Customs Act.doc

8/14/2019 Customs Act.doc

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INDIAN BARE ACTSCUSTOMS ACT, 1962

[Act No. 52 of Year 1962 dated 13th. December, 1962]

An Act to consolidate and amend the law relatin to c!stoms."e it enacted b# $arliament in the %hirteenth Year of the &e'!blic of (ndia as follows) *

Chapter Sections Title( 1*2 $&+(-(NA&Y

(( 3*6 //(0+& / 0%-

((( *14 A$$(N%-+N% / 0%- $&%, A(&$&%, A&+(N7 %A%(N, +%0.

(8 11 $&("(%(N N (-$&%A%(N AND +$&%A%(N / 7D

(8*A 11A*117D+%+0%(N / (+7AY (-$&%+D 7D AND $&+8+N%(N / %+D($A %+&+/

(8*" 11*11- $&+8+N%(N & D+%+0%(N / (+7A +$&% / 7D

(8*0 11N $+& % ++-$% /&- %+ $&8((N / 0A$%+& (8*A AND (8*"

8 A 2:0*2:D(ND(0A%(N7 A-N% / D%Y (N $&(0+ / 7D, +%0., /& $&$+ / &+*/ND

8 " 2:+*2:- AD8AN0+ &(N7

8( 29*;3$&8((N &+A%(N7 % 0N8+YAN0+ 0A&&Y(N7 (-$&%+D & +$&%+D7D

8(( ;;*51 0+A&AN0+ / (-$&%+D 7D AND +$&% 7D

8((( 52*56 7D (N %&AN(%

( 5*3 A&+(N7

;*5 D&A"A0 or A''ellate %rib!nal

=1A> Caircra)tC has the same meanin as in the Aircraft Act, 193; =22 of 193;>

=1"> CAppellate Tri.+nalC means the 0!stoms, +?cise and 7old =0ontrol> A''ellate %rib!nalconstit!ted !nder section 129]

=2> Cassess(entC incl!des 'ro@isional assessment, reassessment and an# order of assessmentin which the d!t# assessed is nil

=3> C.aaeC incl!des !naccom'anied baae b!t does not incl!de motor @ehicles

=;> C.ill o) entr-C means a bill of entr# referred to in section ;6

=5> C.ill o) e&portC means a bill of e?'ort referred to in section 54

=6> CBoar'C means the ;[0entral "oard of +?cise and 0!stoms constit!ted !nder the 0entral"oards of &e@en!e Act, 1963 =5; of 1963>]

=> Ccoastal oo'sC means oods, other than im'orted oods, trans'orted in a @essel from one'ort in (ndia to another

5[=A> CCo((issioner /Appeals0Cmeans a 'erson a''ointed to be a 0ommissioner of 0!stoms=A''eals> !nder s!b*section =1> of section ;]

=:> CCo((issioner o) C+sto(sC , e?ce't for the '!r'oses of 0ha'ter 8, incl!des an Additional

0ommissioner of 0!stoms

=9> Ccone-anceC incl!des a @essel, an aircraft and a @ehicle

=14> Cc+sto(s airportC means an# air'ort a''ointed !nder cla!se =a> of section to be ac!stoms air'ort

=11> Cc+sto(s areaC means the area of a c!stoms station and incl!des an# area in whichim'orted oods or e?'ort oods are ordinaril# Ee't before clearance b# c!stoms a!thorities


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=12> Cc+sto(s portC means an# 'ort a''ointed !nder cla!se =a> of section to be a c!stoms 'ort6[and incl!des a 'lace a''ointed !nder cla!se =aa> of that section to be an inland containerde'ot]

=13> Cc+sto(s stationC means an# c!stoms 'ort, c!stoms air'ort or land c!stoms station

=1;> C'+tia.le oo'sC means an# oods which are chareable to d!t# and on which d!t# has notbeen 'aid)

=15> C'+t-C means a d!t# of c!stoms le@iable !nder this Act

=16> Centr-C in relation to oods means an entr# made in a bill of entr#, shi''in bill or bill ofe?'ort and incl!des in the case of oods im'orted or to be e?'orted b# 'ost, the entr# referred toin section :2 or the entr# made !nder the re!lations made !nder section :;

=1> Ce&a(inationC, in relation to an# oods, incl!des meas!rement and weihment thereof

