exported, contrary to any prohibition imposed by or under this Act or any other-law for the time being in force;
———————————————————————-
1 Ins. by Act 36 of 1973, S. 3.———————————————————————-
1222.(e)any dutiable or prohibited goods found concealed in a package which is brought within the limits of a customs area for the purpose of exportation ;
(f)any dutiable or prohibited goods which are loaded or attempted to be loaded in contravention of the provisions of section 33 or section 34 ;
(g)any dutiable or prohibited 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 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.(i)any dutiable or prohibited goods 2[or goods entered for exportation under claim for drawback] which do not correspond in any material particular with the entry made under this
Act or in the case of baggage with the declaration made under section 77 in respect thereof ;
3["(ii) any goods entered for exportation under claim for drawback which do not correspond in any material particular with any information furnished by the exporter or manufacturer under this Act in relation to the fixation of rate of drawback under section 75".]
(j)any goods on which import duty has not been paid and which are entered for exportation under a claim for drawback under section 74;
(k)any goods cleared for exportation under a claim for draw back 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.
1((l) any specified goods in relation to which any provisions of Chapter IVB or of any rule made under this Act for carrying out the purposes of that Chapter have been contravened.]
114.Penalty for attempt to export goods improperly, etc.
114.Penalty for attempt to export goods improperly, etc. Any person who in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall be liable,-
(i) in the case of goods in respect of which any prohibition is
———————————————————————-
1 Ins. by Act 12 of 1969 s. 5 (w.e.f 3-1-1969).
2 Ins. by Act 25 of 1978, s. 11 (w.e.f. 1.7. 1978)
3 Ins. by Act 49 of 1991, S. 120.———————————————————————-
1222A
in force, to a penalty not exceeding five times the value of the goods or one thousand rupees, whichever is the greater;
(ii) in the case of dutiable goods, other than prohibited goods. to a penalty not exceeding five times the duty sought to be evaded on such goods or one thousand rupees, whichever is the greater ;
(iii) in the case of goods under claim for drawback, to a penalty not exceeding five times the amount of drawback claimed or one thousand rupees, whichever is the greater.
115.Confiscation of conveyances.
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
1223.(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 (1 * * *
Provided that where any such conveyance is used for the carriage of goods or passengers for hire, the owner of any conveyance shall be given an option to pay In lieu of the confiscation of the conveyance a fine not exceeding the market price of the goods which are sought to be smuggled or the smuggled goods, as the case may be.
Explanation.-In this section. ” market price ” means market price at the date when the goods are seized.
116.Penalty for not accounting for goods.
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
———————————————————————-
1 Omitted by Act 26 of 1988, S. 79.———————————————————————-
1224.of the [Assistant Commissiner 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.
117.Penalties for contravention, etc., not expressly mentioned.
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 one thousand rupees.
118.confiscation of packages and their contents.
118. confiscation of packages and their contents. (a) Where any goods imported in a package are liable to confiscation, the package and any other goods imported in that package shall also be liable to confiscation.
(b) Where any goods are brought in a package within the limits of a customs area for the purpose of exportation and are liable to confiscation, the package and any other goods contained therein shall also be liable to confiscation.
119.Confiscation of goods used for concealing smuggled goods.
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 con-
veyance used as a means of transport.
120.Confiscation of smuggled goods notwithstanding any change in from,etc.
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
1225.goods, only such part of the goods the value of which is equal to the value of the, smuggled goods shall be liable to confiscation.
121.Confiscation of sale-proceeds of smuggled goods.
121. Confiscation of sale-proceeds of smuggled goods. Where any smuggled goods are sold by a person having knowledge or reason to believe that the goods are smuggled goods, the sale-proceeds thereof shall be liable to confiscation.
122.Adjudication of confiscations and penalties.
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 of or penalty may be adjudged,-
(a) without limit, by a [Collector of Customs] or a [Deputy
Collector of Customs;]
2["(b) where the value of the goods liable to confiscation does not exceed [ fifty thousand]4, rupees by an [Assistant collector of Customs."]
(c) where the value of the goods liable to confiscation does not exceed two thousand five hundred rupees, by a gazetted officer of customs lower in rank than an [Assistant Collector of Customs.]
123.Burden of proof in certain cases.
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]3.watches, and any, other class of goods which the Central Government may by notification in the Official Gazette specify.
124.Issue of show-cause notice before confiscation of goods, etc.
124.Issue of show-cause notice before confiscation of goods, etc.
