Punishment for Customs offences - CBEC's Customs Manual 2023 - Customs

11. Punishment for Customs offences: 11.1 Section 135(1) of the Customs Act, 1962 provides for imprisonment for a maximum term of 7 years and with fine to any person who is, in the context of any goods which he knows or has reason to believe are liable to confiscation under Sections 111 or 113 of the said Act: Involved, in relation to the goods, or Anyway knowingly concerned in mis-declaration of value, or In any fraudulent evasion or attempt at evasion of any duty chargeable thereon or of any prohibition for the time being imposed under the said Act or any other law for the time being in force with respect to such goods, or 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, or Attempts to export any goods, or Fraudulently avails of or attempts to avail of drawback or any exemption from duty provided under the said Act in connection with export of goods. 11.2 Section 135 read with circular provides the following punishments to the person held liable for offences mentioned therein: I. Imprisonment for a term not exceeding 7 years (and in any case ordinarily not less than 1 year) in the case of an offence relating to: a) Any goods the market price of which exceeds Rs.1 crore; or b) The evasion or attempted evasion of duty exceeding Rs.50 lakhs; or c) Such categories of prohibited goods as the Central Government may, by notification, specify; or d) Fraudulently availing of or attempting to avail of drawback or any exemption from duty referred to above, if the amount of drawback or exemption from duty exceeds Rs.50 lakhs. II. In any other case, with imprisonment for a term not exceeding 3 years or with fine, or with both. 11.3 Section 135(2) of the Customs Act, 1962 provides that, if any person convicted of an offence under Section 135(1) or under Section 136(1) (which applies to Custom Officers) 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 7 years and with fine. 11.4 The offences punishable with imprisonment for a term of less than 3 years or only fine are as follows: a) Section 132 of the Customs Act 1962: If a person 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, he shall be punishable with imprisonment for a term which may extend to 2 years, or with fine, or with both. b) Section 133 of the Customs Act 1962: 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 extend to 2 years, or with fine, or with both. c) Section 134 of the Customs Act 1962: If any person 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 of the said Act, or resists or refuses to allow suitable action being taken on the advice and under the supervision of a registered medical practitioner for bringing out goods liable to confiscation secreted inside his body, he shall be punishable with imprisonment for a term which may extend to 6 months, or with fine, or with both. d) Section 135 of the Customs Act 1962: In all offences under the Customs Act other than those mentioned under non-bailable or cognizable offences above, the punishment for imprisonment may extend to a term of three years, or with fine, or with both. However, under Section 135(1) (i) of the said Act, in the absence of special and adequate reasons to the contrary to be recorded in the judgment or the court, such imprisonment shall not be for less than 1 year. e) Section 135A of the Customs Act 1962: 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 reasonable 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. f) Section 135AA of the Customs Act, 1962: if a person publishes any information, that is furnished to customs by an exporter or importer under this Act, relating to the value or classification or quantity of goods entered for export from India, or import into India, alongwith the identity of the persons involved or in a manner that leads to disclosure of such identity, unless required so to do under any law or for the time being in force or by specific authorisation of such exporter or importer, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to fifty thousand rupees or both. Nothing contained in this section shall apply to (a) any publication made by or on behalf of the Central Government (b) data sourced from any publication made by or on behalf of the Central Government for analysis of trends in India s international trade and dissemination thereof.