THE CUSTOMS ACT, 1962 (52 of 1962)
CHAPTER XIV
Confiscation
of goods and conveyances and imposition of penalties
SECTION 111. Confiscation of improperly imported goods,
etc. The following goods brought from a
place outside India shall be liable to confiscation:
(a) any
goods imported by sea or air which are unloaded or attempted to be unloaded at
any place other than a customs port or customs airport appointed under clause
(a) of section 7 for the unloading of such goods;
(b) any goods imported
by land or inland water through any route other than a route specified in a
notification issued under clause (c) of section 7 for the import of such goods;
(c) any
dutiable or prohibited goods brought into any bay, gulf, creek or tidal river
for the purpose of being landed at a place other than a customs port;
(d) any
goods which are imported or attempted to be imported or are brought within the
Indian customs waters for the purpose of being imported, contrary to any
prohibition imposed by or under this Act or any other law for the time being in
force;
(e) any dutiable or
prohibited goods found concealed in any manner in any conveyance;
(f) any dutiable or
prohibited goods required to be mentioned under the regulations in an import
manifest or import report which are not so mentioned;
(g) any
dutiable or prohibited goods which are unloaded from a conveyance in
contravention of the provisions of section 32, other than goods inadvertently
unloaded but included in the record kept under sub-section (2) of section 45;
(h) any dutiable or
prohibited goods unloaded or attempted to be unloaded in contravention of the
provisions of section 33 or section 34;
(i) any dutiable or prohibited goods found concealed in any manner
in any package either before or after the unloading thereof;
(j) any dutiable or
prohibited goods removed or attempted to be removed from a customs area or a
warehouse without the permission of the proper officer or contrary to the terms
of such permission;
(k) any
dutiable or prohibited goods imported by land in respect of which the order
permitting clearance of the goods required to be produced under section 109 is
not produced or which do not correspond in any material particular with the
specification contained therein;
(l) any dutiable or
prohibited goods which are not included or are in excess of those included in
the entry made under this Act, or in the case of baggage in the declaration
made under section 77;
(m) any
goods which do not correspond in respect of value or in any other particular
with the entry made under this Act or in the case of baggage with the
declaration made under section 77 in respect thereof, or in the case of goods
under transhipment, with the declaration for transhipment referred to in the proviso to sub-section (1) of section 54;
(n) any
dutiable or prohibited goods transited with or without transhipment or attempted to be so transited in
contravention of the provisions of Chapter VIII;
(o) any
goods exempted, subject to any condition, from duty or any prohibition in
respect of the import thereof under this Act or any other law for the time
being in force, in respect of which the condition is not observed unless the
non-observance of the condition was sanctioned by the proper officer;
(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.
SECTION 112. Penalty for
improper importation of goods, etc. Any person, -
(a) who, in relation to any goods, does or omits to do any act
which act or omission would render such goods liable to confiscation under
section 111, or abets the doing or omission of such an act, or
(b) who acquires possession of or is in any way concerned in
carrying, removing, depositing, harbouring, keeping,
concealing, selling or purchasing, or in any other manner dealing with any
goods which he knows or has reason to believe are liable to confiscation under
section 111, shall be liable, -
(i) in
the case of goods in respect of which any prohibition is in force under this
Act or any other law for the time being in force, to a penalty not exceeding
the value of the goods or five thousand rupees, whichever is the greater;
(ii) in the case of dutiable goods, other than prohibited goods, to
a penalty not exceeding the duty sought to be evaded on such goods or five
thousand rupees, whichever is the greater;
(iii) in the case of goods in respect of which the value stated in
the entry made under this Act or in the case of baggage, in the declaration
made under section 77 (in either case hereafter in this section referred to as
the declared value) is higher than the value thereof, to a penalty not exceeding
the difference between the declared value and the value thereof or five
thousand rupees, whichever is the greater;
(iv) in the case of goods falling both under clauses (i) and (iii), to a penalty not exceeding the value of the
goods or the difference between the declared value and the value thereof or
five thousand rupees, whichever is the highest;
(v) in the
case of goods falling both under clauses (ii) and (iii), to a penalty not
exceeding the duty sought to be evaded on such goods or the difference between
the declared value and the value thereof or five thousand rupees, whichever is
the highest.
SECTION 113. Confiscation of goods
attempted to be improperly exported, etc.