=1:> Ce&portC, with its rammatical @ariations and conate e?'ressions, means taEin o!t of (ndiato a 'lace o!tside (ndia

=19> Ce&port oo'sC .means an# oods which are to be taEen o!t of (ndia to a 'lace o!tside(ndia

=24> Ce&porterC, in relation to an# oods at an# time between their entr# for e?'ort and the timewhen the# are e?'orted, incl!des an# owner or an# 'erson holdin himself o!t to be the e?'orter

=21> C)orein"oin essel or aircra)tC means an# @essel or aircraft for the time bein enaedin the carriae of oods or 'asseners between an# 'ort or air'ort in (ndia and an# 'ort or air'orto!tside (ndia, whether to!chin an# intermediate 'ort or air'ort in (ndia or not, and incl!des*

=i> an# na@al @essel of a forein o@ernment taEin 'art in an# na@al e?ercises

=ii> an# @essel enaed in fishin or an# other o'erations o!tside the territorial waters of (ndia

=iii> an# @essel or aircraft 'roceedin to a 'lace o!tside (ndia for an# '!r'ose whatsoe@er

[=21A> C+n'C means the 0ons!mer elfare /!nd established !nder section 120 of the 0entral+?cises and alt Act, 19;; =1 of 19;;>]

=22> Coo'sC incl!des*

=a> @essels, aircraft and @ehicles

=b> stores

=c> baae

=d> c!rrenc# and neotiable instr!ments and

=e> an# other Eind of mo@able 'ro'ert#

=23> Ci(portC, with its rammatical @ariations and conate e?'ressions, means brinin into (ndiafrom a 'lace o!tside (ndia

=2;> Ci(port (ani)estC or Ci(port reportC means the manifest or re'ort reB!ired to be deli@ered!nder section 34


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=25> Ci(porte' oo'sC means an# oods bro!ht into (ndia from a 'lace o!tside (ndia b!t doesnot incl!de oods which ha@e been cleared for home cons!m'tion

=26> Ci(porterC, in relation to an# oods at an# time between their im'ortation and the time whenthe# are cleared for home cons!m'tion, incl!des an# owner or an# 'erson holdin himself o!t tobe the im'orter

=2> CIn'iaC incl!des the territorial waters of (ndia

=2:> CIn'ian c+sto(s 3aters C means the :[waters e?tendin into the sea !' to the limit ofconti!o!s one of (ndia !nder section 5 of the %erritorial aters, 0ontinental helf, +?cl!si@e+conomic Fone and other -aritime Fones Act, 196 =:4 of 196>] and incl!des an# ba#, !lf,harbo!r, creeE, or tidal ri@er

=29> Clan' c+sto(s stationC means an# 'lace a''ointed !nder cla!se =b> of section to be aland c!stoms station

=34> C(ar4et priceC, in relation to an# oods, means the wholesale 'rice of the oods in theordinar# co!rse of trade in (ndia

=31> Cperson"in"chareC means*

=a> in relation to a @essel, the master of the @essel

=b> in relation to an aircraft, the commander or 'ilot*in*chare of the aircraft

=c> in relation to a railwa# train, the cond!ctor, !ard or other 'erson ha@in the chief direction ofthe train

=d> in relation to an# other con@e#ance, the dri@er or other 'erson*in*chare of the con@e#ance

=32> Cprescri.e'C means 'rescribed b# re!lations made !nder this Act

=33> Cprohi.ite' oo'sC means an# oods the im'ort or e?'ort of which is s!bGect to an#'rohibition !nder this Act or an# other law for the time bein in force b!t does not incl!de an#s!ch oods in res'ect of which the conditions s!bGect to which the oods are 'ermitted to beim'orted or e?'orted ha@e been com'lied with

=3;> Cproper o))icerC, in relation to an# f!nctions to be 'erformed !nder this Act, means theofficer of c!stoms who is assined those f!nctions b# the "oard or the 5[0ommissioner of0!stoms]

=35> Cre+lationsC means the re!lations made b# the "oard !nder an# 'ro@ision of this Act

=36> Cr+lesC means the r!les made b# the 0entral 7o@ernment !nder an# 'ro@ision of this Act

=3> Cshippin .illC means a shi''in bill referred to in section 54

=3:> CstoresC means oods for !se in a @essel or aircraft and incl!des f!el and s'are 'arts andother articles of eB!i'ment, whether or not for immediate fittin