No order confiscating any goods or imposing any penalty on any person shall be made under this Chapter unless the owner of the goods or such person-
(a) is given a notice in writing 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
———————————————————————-
1 Subs.by Act 36 of 1973, S. 4.2 Subs. by Act 25 of 1978 , S. 12.3 Subs. by Act 40 of 1989, S. 2.4 Subs. by Act 18 of 1992, s. 109.———————————————————————-
1226.(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.
125.Option to pay fine in lieu of confiscation.
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 8[ 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 provision to sub-section (2) of section 115, such fine shall not exceed the price of the goods confiscated, less in the case of imported goods duty chargeable thereon.
8[(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."]
126.On confiscation, property to vest in Central Government.
126.On confiscation, property to vest in Central Government. (1)
When any goods are confiscated under this Act such goods shall thereupon vest in the Central Government.
(2) The officer adjudging confiscation shall take and hold possession of the confiscated goods.
127.Award of confiscation or penalty by customs officers not to interfarewith other punishments.
127. Award of confiscation or penalty by customs officers not to interfare 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 XVAPPEALS


128. Appeals to Commissiner (Appeals). (1) Any person aggrieved by any decision or order passed under this Act by an officer of customs lower in rank than a [Commissiner of Customs] may appeal to the Commissiner (Appeals) within three months from the date of the communication to him of such decision or order:
Provided that the Commissiner (Appeals) may, if he, is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months.
(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 behalf.
128A
Procedure in appeal. 128A. Procedure in appeal. (1) The [Commissiner
(Appeals)] shallgive an opportunity to the appellant to be heard if he so desires. (2) The [Commissiner (Appeals)] may, at
129.Appellate Tribunal.
129.Appellate Tribunal. (1) The Central Government shall constitute an Appellate Tribunal to be called the Customs, Excise and Gold (Control) 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 Central Legal service and has held a post Grade I of that service or any equilent or higer post for at least three years, or 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 advocate or has held the office of a member of a trubinal 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 person has held a judicial office or the office of a member of a trubinal 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 1(Commissiner of Customs) or Central Excise or any equivalent or higher post for at least three years.)
(3) The Central Government shall appoint one of the members of the Appellate Tribunal to be the President thereof.
(4) The Central Government may appoint one or more of the
Appellate Tribunal to be the Vice-President, or as the case be,Vice-
Presidents, thereof.
3["(4A) The Central Government may appoint one of the Vice-
Presidents of the Appellate Tribunal to be the Senior Vice-President thereof."].
(5) 3[ The Senior Vice-President or 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.
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 [Commissiner of
Customs] as an adjudicating authority;
(b) an order passed by the [Commissiner (Appeals)] under section 128A;
(c) an order passed by the Board or the Appellate Collector of Customs under section 128, as it stood immediately before the appointed day;
(d) an order passed by the Board or the [Commissiner of
Customs] either before or after the appointed day, under section 130, as it stood immediately before that day:
4[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 descretion, refused to admit an appeal in respect of an order referred to in clause
(b) or clause (c) or clause (d) were-
(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 15[fifty thousand rupees]
4(1A) Every appeal against any order of the nature referred to in the first proviso to sub-section (1), which is pending immediately before the commencement of section 40 of the Finance Act,1984 ( 21 of-
1984), before the Appellate Tribunal and any matter arising out of or connected with such appeal and which is so pending shall stand tran-
sferred 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.”]
10["(2) The [Commissiner of Customs] may, if he is of opinion that an order passed by-
(a) the Appellate [Commissiner of Customs] under section 128, as it stood immediately before the appointed day, or
(b) the [Commissiner of Customs] (Appeals) under section 128A, is not legal or proper, direct the proper officer to appeal on his behalf to the Appellate Tribunal or, as the case may be, the Customs and Excise Revenues Appellate Tribunal established under section 3 of the Customs and Excise Revenues Appellate
Tribunal Act, 1986, 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 Collector 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 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.
15["(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, in the case of an appeal made on or after the 1st day of June, 1993, 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 one lakh rupees or less, two hundred rupees;
(b) where the amount of duty and interest demanded. and penalty levied by any officer of customs in the ease to which the appeal relates is more than one lakh rupees, one 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)."]
129B
Orders of Appellate Tribunal. 129B. Orders of Appellate Tribunal. (1) The
Appellate Tribunalmay, after giving the parties to the appeal, an opportunity of beingheard, pass such orders thereon a
129E
Deposit, pending appeal, of 14[duty and interest] demanded or penaltylevied.
129E. Deposit, pending appeal, of 14[duty and interest] demandedor penalty levied. Where in any appeal under th
130.