The following export goods shall be liable to confiscation:-
(a) any goods
attempted to be exported by sea or air from any place other than a customs port
or a customs airport appointed for the loading of such goods;
(b) any goods
attempted to be exported by land or inland water through any route other than a
route specified in a notification issued under clause (c) of section 7 for the
export of such goods;
(c) any
goods brought near the land frontier or the coast of India or near any bay,
gulf, creek or tidal river for the purpose of being exported from a place other
than a land customs station or a customs port appointed for the loading of such
goods;
(d) any
goods attempted to be exported or brought within the limits of any customs area
for the purpose of being exported, contrary to any prohibition imposed by or
under this Act or any other law for the time being in force;
(e) any goods found
concealed in a package which is brought within the limits of a customs area for
the purpose of exportation;
(f) any goods which
are loaded or attempted to be loaded in contravention of the provisions of
section 33 or section 34;
(g) any
goods loaded or attempted to be loaded on any conveyance, or water-borne, or
attempted to be water-borne for being loaded on any vessel, the eventual
destination of which is a place outside India, without the permission of the
proper officer;
(h) any goods which
are not included or are in excess of those included in the entry made under
this Act, or in the case of baggage in the declaration made under section 77;
(i) any goods entered
for exportation which do not correspond in respect of value or in any material
particular with the entry made under this Act or in the case of baggage with
the declaration made under section 77;
(ii) any goods entered for exportation
under claim for drawback which do not correspond in any material particular
with any information furnished by the exporter or manufacturer under this Act
in relation to the fixation of rate of drawback under section 75;
(j) any goods on which
import duty has not been paid and which are entered for exportation under a
claim for drawback under section 74;
(k) any
goods cleared for exportation which are not loaded for exportation on account
of any willful act, negligence or default of the exporter, his agent or
employee, or which after having been loaded for exportation are unloaded
without the permission of the proper officer;
(l) any specified
goods in relation to which any provisions of Chapter IVB or of any rule made
under this Act for carrying out the purposes of that Chapter have been
contravened.
SECTION 114. Penalty for
attempt to export goods improperly, etc.
Any person who, in relation to any goods, does or omits to do any act which act
or omission would render such goods liable to confiscation under section 113,
or abets the doing or omission of such an act, shall be liable, -
(i) in the case of goods in respect of which any prohibition is
in force under this Act or any other law for the time being in force, to a
penalty not exceeding three times the value of the goods as declared by the
exporter or the value as determined under this Act, whichever is the greater;
(ii) in the case of
dutiable goods, other than prohibited goods, to a penalty not exceeding the
duty sought to be evaded or five thousand rupees, whichever is the greater;
(iii) in
the case of any other goods, to a penalty not exceeding the value of the goods,
as declared by the exporter or the value as determined under this Act,
whichever is the greater.
SECTION 114A. Penalty for short-levy
or non-levy of duty in certain cases. - Where the duty has not been levied or has been
short-levied or the interest has not been charged or paid or has been part paid
or the duty or interest has been erroneously refunded by reason of collusion or
any wilful mis-statement or suppression of facts, the person who is liable
to pay the duty or interest, as the case may be, as determined under
sub-section (8) of section 28 shall also be liable to pay a penalty equal to
the duty or interest so determined :
Provided that where such duty or interest, as the case may be, as
determined under sub-section (8) of section 28, and the interest payable
thereon under section 28AA, is paid within thirty days from the date of the
communication of the order of the proper officer determining such duty, the
amount of penalty liable to be paid by such person under this section shall be
twenty-five per cent of the duty or interest, as the case may be, so determined :
Provided further that the benefit of reduced penalty under the first
proviso shall be available subject to the condition that the amount of penalty
so determined has also been paid within the period of thirty days referred to
in that proviso :
Provided also that where the duty or interest determined to be
payable is reduced or increased by the Commissioner (Appeals), the Appellate
Tribunal or, as the case may be, the court, then, for the purposes of this
section, the duty or interest as reduced or increased, as the case may be,
shall be taken into account :
Provided also that in case where the duty or interest determined to
be payable is increased by the Commissioner (Appeals), the Appellate Tribunal
or, as the case may be, the court, then, the benefit of reduced penalty under
the first proviso shall be available if the amount of the duty or the interest
so increased, along with the interest payable thereon under section 28AA, and
twenty-five percent of the consequential increase in penalty have also been
paid within thirty days of the communication of the order by which such
increase in the duty or interest takes effect :
Provided also that where any penalty has been levied under this
section, no penalty shall be levied under section 112 or section 114.