=39> Cs(+linC, in relation to an# oods, means an# act or omission which will render s!choods liable to confiscation !nder section 111 or section 113

=;4> Ctari)) al+eC, in relation to an# oods, means the tariff @al!e fi?ed in res'ect thereof !nder


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s!b*section =2> of section 1;

=;1> Cal+eC, means relation to an# oods, means the @al!e thereof determined in accordancewith the 'ro@isions of s!b*section =1> of section 1;

=;2> CehicleC means con@e#ance of an# Eind !sed on land and incl!des a railwa# @ehicle

=;3> C3areho+seC means a '!blic wareho!se a''ointed !nder section 5 or 'ri@ate ware ho!selicensed !nder section 5:

=;;> C3areho+se' oo'sC means oods de'osited in a wareho!se

=;5> C3areho+sin stationCmeans a 'lace declared as a wareho!sin station !nder section 9.

CA!TER II

OICERS O CUSTOMS

57%Classes o) o))icers o) c+sto(s%here shall be the followin classes of officers of c!stoms, namel#)

=a> 0hief 0ommissioners of 0!stoms

=b> 0ommissioner of 0!stoms

=c> 0ommissioners of 0!stoms =A''eals>

9[=cc> Hoint 0ommissioners of 0!stoms]

=d> De'!t# 0ommissioners of 0!stoms

=e> Assistant 0ommissioners of 0!stoms and

=f> s!ch other class of officers of c!stoms as ma# be a''ointed for the '!r'oses of this Act.]

58% Appoint(ent o) o))icers o) c+sto(s=1> %he 0entral 7o@ernment ma# a''oint s!ch 'ersons as it thinEs fit to be officers of c!stoms.

=2> itho!t 'reG!dice to the 'ro@isions of s!b*section =1>,the 0entral 7o@ernment ma# a!thorisethe "oard, a 0ommissioner of 0!stoms or a De'!t# or Assistant 0ommissioner of 0!stoms 9[orDe'!t# 0ommissioner of 0!stoms] to a''oint officers of c!stoms below the ranE of Assistant0ommissioner of 0!stoms 9[or De'!t# 0ommissioner of 0!stoms].]

5% !o3ers o) o))icers o) c+sto(s=1> !bGect to s!ch conditions and limitations as the "oard ma# im'ose, an officer of c!stomsma# e?ercise the 'owers and dischare the d!ties conferred or im'osed on him !nder this Act.

=2> An officer of c!stoms ma# e?ercise the 'owers and dischare the d!ties conferred or im'osed!nder this Act on an# other officer of c!stoms who is s!bordinate to him.

=3> Notwithstandin an#thin contained in this section 5[a 0ommissioner =A''eals>] shall note?ercise the 'owers and dischare the d!ties conferred or im'osed on an officer of c!stomsother than those s'ecified in 0ha'ter 8 and section 14:.

6% Entr+st(ent o) )+nctions o) Boar' an' C+sto(s O))icers on certain other o))icers%he 0entral 7o@ernment ma#, b# notification in the fficial 7aette, entr!st either conditionall# or


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!nconditionall# to an# officer of the 0entral or the tate 7o@ernment or a local a!thorit# an#f!nctions of the "oard or an# officer of c!stoms !nder this Act.

CA!TER IIIA!!OINTMENT O CUSTOMS !ORTS, AIR!ORTS, AREOUSIN: STATIONS, ETC%

;% Appoint(ent o) c+sto(s ports, airports, etc%%he 0entral 7o@ernment ma#, b# notification in the fficial 7aette, a''oint*

=a> the 'orts and air'orts which alone shall be c!stoms 'orts or c!stoms air'orts for the!nloadin of im'orted oods and the loadin of e?'ort oods or an# class of s!ch oods

6[=aa> the 'laces which alone shall be inland container de'ots for the !nloadin of im'ortedoods and the loadin of e?'ort oods or an# class of s!ch oods]

=b> the 'laces which alone shall be land c!stoms stations for the clearance of oods im'orted orto be e?'orted b# land or inland water or an# class of s!ch oods.