Statement of case to High Court.
130.Statement of case to High Court. (1) The Collector of Customs or the other party may, within sixty days of the date upon which he is served with notice of an order under section 129B (not being an order relating, among other things to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment).
by application in such form as may be specified by rule made in behalf, accompanied, where the application is made by the other part by a fee of two hundred rupees, require the Appellate Tribunal refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section the
Appellate Tribunal shall, within one hundred and twenty days of the receipt of such, application, draw up a statement of the case and refer it to the High Court:
Provided that the Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be presented within a further period not exceeding thirty days.
(2)On receipt of notice that an application has been made under sub-section (1), the person against whom such application has be made, may, notwithstanding that he may not have filed such an application, file, within forty-five days of the receipt of the notice, a memo-
randum of cross-objections verified in such manner as may be specified by rules made in this behalf against any part of the order in relation to which an application for reference has been made and such memo-
randum shall be disposed of by the Appellate Tribunal as if it were an application presented within the time specified in sub-section (1).
(3)If, on an application made under sub-section (1), the
Appellate Tribunal refuses to state the case on the ground that no question of law arises, the Collector of Customs, or, as the case may be, the other party may, within six months from the date on which he is served with notice of such refusal, apply to the High Court and the
High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal. to state the case and to refer it, and on receipt of any such requisition, the Appellate Tribunal shall state the case and refer it accordingly.
(4)Where in the exercise of its powers under sub-section (3), the Appellate Tribunal refuses to state a case which it has, been required by an applicant to state, the applicant may, within thirty days from the date on which he receives notice of such refusal, withdraw his application and, if he does so, the fee, if any, paid by him shall be refunded.
130A
Statement of case to Supreme Court in certain cases. 130A. Statement of case to Supreme Court in certain cases. If,on an application made under section 130, the Appellate Tribunal is ofopinion
130B
Power of High Court or Supreme Court to require statement to be amend-ed.
130B. Power of High Court or Supreme Court to require statementto be amended. If the High Court or the Supreme C
130C
Case before High Court to be heard by not less than two judges. 130C. Case before High Court to be heard by not less than twojudges. (1) When any case has been referred to the High Court undersect
130D
Decision of High Court or Supreme Court on the case stated. 130D. Decision of High Court or Supreme Court on the case stated.(1) The High Court or the
Supreme Court hearing any such case shalld
130F
Hearing before Supreme Court. 130F. Hearing before Supreme Court. (1) The provisions of theCode of Civil Procedure, 1908, relating to appeals to the SupremeCourt shall, so far as may be
131.Sums due to be paid notwithstanding reference, etc.
131.Sums due to be paid notwithstanding reference, etc.
Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to the Supreme
Court, sums due to the Government as a result of an order passed under sub-section (1) of section 129B shall be payable in accordance with the order so passed.
131A
Exclusion of time taken for copy. 131A. Exclusion of time taken for copy.
In computing the periodof limitation specified for an or application under this Chapter, theday on which the order c
131B
Transfer of certain pending proceedings and transitional provisions. 131B.
Transfer of certain pending proceedings and transitionalprovisions. (1)
Every appeal which is pending immediately bef
128. Appeals to Commissiner (Appeals). (1) Any person aggrieved by any decision or order passed under this Act by an officer of customs lower in rank than a [Commissiner of Customs] may appeal to the Commissiner (Appeals) within three months from the date of the communication to him of such decision or order:Provided that the Commissiner (Appeals) may, if he, is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months.
(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 behalf.
128A
Procedure in appeal. 128A. Procedure in appeal. (1) The [Commissiner
(Appeals)] shallgive an opportunity to the appellant to be heard if he so desires. (2) The [Commissiner (Appeals)] may, at
129.Appellate Tribunal.
129.Appellate Tribunal. (1) The Central Government shall constitute an Appellate Tribunal to be called the Customs, Excise and Gold (Control) 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 Central Legal service and has held a post Grade I of that service or any equilent or higer post for at least three years, or 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 advocate or has held the office of a member of a trubinal 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 person has held a judicial office or the office of a member of a trubinal 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 1(Commissiner of Customs) or Central Excise or any equivalent or higher post for at least three years.)
(3) The Central Government shall appoint one of the members of the Appellate Tribunal to be the President thereof.
(4) The Central Government may appoint one or more of the
Appellate Tribunal to be the Vice-President, or as the case be,Vice-
Presidents, thereof.
3["(4A) The Central Government may appoint one of the Vice-
Presidents of the Appellate Tribunal to be the Senior Vice-President thereof."].
