Customs CBIC




Dated: 16.02.23




The Indian Customs Act, 1962 has very elaborate provisions related to Confiscation of Goods and Conveyances and accordingly the penalties are imposed. The customs authorities cannot impose arbitrary penalties in contravention of the Indian customs Act, 1962. Please refer to the detailed provisions for the same as enshrined in the said act as outlined below.

Arrangement of applicable sections:

Section-111. Confiscation of improperly imported goods, etc.

Section-112. Penalty for improper importation of goods, etc.

Section-113. Confiscation of goods attempted to be improperly exported, etc.

Section-114. Penalty for attempt to export goods improperly, etc.

Section-114A. Penalty for short-levy or non-levy of duty in certain cases.

Section-114AA. Penalty for use of false and incorrect material.

Section-115. Confiscation of conveyances.

Section-116. Penalty for not accounting for goods.

Section-117. Penalties for contravention, etc., not expressly mentioned.

Section-118. Confiscation of packages and their contents.

Section-119. Confiscation of goods used for concealing smuggled goods.

Section-120. Confiscation of smuggled goods notwithstanding any change in form, etc.

Section-121. Confiscation of sale-proceeds of smuggled goods.

Section-122. Adjudication of confiscations and penalties.

Section-122A. Adjudication Procedure.

Section-123. Burden of proof in certain cases.

Section-124. Issue of show cause notice before confiscation of goods, etc.

Section-125. Option to pay fine in lieu of confiscation.

Section-126. On confiscation, property to vest in Central Government.

Section-127. Award of confiscation or penalty by customs officers not to interfere with other punishments.

In addition to the above it is also worth noting the provisions as enshrined under section 104 of the Indian Customs act, 1962 which reads as “[(1) If an officer of customs empowered in this behalf by general or special order of the 2 [Principal Commissioner of Customs or Commissioner of Customs] has reason to believe that any person in India or within the Indian customs waters has committed an offence punishable under section 132 or section 133 or section 135 or section 135A or section 136, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest.

Section-104(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)

Section-132: False declaration, false documents, etc

Sectio-133: Obstruction of officer of customs

Section-135: Evasion of duty or prohibitions

Section-135A: Preparation

Section-136: Offences by officers of custom

Section-105: Power to search premises read with CrPC section 165(5)

Section 165 CrPC: (1) Whenever an officer in charge of a police station or a police officer making an investigation has reasonable grounds for believing that anything necessary for the purposes of an investigation into any offence which he is authorised to investigate may be found in any place within the limits of the police station of which he is in charge, or to which he is attached, and that such thing cannot in his opinion be otherwise obtained without undue delay, such officer may, after recording in writing the grounds of his belief and specifying in such writing, so far as possible, the thing for which search is to be made, search, or cause search to be made, for such thing in any place within the limits of such station.

(2) A police officer proceeding under sub-section (1), shall, if practicable, conduct the search in person.

(3) If he is unable to conduct the search in person, and there is no other person competent to make the search present at the time, he may, after recording in writing his reasons for so doing, require any officer subordinate to him to make the search, and he shall deliver to such subordinate officer an order in writing, specifying the place to be searched, and so far as possible, the thing for which search is to be made; and such subordinate officer may thereupon search for such thing in such place.

(4) The provisions of this Code as to search-warrants and the general provisions as to searches contained in section 100 shall, so far as may be, apply to a search made under this section.

(5) Copies of any record made under sub-section (1) or sub-section (3) shall forthwith be sent to the nearest Magistrate empowered to take cognizance of the offence, and the owner or occupier of the place searched shall, on application, be furnished, free of cost, with a copy of the same by the Magistrate.

Source: Central Board of Indirect Taxes & Customs

Download Below:

  1. Indian Customs Act 1962

  2. CRPC



In case you still face any issues related to EXIM Policies, Customs procedures, Indirect Tax related compliance procedures and Indirect Tax and Litigation matters then please feel free to get in touch with us at the below given email IDs.

We are also a registered entity with the Indian Railways for carrying bulk freight on the IR network. Our organization code is SJEX.

Come and explore the new way of doing business with us!

Connect with us

@ Team S.J. EXIM SERVICES, New Delhi

CP: Mr. Ravi Jha/+91-9999005379

Web: I



 “Indirect Tax & Litigations Advisory”


NOTE: All Inquiries are solicited via email only.
The views expressed in the update are strictly personal, based on our understanding of the underlying law. We are not responsible for any injury, loss or cost arising to any person who refers this update and acts or refrains from any act accordingly. We would suggest that a detailed legal advice must be sought before relying on this update.


#CBIC #imports #exports #indirecttax #IndirectTaxIndia #grantthornton #ernstandyoung #pwc #kpmg #kpmgtax #govtofindia #cex #customs #IndianCustoms #IndianCustomsatwork #delloite #customscompliance #customsclearance #legal #legalupdates #litigations #customslitigation #legalnews