=c> the ro!tes b# which alone oods or an# class of oods s'ecified in the notification ma# 'ass

b# land or inland waters into or o!t of (ndia, or to or from an# land c!stoms station from or to an#land frontier

=d> the 'orts which alone shall be coastal 'orts for the carr#in on of trade in coastal oods or an#class of s!ch oods with all or an# s'ecified 'orts in (ndia.

a''ro@e 'ro'er 'laces in an# c!stoms 'ort or c!stoms air'ort or coastal 'ort for the !nloadinand loadin of oods or for an# class of oods

=b> s'ecif# the limits of an# c!stoms area.

9% !o3er to 'eclare places to .e 3areho+sin stations%he "oard ma#, b# notification in the fficial 7aette, declare 'laces to be wareho!sin stationsat which alone '!blic wareho!ses ma# be a''ointed and 'ri@ate wareho!ses ma# be licensed.

1=% Appoint(ent o) .oar'in stations%he 5[0ommissioner of 0!stoms] ma#, b# notification in the fficial 7aette, a''oint, in or nearan# c!stoms 'ort, a boardin station for the '!r'ose of boardin of, or disembarEation from,@essels b# officers of c!stoms

CA!TER I>!ROIBITIONS ON IM!ORTATION AND E?!ORTATION O :OODS

11% !o3er to prohi.it i(portation or e&portation o) oo's

=1> (f the 0entral 7o@ernment is satisfied that it is necessar# so to do for an# of the '!r'osess'ecified in s!b*section =2>, it ma#, b# notification in the fficial 7aette, 'rohibit either absol!tel#or s!bGect to s!ch conditions =to be f!lfilled before or after clearance> as ma# be s'ecified in thenotification, the im'ort or e?'ort of oods of an# s'ecified descri'tion.

=2> %he '!r'oses referred to in s!b*section =1> are the followin)*

=a> the maintenance of the sec!rit# of (ndia

=b> the maintenance of '!blic order and standards of decenc# or moralit#


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=c> the 're@ention of sm!lin

=d> the 're@ention of shortae of oods of an# descri'tion

=e> the conser@ation of forein e?chane and the safe!ardin of balance of 'a#ments

=f> the 're@ention of inG!r# to the econom# of the co!ntr# b# the !ncontrolled im'ort or e?'ort ofold or sil@er

=> the 're@ention of s!r'l!s of an# aric!lt!ral 'rod!ct or the 'rod!ct of fisheries

=h> the maintenance of standards for the classification, radin or marEetin of oods ininternational trade

=i> the establishment of an# ind!str#

=G> the 're@ention of serio!s inG!r# to domestic 'rod!ction of oods of an# descri'tion

=E> the 'rotection of h!man, animal or 'lant life or health

=1> the 'rotection of national treas!res of artistic, historic or archaeoloical @al!e

=m> the conser@ation of e?ha!stible nat!ral reso!rces

=n> the 'rotection of 'atents, trademarEs and co'#rihts

=o> the 're@ention of dece'ti@e 'ractices

='> the carr#in on of forein trade in an# oods b# the tate, or b# a cor'oration owned orcontrolled b# the tate to the e?cl!sion, com'lete or 'artial, of citiens of (ndia.

=B> the f!lfilment of obliations !nder the 0harter of the nited Nations for the maintenance of

international 'eace and sec!rit#

=r> the im'lementation of an# treat#, areement or con@ention with an# co!ntr#

=s> the com'liance of im'orted oods with an# laws which are a''licable to similar oods'rod!ced or man!fact!red in (ndia

=t> the 're@ention of dissemination of doc!ments containin an# matter which is liEel# to'reG!diciall# affect friendl# relations with an# forein tate or is deroator# to national 'restie

=!> the 're@ention of the contra@ention of an# law for the time bein in force and

=@> an# other '!r'ose cond!ci@e to the interests of the eneral '!blic.

1=CA!TER I>A @ DETECTION O I##E:A##$ IM!ORTED :OODS AND !RE>ENTION OTE DIS!OSA# TEREO

11A% De)initions(n this 0ha'ter, !nless the conte?t otherwise reB!ires,*

=a> Cilleal i(portC means the im'ort of an# oods in contra@ention of the 'ro@isions of this Act oran# other law for the time bein in force


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=b> Cinti(ate' placeC means a 'lace intimated !nder s!b*section =1>, s!b*section =2> or s!b*section =3>, as the case ma# be, of section 110

=c> Cnoti)ie' 'ateC, in relation to oods of an# descri'tion, means the date on which thenotification in relation to s!ch oods is iss!ed !nder section 11"

=d> Cnoti)ie' oo'sC means oods s'ecified in the notification iss!ed !nder section 11".