Explanation. -
For the removal of doubts, it is hereby declared that
(i) the provisions of this section shall also apply to cases in
which the order determining the duty or interest under sub-section (8) of
section 28 relates to notices issued prior to the date on which the Finance
Act, 2000 receives the assent of the President;
(ii) any amount
paid to the credit of the Central Government prior to the date of communication
of the order referred to in the first proviso or the fourth proviso shall be
adjusted against the total amount due from such person.
SECTION 114AA. Penalty for use of false
and incorrect material. - If a person knowingly or
intentionally makes, signs or uses, or causes to be made, signed or used, any
declaration, statement or document which is false or incorrect in any material
particular, in the transaction of any business for the purposes of this Act,
shall be liable to a penalty not exceeding five times the value of goods.
SECTION 115. Confiscation
of conveyances. (1) The following conveyances shall be liable to confiscation
:-
(a) any vessel which is or has been within the Indian customs
waters, any aircraft which is or has been in India, or any vehicle which is or
has been in a customs area, while constructed, adapted, altered or fitted in
any manner for the purpose of concealing goods;
(b) any conveyance from which the whole or any part of the goods
is thrown overboard, staved or destroyed so as to prevent seizure by an officer
of customs;
(c) any conveyance which having been required to stop or land under
section 106 fails to do so, except for good and sufficient cause;
(d) any conveyance from which any warehoused goods cleared for
exportation, or any other goods cleared for exportation under a claim for
drawback, are unloaded, without the permission of the proper officer;
(e) any conveyance
carrying imported goods which has entered India and is afterwards found with
the whole or substantial portion of such goods missing, unless the master of
the vessel or aircraft is able to account for the loss of, or deficiency in,
the goods.
(2) Any conveyance or
animal used as a means of transport in the smuggling of any goods or in the
carriage of any smuggled goods shall be liable to confiscation, unless the
owner of the conveyance or animal proves that it was so used without the
knowledge or connivance of the owner himself, his agent, if any, and the person
in charge of the conveyance or animal:
Provided that
where any such conveyance is used for the carriage of goods or passengers for
hire, the owner of any conveyance shall be given an option to pay in lieu of
the confiscation of the conveyance a fine not exceeding the market price of the
goods which are sought to be smuggled or the smuggled goods, as the case may
be.
Explanation. - In this section, market price means market price at the
date when the goods are seized.
SECTION 116. Penalty for not accounting
for goods. If
any goods loaded in a conveyance for importation into India, or any goods transhipped under the provisions of this Act or coastal
goods carried in a conveyance, are not unloaded at their place of destination
in India, or if the quantity unloaded is short of the quantity to be unloaded
at that destination, and if the failure to unload or the deficiency is not
accounted for to the satisfaction of the Assistant Commissioner of Customs or
Deputy Commissioner of Customs, the person-in-charge of the conveyance shall be
liable, -
(a) in the case of goods loaded in a conveyance for importation
into India or goods transhipped under the provisions
of this Act, to a penalty not exceeding twice the amount of duty that would
have been chargeable on the goods not unloaded or the deficient goods, as the
case may be, had such goods been imported;
(b) in the
case of coastal goods, to a penalty not exceeding twice the amount of export
duty that would have been chargeable on the goods not unloaded or the deficient
goods, as the case may be, had such goods been exported.
SECTION 117. Penalties for
contravention, etc., not expressly mentioned. Any person who contravenes any provision of this Act or
abets any such contravention or who fails to comply with any provision of this Act with which it was his duty to comply, where no express
penalty is elsewhere provided for such contravention or failure, shall be
liable to a penalty not exceeding one lakh
rupees.
SECTION 118. Confiscation
of packages and their contents. (a) Where any goods
imported in a package are liable to confiscation, the package and any other
goods imported in that package shall also be liable to confiscation.
(b) Where any goods are brought in a package within the limits
of a customs area for the purpose of exportation and are liable to confiscation,
the package and any other goods contained therein shall also be liable to
confiscation.
SECTION 119. Confiscation of goods
used for concealing smuggled goods.
Any goods used for concealing smuggled goods shall also be liable to
confiscation.
Explanation. -
In this section, goods does not include a conveyance used as a means of
transport.