(5) 3[ The Senior Vice-President or 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.
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 [Commissiner of
Customs] as an adjudicating authority;
(b) an order passed by the [Commissiner (Appeals)] under section 128A;
(c) an order passed by the Board or the Appellate Collector of Customs under section 128, as it stood immediately before the appointed day;
(d) an order passed by the Board or the [Commissiner of
Customs] either before or after the appointed day, under section 130, as it stood immediately before that day:
4[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 descretion, refused to admit an appeal in respect of an order referred to in clause
(b) or clause (c) or clause (d) were-
(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 15[fifty thousand rupees]
4(1A) Every appeal against any order of the nature referred to in the first proviso to sub-section (1), which is pending immediately before the commencement of section 40 of the Finance Act,1984 ( 21 of-
1984), before the Appellate Tribunal and any matter arising out of or connected with such appeal and which is so pending shall stand tran-
sferred 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.”]


10["(2) The [Commissiner of Customs] may, if he is of opinion that an order passed by-
(a) the Appellate [Commissiner of Customs] under section 128, as it stood immediately before the appointed day, or
(b) the [Commissiner of Customs] (Appeals) under section 128A, is not legal or proper, direct the proper officer to appeal on his behalf to the Appellate Tribunal or, as the case may be, the Customs and Excise Revenues Appellate Tribunal established under section 3 of the Customs and Excise Revenues Appellate
Tribunal Act, 1986, 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 Collector 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 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.
15["(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, in the case of an appeal made on or after the 1st day of June, 1993, 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 one lakh rupees or less, two hundred rupees;
(b) where the amount of duty and interest demanded. and penalty levied by any officer of customs in the ease to which the appeal relates is more than one lakh rupees, one 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)."]
129B
Orders of Appellate Tribunal. 129B. Orders of Appellate Tribunal. (1) The
Appellate Tribunalmay, after giving the parties to the appeal, an opportunity of beingheard, pass such orders thereon a
129E
Deposit, pending appeal, of 14[duty and interest] demanded or penaltylevied.
129E. Deposit, pending appeal, of 14[duty and interest] demandedor penalty levied. Where in any appeal under th
130.
Statement of case to High Court.
130.Statement of case to High Court. (1) The Collector of Customs or the other party may, within sixty days of the date upon which he is served with notice of an order under section 129B (not being an order relating, among other things to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment).
by application in such form as may be specified by rule made in behalf, accompanied, where the application is made by the other part by a fee of two hundred rupees, require the Appellate Tribunal refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section the
Appellate Tribunal shall, within one hundred and twenty days of the receipt of such, application, draw up a statement of the case and refer it to the High Court:
Provided that the Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be presented within a further period not exceeding thirty days.
(2)On receipt of notice that an application has been made under sub-section (1), the person against whom such application has be made, may, notwithstanding that he may not have filed such an application, file, within forty-five days of the receipt of the notice, a memo-
randum of cross-objections verified in such manner as may be specified by rules made in this behalf against any part of the order in relation to which an application for reference has been made and such memo-
randum shall be disposed of by the Appellate Tribunal as if it were an application presented within the time specified in sub-section (1).
(3)If, on an application made under sub-section (1), the
Appellate Tribunal refuses to state the case on the ground that no question of law arises, the Collector of Customs, or, as the case may be, the other party may, within six months from the date on which he is served with notice of such refusal, apply to the High Court and the
High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal. to state the case and to refer it, and on receipt of any such requisition, the Appellate Tribunal shall state the case and refer it accordingly.
(4)Where in the exercise of its powers under sub-section (3), the Appellate Tribunal refuses to state a case which it has, been required by an applicant to state, the applicant may, within thirty days from the date on which he receives notice of such refusal, withdraw his application and, if he does so, the fee, if any, paid by him shall be refunded.
130A
Statement of case to Supreme Court in certain cases. 130A. Statement of case to Supreme Court in certain cases. If,on an application made under section 130, the Appellate Tribunal is ofopinion
130B
Power of High Court or Supreme Court to require statement to be amend-ed.
130B. Power of High Court or Supreme Court to require statementto be amended. If the High Court or the Supreme C
130C
Case before High Court to be heard by not less than two judges. 130C. Case before High Court to be heard by not less than twojudges. (1) When any case has been referred to the High Court undersect
130D
Decision of High Court or Supreme Court on the case stated. 130D. Decision of High Court or Supreme Court on the case stated.(1) The High Court or the
Supreme Court hearing any such case shalld
130F
Hearing before Supreme Court. 130F. Hearing before Supreme Court. (1) The provisions of theCode of Civil Procedure, 1908, relating to appeals to the SupremeCourt shall, so far as may be
131.Sums due to be paid notwithstanding reference, etc.