11B% !o3er o) Central :oern(ent to noti)- oo's(f, ha@in reard to the manit!de of the illeal im'ort of oods of an# class or descri'tion, the0entral 7o@ernment is satisfied that it is e?'edient in the '!blic interest to taEe s'ecial meas!resfor the '!r'ose of checEin the illeal im'ort, circ!lation or dis'osal of s!ch oods, or facilitatinthe detection of s!ch oods, it ma#, b# notification in the fficial 7aette, s'ecif# oods of s!chclass or descri'tion.

11C% !ersons possessin noti)ie' oo's to inti(ate the place o) storae, etc%=1> +@er# 'erson who owns, 'ossesses or controls, on the notified date, an# notified oods, shall,within se@en da#s from that date, deli@er# to the 'ro'er officer a statement =in s!ch form, in s!chmanner and containin s!ch 'artic!lars as ma# be s'ecified b# r!les made in this behalf> inrelation to the notified oods owned, 'ossessed or controlled b# him and the 'lace where s!ch

oods are Ee't or stored.

=2> +@er# 'erson who acB!ires, after the notified date, an# notified oods, shall, before maEins!ch acB!isition, deli@er to the 'ro'er officer an intimation containin the 'artic!lars of the 'lacewhere s!ch oods are 'ro'osed to be Ee't or stored after s!ch acB!isition and shall, immediatel#on s!ch acB!isition, deli@er to the 'ro'er officer a statement =in s!ch form, in s!ch manner andcontainin s!ch 'artic!lars as ma# be s'ecified b# the r!les made in this behalf, in relation to thenotified oods acB!ired b# him)

$&8(D+D that a 'erson who has deli@ered a statement, whether !nder s!b*section =1> or s!b*section =2> in relation to an# notified oods, owned, 'ossessed, controlled or acB!ired b# him,shall not be reB!ired to deli@er an# f!rther statement in relation to an# notified oods acB!ired b#him, after the date of deli@er# of the said statement, so lon as the notified oods so acB!ired are

Ee't or stored at the intimated 'lace.

=3> (f an# 'erson intends to shift an# notified oods to an# 'lace other than the intimated 'lace, heshall, before taEin o!t s!ch oods from the intimated 'lace, deli@er to the 'ro'er officer anintimation containin the 'artic!lars of the 'lace to which s!ch oods are 'ro'osed to be shifted.

=;> No 'erson shall, after the e?'ir# of se@en da#s from the notified date, Eee' or store an#notified oods at an# 'lace other than the intimated 'lace.

=5> here an# notified oods ha@e been sold or transferred, s!ch oods shall not be taEen fromone 'lace to another !nless the# are accom'anied b# the @o!cher referred to in section 11/.

=6> No notified oods =other than those which ha@e been sold or transferred> shall be taEen from

one 'lace to another !nless the# are accom'anied b# a trans'ort @o!cher =in s!ch form andcontainin s!ch 'artic!lars as ma# be s'ecified b# the r!les made in this behalf> 're'ared b# the'ersons ownin, 'ossessin or controllin s!ch oods.

11D% !reca+tions to .e ta4en .- persons ac+irin noti)ie' oo'sNo 'erson shall acB!ire =e?ce't b# ift or s!ccession, from an# other indi@id!al in (ndia>, after thenotified date, an# notified oods*

=i> !nless s!ch oods are accom'anied b#,*


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=a> the @o!cher referred to in section 11/ or the memorand!m referred to in s!b*section =2> ofsection 117, as the case ma# be or

=b> in the case of a 'erson who has himself im'orted an# oods, an# e@idence showin clearanceof s!ch oods b# the c!stoms a!thorities and

=ii> !nless he has taEen, before acB!irin s!ch oods from a 'erson other than a dealer ha@in afi?ed 'lace of b!siness, s!ch reasonable ste's as ma# be s'ecified b# r!les made in this behalf,to ens!re that the oods so acB!ired b# him are not oods which ha@e been illeall# im'orted.