SECTION 120. Confiscation of
smuggled goods notwithstanding any change in form, etc. (1) Smuggled goods may be confiscated
notwithstanding any change in their form.
(2) Where smuggled goods are mixed with other goods in such
manner that the smuggled goods cannot be separated from such other goods, the
whole of the goods shall be liable to confiscation :
Provided that
where the owner of such goods proves that he had no knowledge or reason to
believe that they included any smuggled goods, only such part of the goods the
value of which is equal to the value of the smuggled goods shall be liable to
confiscation.
SECTION 121. Confiscation
of sale-proceeds of smuggled goods. Where any smuggled goods are sold by a person having
knowledge or reason to believe that the goods are smuggled goods, the
sale-proceeds thereof shall be liable to confiscation.
SECTION 122. Adjudication of confiscations
and penalties.
In every case under this Chapter in which anything is liable to confiscation or
any person is liable to a penalty, such confiscation or penalty may be
adjudged, -
(a) without
limit, by a Commissioner of Customs or a Joint Commissioner of Customs;
(b) where the value of
the goods liable to confiscation does not exceed two lakh
rupees, by an Assistant Commissioner of Customs or Deputy Commissioner of
Customs;
(c) where the
value of the goods liable to confiscation does not exceed, ten thousand rupees,
by a Gazetted Officer
of Customs lower in rank than an Assistant Commissioner of Customs or Deputy
Commissioner of Customs.
SECTION 122A. Adjudication Procedure.
(1) The adjudicating authority shall, in any proceeding under this Chapter or
any other provision of this Act, give an opportunity of being heard to a party
in a proceeding, if the party so desires.
(2) The adjudicating authority may, if sufficient cause is shown
at any stage of proceeding referred to in sub-section (1), grant time, from
time to time, to the parties or any of them and adjourn the hearing for reasons
to be recorded in writing:
Provided that no such adjournment shall
be granted more than three times to a party during the proceeding.
SECTION 123. Burden of proof in certain cases.
(1) Where any goods to
which this section applies are seized under this Act in the reasonable belief
that they are smuggled goods, the burden of proving that they are not smuggled
goods shall be
(a) in a case where
such seizure is made from the possession of any person, -
(i) on the person from whose
possession the goods were seized; and
(ii)
if any person, other than the person from whose possession the goods were
seized, claims to be the owner thereof, also on such other person;
(b) in any
other case, on the person, if any, who claims to be the owner of the goods so
seized.
(2) This section
shall apply to gold, and manufactures thereof, watches, and any other class of
goods which the Central Government may by notification in the Official Gazette
specify.
SECTION 124. Issue of show cause
notice before 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 with the prior approval of the
officer of Customs not below the rank of an Assistant Commissioner of Customs,
informing him of the grounds on which it is proposed to confiscate the goods or
to impose a penalty;
(b) is given an opportunity of making a representation in
writing within such reasonable time as may be specified in the notice against
the grounds of confiscation or imposition of penalty mentioned therein; and
(c) is given a reasonable opportunity of being heard in the matter
:
Provided that the notice referred to in clause (a) and the
representation referred to in clause (b) may, at the request of the person
concerned be oral.
SECTION 125. Option to pay fine in lieu of
confiscation. (1) Whenever confiscation of any
goods is authorised by
this Act, the officer adjudging it may, in the case of any goods, the
importation or exportation whereof is prohibited under this Act or under any
other law for the time being in force, and shall, in the case of any other
goods, give to the owner of the goods or, where such owner is not known, the
person from whose possession or custody such goods have been seized, an option
to pay in lieu of confiscation such fine as the said officer thinks fit :
Provided that,
without prejudice to the provisions of the proviso to sub-section (2) of
section 115, such fine shall not exceed the market price of the goods
confiscated, less in the case of imported goods the duty chargeable thereon.
(2) Where any fine in
lieu of confiscation of goods is imposed under sub-section (1), the owner of
such goods or the person referred to in sub-section (1), shall, in addition, be
liable to any duty and charges payable in respect of such goods.
SECTION 126. On 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.
SECTION 127. Award of confiscation or penalty
by customs officers not to interfere with other punishments.
The award of any confiscation or penalty under this Act by an officer of
customs shall not prevent the infliction of any punishment to which the person
affected thereby is liable under the provisions of Chapter XVI of this Act or
under any other law.
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