131.Sums due to be paid notwithstanding reference, etc.
Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to the Supreme
Court, sums due to the Government as a result of an order passed under sub-section (1) of section 129B shall be payable in accordance with the order so passed.
131A
Exclusion of time taken for copy. 131A. Exclusion of time taken for copy.
In computing the periodof limitation specified for an or application under this Chapter, theday on which the order c
131B
Transfer of certain pending proceedings and transitional provisions. 131B.
Transfer of certain pending proceedings and transitionalprovisions. (1)
Every appeal which is pending immediately bef
CHAPTER XVIOFFENCES AND PROSECUTIONS

132. False declaration, false documents, etc. Whoever makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document in the transaction of any business relating to the customs, knowing or having reason to believe that such declaration statement or document is false in any material particular, shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both.
133.Obstruction of officer of customs.
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 extends to six months or with fine, or with both.
134.Refusal to be X-rayed.
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
1230
medical practitioner for bringing out goods liable to con-
fiscation secreted inside his body, as provided in section
103 ;
he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both.
135.Evasion of duty or prohibitions.
135.Evasion of duty or prohibitions. 1[(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 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, conceal-
ing, 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,
he shall be punishable,-
(i) in the case of an offence relating to any of the goods which section 123 applies and the market price where of exceeds one lakh of rupees, with imprisonment for a term which may extend to 2[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 3[ three year]
(ii) in any other case, with imprisonment for a term which may extend to 4[Three year], or with fine, or with both.
5["(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 6[ one year].
(3) For the Purposes of sub-section (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 6[ one year]
namely:-
(i) the fact that the accused has been convicted for the first time for an offence under this Act;
(ii) the fact that in any proceeding under this Act, other than a prosecution, the accused has been ordered to pay a penalty or the goods which are the subject matter of such proceedings have been ordered to be confiscated or any other action has been taken against him for the same act which constitutes the offence;
(iii) the fact that the accused was not the principal offender and was acting merely as a carrier of goods or otherwise was a secondary party to the commission of the offence; (iv) the age of the accused.”]
1. S. 135 renumbered as sub-section (1) thereof by Act 36 of 1973, s.
5.2. Subs. by s. 5, ibid., for “five years”.
3. Subs. by Act 40 of 1989, s. 3, for “one year”.
4. Subs. by Act 36 of 1973, s. 5, for “two years”.
5. Ins. by s. 5, ibid.
6. Subs. by Act 25 of 1978, s. 16, for “six months” (w.e.f. 1-7-1978).
2[135A. Preparation. If a person makes preparation to export any goods in contravention of the provisions of this Act, and from the circumstances of the case it may be reasonably inferred that if not prevented by circumstances independent of his will, he is determined to carry out his intention to commit the offence, he shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both.
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 appeals against the orders of the court has expired without any appeal having been preferred, or such an appe-
al, having been preferred, has been disposed of.
(3) The exprenses of any publication under sub-section (1) shall be recoverable from the convicted person as if it were were a fine im-
posed by the court.]
136.Offences by officers of customs.
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 duty of custom 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 3[three year], 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
———————————————————————-
1 Renumbered, Subs. & ins. by Act 36 of 1973, S. S.
2 Ins. by S. 6, ibid.
3 Subs. by S. 7, ibid.
4 Subs. by Act 25 of 1978, S. 16 (w.e.f. 1.7. 1978).
5 Subs. by Act 40 of 1989, S. 3.———————————————————————-
1231.
(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.
137.Cognizance of offences.
137. Cognizance of offences. (1) No court shall take cognizance of any offence under section 132, section 133. section 134 or section
135, except with the previous sanction of the 1[Commissiner of Custo-
ms.]
(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 2[Assistant Commiss-
iner of Customs,] except with the previous sanction of the
Central Government;
(b)Where the offence is alleged to have been committed by, an of customs lower in rank than 2[Assistant Commissiner Customs], except with the previous sanction of the 1[Commissiner of
Customs.]
138.Offences to be tried summarily.
138.Offences to be tried summarily. Notwithstanding anything contained in the 3Code of Criminal procedure, 1898 (5 of 1898), an offence under this Chapter other than an offence punishable 4[un-
der clause (i) of sub-section (1) of section 135 or under sub-section
(2) of that section ] may be tried summarily by a magistrate.