11E% !ersons possessin noti)ie' oo's to (aintain acco+nts=1> +@er# 'erson who, on or after the notified date, owns, 'ossesses, controls or acB!ires an#notified oods shall maintain =in s!ch form and in s!ch manner as ma# be s'ecified b# r!lesmade in this behalf> a tr!e and com'lete acco!nt of s!ch oods and shall, as often as heacB!ires or 'arts with an# notified oods, made an entr# in the said acco!nt in relation to s!chacB!isition or 'artin with, and shall also state therein the 'artic!lars of the 'ersons from whoms!ch oods ha@e been acB!ired or in whose fa@o!r s!ch oods ha@e been 'arted with, as thecase ma# be, and s!ch acco!nt shall be Ee't, alon with the oods, at the 'lace of storae of thenotified oods to which s!ch acco!nts relate)

$&8(D+D that it shall not be necessar# to maintain se'aratel# acco!nts in the form and manners'ecified b# the r!les made in this behalf in the case of a 'erson who is alread# maintaininacco!nts which contain the 'artic!lars s'ecified b# the said r!les.

=2> +@er# 'erson who owns, 'ossesses or controls an# notified oods and who !ses an# s!choods for the man!fact!re of an# other oods, shall maintain =in s!ch form, in s!ch manner andcontainin s!ch 'artic!lars as ma# be s'ecified b# r!les made in this behalf> a tr!e and com'leteacco!nt of the notified oods so !sed b# him and shall Eee' s!ch acco!nt at the intimated 'lace.

11% Sale, etc, o) noti)ie' oo's to .e ei'ence' .- o+chersn and from the notified date, no 'erson shall sell or otherwise transfer an# notified oods,!nless e@er# transaction in relation to the sale or transfer of s!ch oods is e@idenced b# a@o!cher in s!ch form and containin s!ch 'artic!lars as ma# be s'ecified b# r!les made in this

behalf.

11:% Sections 11C, 11E, an' 11 not to appl- to oo's in personal +se=1> Nothin in sections 110 , 11+ and 11/ shall a''l# to an# notified oods which are*

=a> in 'ersonal !se of the 'erson b# whom the# are owned, 'ossessed or controlled, or

=b> Ee't in the residential 'remises of a 'erson for his 'ersonal !se.

=2> (f an# 'erson, who is in 'ossession of an# notified oods referred to in s!b*section =1>, sells,or otherwise transfers for a @al!able consideration, an# s!ch oods, he shall iss!e to the'!rchaser or transferee, as the case ma# be, a memorand!m containin s!ch 'artic!lars as ma#be s'ecified b# the r!les made in this behalf and no s!ch oods shall be taEen from one 'lace to

another !nless the# are accom'anied b# the said memorand!m.CA!TER I> B

!RE>ENTION OR DETECTION O I##E:A# E?!ORT O :OODS

11% De)initions(n this 0ha'ter, !nless the conte?t otherwise reB!ires,*


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=a> Cilleal e&portC means the e?'ort of an# oods in contra@ention of the 'ro@isions of this Act oran# other law for the time bein in force

=b> Cinti(ate' placeC means a 'lace intimated !nder s!b*section =1>, s!b*section =2> or s!b*section =3>, as the case ma# be, of section l1H

=c> Cspeci)ie' areaC incl!des the (ndian c!stoms waters, and s!ch inland area, not e?ceedinone h!ndred Eilometres in width from an# coast or other border of (ndia, as the 0entral7o@ernment ma#, ha@in reard to the @!lnerabilit# of that area to sm!lin, b# notification inthe fficial 7aette, s'ecif# in this behalf)

$&8(D+D that where a 'art of an# @illae, town or cit# falls within a s'ecified area, the whole ofs!ch @illae, town or cit# shall, notwithstandin that the whole of it is not within one h!ndredEilometres from an# coast or other border of (ndia, be deemed to be incl!ded in s!ch s'ecifiedarea

=d> Cspeci)ie' 'ateC, in relation to s'ecified oods, means the date on which an# notification isiss!ed !nder section 11*( in relation to those oods in an# s'ecified area

=e> Cspeci)ie' oo'sC means oods of an# descri'tion s'ecified in the notification iss!ed !nder

section 11*( in relation to a s'ecified area.