5[138A. (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 Preponderance of probability
138B.Relevancy of statements under certain circumstances. (1) A
statement made and signed by a person before any gazetted officer of customs during the course of any inquiry or proceeding under this Act shall be relevant, for the purpose of proving, in any prosecution for an offence under this Act, the truth of the facts which it contains,-
(a)when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of the case, the court considers unreasonable; or
(b) when the person who made the statement is examined as a witness in the case before the court and the court is of opinion that, having regard to the circumstances of the case, the statement should be admitted in evidence in the interests of justice.
(2)The provisions of sub-section (1) shall, so far as may be, apply, in relation to any proceeding under this Act, other than a proceeding before a court, as they apply in relation to a proceeding court.]
6[138C.Admissibility of micro films,fascimile copies of documents and computer printouts as documents and as evidence. (1)
Notwithstanding anything contained in any other 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
1. Subs. by Act 22 of 1995, s. 50, for "Collector of Customs".
2. Subs. by s. 50, ibid for "Assistant Collector of Customs".
3. See now the Code of Crimianl Procedure, 1973 (Act 2 of 1974).
4. Subs. by Act 36 of 1973, s. 8, for "under clause (i) of section 135".
5. Ss. 138A and 138B ins. by s. 9, ibid.
6. Ins. by Act 29 of 1988, s. 6(w.e.f. 1-7-1988).
(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 com-
puter; and references in this section to a computer shall be construed accordingly.
(4) In any proceedings under this Act and the rules made there-
under 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.]
139.Presumption as to documents in certain cases.
1[139. Presumption as to documents in certain cases. Where any do-
cument-
(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 persons handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested;
(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence;
(c) in a case falling under clause (i) also presume, unless the contrary is proved, the truth of the contents of such document.]
2[Explanation.--For the purposes of this section, "document"
includes inventories, photographs and lists certified by a Magistrate sub-section (1C) of section 110.]
1. Subs. by Act 36 of 1973, s. 10, s. 139.2. Ins. by Act 80 of 1985, S 11.1232.140.
Offences by companies.
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
1233.
(b) ” director”,in relation to a firm, means a partner in the firm.
140A
Application of section 562 of the Code of Criminal Procedure, 1898, andof the the Probation of Offenders Act, 1958. 1[140A. Application of section 562.of the Code of CriminalProcedure, 1898.
CHAPTER XVIIMISCELLANEOUS

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.
142.Recovery of sums due to Government.
142.Recovery of sums due to Government. (1) 3[ Where any sum pay-
able by any person] under this Act 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 4[Assistant Commissiner 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 4[Assistant Commis-
siner of Customs or such other officer of customs ; or
5[(c) if the amount cannot be recovered FROM such person in the manner provided in clause (a) or clause (b)-
(i) the [Assistant Commissiner 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 b-
usiness and the said Collector on receipt of such certificate shall proceed to recover FROM the said person the amount specified thereunder as if it were an arrear of land revenue.
(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
———————————————————————-
1 Ins. by Act 36 of 1973 S. 11.2 See now the relevant provision of the Code of Criminal Procedure,
1973 (Act 2 of 1974).
3 Subs. by Act 22 of 1995, s. 66 for certain words.
4 Subs. by s. 50, ibid., for “Assistant Collector of Customs”.
5. Subs. by s. 66 ibid., for cl. (c).
———————————————————————-
1234.prejudice to any other mode of recovery, be recovered in accordance with the provisions of that sub-section.
143.Power to allow import or export on execution of bonds in certaincases.
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 1[Assistant Co-
mmissioner of Customs] is satisfied that HAVING regard to the circumsta-
nces of the case, such thing cannot be done before such import, export or clearance without detriment to that person,the 1[Assistant Collector 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 1[Assistant Collector 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
1[Assistant Commissioner of Customs] shall cancel the bond as discharge 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 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 Collector 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.
2["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 1[Assistant
Commissioner of Customs] may, not withstanding 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 1[Assistant Commissionr of
Customs] may on sufficient cause being shown, allow, or for, any other sufficient reason, the importer shall, notwithsatn-
ding 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
1[Assistant 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).
144.Power to take samples.
144.Power to take samples. (1) The proper officer may, on the entry or clearance of goods or at any time while. such goods are being passed through 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 deposed of in such manner as the 3[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
—————————————————————
1.Subs. by Act 22 of 1995,s.50 for “Assistant Collector of Customs”.
2. Ins. by Act 25 of 1978, S. 17 (w.e.f.1-7-1978).
3. Subs. by Act 22 of 1995, s. 50 of “Collector of Customs”.
———————————————————————-
1235.
of any test or examination thereof, if such duty amounts to five rupees or more.
145.Owner, etc., to perform operations incidental to compliance withcustoms law.
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.
146.Custom house agents to be licensed.
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.
1[146A. Appearance by authorised representative. (1) Any person who is entitled or required to appear before officer of customs or the Appellate Tribunal in connection with any proceedings under this
Act, otherwise than when required under section 108 to attend personally for examination on oath or affirmation, may, subject to the other provisions of this section, appear by an authorised representative.
(2) For the purposes of this section, "authorised representative" means a person authorised by the person referred to in sub-section (1) to appear on his behalf, being-
(a) his relative or regular employee; or
(b) a 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 pro-
ceeding 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 1[Commissioner of Customs] or the competent authority under the Central Excises and Salt Act, 1944 (1 of 1944),or the Gold
(control) Act, 1968 (45 of 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 miscon-
duct 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.
147.Liability of principal and agent.
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.
———————————————————————-
1. Subs. by Act 22 of 1995, s.50 for “Collector of Customs”.
———————————————————————-
1236.(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 1[Assistant Commiss-
ioner of Customs] the same cannot be recovered FROM the owner, impor-
ter or exporter.
148.Liability of agent appointed by the person in charge of a conveyance.
148. Liability of agent appointed by the person in charge of a conveyance. (1) Where this Act requires anything to be done by the person in charge of a conveyance, it may be done on his behalf by his agent.
(2) An agent appointed by the person in charge of a conveyance and any person who represents himself to any officer of customs as an agent of any such person in charge, and is accepted as such by that officer, shall be liable for the fulfilment in respect of the matter in question of all obligations imposed on such person in charge by or under this Act or any law for the time being in force, and to penalties and confiscations which may be incurred in respect of that matter.
149.Amendment of documents.
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 customs 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 im-
ported goods have been cleared for home consumption or deposited in a warehouse, or the export goods have been exported, except on the basis of documentary evidence which was in existence at the time the goods were cleared, deposited or exported, as the case may be.
150.
Procedure for sale of goods and application of saleproceeds.
150. Procedure for sale of goods and application of saleproceeds.
(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,
———————————————————————-
1. Subs. by Act 22 of 1995, s.50 for “Assistant Collector of Customs”.
———————————————————————-
1237.(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.
151.Certain officers required to assist officers of customs.
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 Government or a local authority as are specified by the Central Govern-
ment in this behalf by notification in the Official Gazette.
151A
Instructions to officers of customs. 1["151A. Instructions to officers of customs. The Board may, ifit considers it necessary or expedient so to do for the purpose ofuniformity in the classi
152.Delegation of powers.
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 2[a 3[Chief Commissioner of Customs]
or a 4[Commissioner of Customs] empowered in this behalf by the Central Government;
(b) any power exercisable by a 4[Cmmissioner of Customs]
under this Act may be exercisable also by a 5[Deputy Commis-
sioner of Customs] or an 6[Assistant Commissioner of Customs]
empowered in this behalf by the Central Government;
(c) any power exercisable by a Deputy Collector of Customs under this Act may be exercisable also by an Assistant
Collector of Customs empowered in this behalf by the Central
Government;
———————————————————————-
1. Subs. by Act 22 of 1995, s. 52, “Collector of Customs (Appeals)”.
2. Subs. by Act 29 of 1988, s. 7 for “a Collector of Customs” (w.
e.f. 1-7-1988).
3. Subs. by Act 22 of 1995, s. 50, for “Principal Collector of Cus-
toms”.
4. Subs. by s. 50, ibid for “Collector of Customs”.
5. Subs. by s. 50, ibid for “Deputy Collector of Customs”.
6. Subs. by s. 50, ibid for “Assistant Collector of Customs”.
———————————————————————-
1238.(d) any power exercisable by an 1[Assistant Commissiner of
Customs] under this Act may be exercisable also by a gazetted officer of customs empowered in this behalf by the Board.
153.Service of order, decision, etc.
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.
154.Correction of clerical errors, etc.
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.
154A
Rounding off of duty, etc. 2[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
155.Protection of action taken under the Act.
155.Protection of action taken under the Act. (1) No suit, prosecution or other legal proceeding 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 months previous notice in writing of the intended Proceeding and of the cause thereof, or after the expiration of three months FROM the accrual of such cause.
156.General power to make rules.
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 follow-
ing matters, namely:-
1["(a) the manner of determining the price of imported goods under sub-section (1A) of section 14;"]
———————————————————————-
1. Subs. by Act 22 of 1995, s. 50 for “Assistant Collector of Cu-
stoms”.
2. Ins. by Act 12 of 1990, S.62.———————————————————————-
1239.(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;
1 * * * * *
(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;
2["(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 provisions of this Act or the rules."]
157.General power to make regulations.
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, boat note and bill of coastal goods;
3["(aa) the 4[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;
———————————————————————
1. cl. (c) omitted by Act 26 of 1988, S.80.
2. Ins. by Act 40 of 1991, S.14 (w.e.f.20-9-1991).
3. Ins. by Act 36 of 1973, s. 12.4. cl. (aa) ins. by Act 40 of 1991, s. 14, (w.e.f. 20-9-1991)
5. Subs. by Act 22 of 1995, s. 67 for “Form”.
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1240
(c) the conditions subject to which any manufacturing process or other operations may be carried on in a warehouse under section 65.
158.Provisions with respect to rules and regulations.
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.
159.Rules and certain notifications to be laid before Parliament.
1[159.Rules and certain notifications to be laid before Parliament.
Every rule or regulation made under this Act and 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 sub-section, other than an ORDER relating to goods of strategic, secret, individual or personal nature, or 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 the notification or ORDER should not be issued or made, the rule or regulation or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, how-
ever, that any such modification or annulment shall be without prejud-
ice to the validity of anything previously done, under that rule or regulation or notification or order].
160.
Repeal and savings.
160.Repeal and savings. (1) The enactments specified in the
Schedule are hereby repealed to the extent mentioned in the fourth column thereof.
———————————————————————
1. Subs. by Act 22 of 1995, S. 68 for section 159.———————————————————————
1241.(2) In the Indian Tariff Act, 1934 (32 of 1934).
(a) for section 2, the following section shall be substituted, namely: -
“2. Duties specified in the Schedules to be levied. The rates at which duties of customs shall be levied under the
Customs Act, 1962, are specified in the First and Second
Schedules.” ;
(b) sections 5 and 6 shall stand repealed.
(3) Notwithstanding the repeal of any enactment by this section,-
(a) any notification, rule, regulation, ORDER or notice issued or any appointment or declaration made or any licence, permission or exemption granted or any assessment made, confiscation adjudged or any duty levied or any penalty or fine imposed or any forfeiture, cancellation or discharge of any bond ordered or any other thing done or any other action taken under any repealed enactment shall, so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provision of this Act ;
(b) any document referring to any enactment hereby repealed shall be construed as referring to this Act or to the corresponding provision of this Act.
(4) This Act shall apply to all goods which are subject to the control of customs at the commencement of this Act notwithstanding that the goods were imported before such commencement.
(5) Where the period prescribed for any application, appeal, revision or other proceeding under any repealed enactment had expired on or before the commencement of this Act, nothing in this Act shall be construed as enabling any such application, appeal. or revision to be made or a proceeding to be instituted under this Act by reason only of the fact that a longer period therefor is prescribed or provision is made for extension of time in suitable cases by the appropriate authority.
(6) The provisions of section 65 shall apply to goods warehoused before the commencement of this Act if the operations permissible under that section were carried on after such commencement.
(7) Any duty or penalty payable under any repealed enactment may be recovered in a manner provided under this Act but without prejudice to any action already taken for the recovery of such duty or penalty under the repealed enactment.
1242.(8) The mention of particular matters in sub-sections (4), (5),
(6) and (7)shall not be held to prejudice or affect the general application of section 6 of the General Claus-Is Act, 1897,(10 of
1897.) with regard to the effect of repeals.
(9) Nothing in this Act shall affect any law for the time being in force relating to the constitution and powers of any Port authority in a major port as defined in the Indian Ports Act, 1908.(15.of 1908).
161.Removal of difficulties.
161.Removal of difficulties. If any difficulty arises in giving effect to the provisions of this Act, particularly in relation to the transition FROM the enactments repealed by this Act to the provisions of this Act, the Central Government may by general or special order, do anything not inconsistent with such provisions which appears to be necessary or expedient for the purpose of removing the difficulty.
SCHE
(See section 160)
THE SCHEDULE
(See section 160)
REPEALS
———————————————————————
Year No. Short title Extent of repeal
———————————————————————
1 2 3 4.———————————————————————
1878 8 The Sea Customs Act .. The whole
1896 8 The Inland Bonded Warehouses Act
The whole
1924 19 The Land Customs Act The whole
1934 22 The Aircraft Act Section 16.-

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