11"I% !o3er o) Central :oern(ent to speci)- oo's(f, ha@in reard to the manit!de of the illeal e?'ort of oods of an# class or descri'tion, the0entral 7o@ernment is satisfied that it is e?'edient in the '!blic interest to taEe s'ecial meas!resfor the '!r'ose of checEin the illeal e?'ort or facilitatin the detection of oods which are liEel#to be illeall# e?'orted, it ma#, b# notification in the fficial 7aette, s'ecif# oods of s!ch classor descri'tion.

11% !ersons possessin speci)ie' oo's to inti(ate the place o) storae, etc%=1> +@er# 'erson who owns, 'ossesses or controls, on the s'ecified date, an# s'ecified oods,the marEet 'rice of which e?ceeds fifteen tho!sand r!'ees shall, within se@en da#s from thatdate, deli@er to the 'ro'er officer an intimation containin the 'artic!lars of the 'lace where s!ch

oods are Ee't or stored within the s'ecified area.

=2> +@er# 'erson who acB!ires =within the s'ecified area>, after the s'ecified date, an# s'ecifiedoods,*

=i> the marEet 'rice of which, or

=ii> the marEet 'rice of which toether with the marEet 'rice of an# s'ecified oods of the sameclass or descri'tion, if an#, owned, 'ossessed or controlled b# him on the date of s!chacB!isition, e?ceeds fifteen tho!sand r!'ees shall, before maEin s!ch acB!isition, deli@er to the'ro'er officer an intimation containin the 'artic!lars of the 'lace where s!ch oods are'ro'osed to be Ee't or stored after s!ch acB!isition)

$&8(D+D that a 'erson who has deli@ered an intimation, whether !nder s!b*section

=1> or s!b*section =2>, in relation to an# s'ecified oods, owned, 'ossessed, controlled oracB!ired b# him, shall not be reB!ired to deli@er an# f!rther intimation so lon as the s'ecifiedoods are Ee't or stored at the intimated 'lace.

=3> (f an# 'erson intends to shift an# s'ecified oods to which s!b*section =1> or s!b*section =2>a''lies, to an# 'lace other than the intimated 'lace, he shall, before taEin o!t s!ch oods fromthe intimated 'lace, deli@er to the 'ro'er officer an intimation containin the 'artic!lars of the'lace to which s!ch oods are 'ro'osed to be shifted.


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=;> No 'erson shall, after the e?'ir# of se@en da#s from the s'ecified date, Eee' or store an#s'ecified oods to which s!b*section =1> or s!b*section =2> a''lies, at an# 'lace other than theintimated 'lace.

11% Transport o) speci)ie' oo's to .e coere' .- o+chers=1> No s'ecified oods shall be trans'orted from, into or within an# s'ecified area or loaded onan# animal or con@e#ance in s!ch area, !nless the# are accom'anied b# a trans'ort @o!cher =ins!ch form and containin s!ch 'artic!lars as ma# be s'ecified b# r!les made in this behalf>'re'ared b# the 'erson ownin, 'ossessin, controllin or sellin s!ch oods)

$&8(D+D that no trans'ort @o!cher shall be necessar# for the trans'ort, within a @illae, townor cit#, of an# s'ecified oods the marEet 'rice of which, on the date of trans'ort, does note?ceed one tho!sand r!'ees.

=2> Notwithstandin an#thin contained in s!b*section =1>, where the 0entral 7o@ernment, afterconsiderin the nat!re of an# s'ecified oods, the time, mode, ro!te and the marEet 'rice of theoods intended to be trans'orted, the '!r'ose of the trans'ortation and the @!lnerabilit# of thes'ecified area with reard to the illeal e?'ort of s!ch oods, is satisfied that it is e?'edient in the'!blic interest so to do, it ma#*

=i> b# notification in the fficial 7aette, s'ecif# oods of s!ch class or descri'tion and of amarEet 'rice e?ceedin s!ch s!m as that o@ernment ma# notif# and different s!ms in relation tothe s'ecified oods of the same class or descri'tion, or different classes or descri'tions, ma# benotified for the same s'ecified area or for different s'ecified areas, and

=ii> direct that no 'erson shall trans'ort an# oods so s'ecified !nless the trans'ort @o!cher inrelation to them has been co!ntersined b# the 'ro'er officer.

11#% !ersons possessin speci)ie' oo's to (aintain acco+nts=1> +@er# 'erson who, on or after the s'ecified date, owns, 'ossesses or controls, within as'ecified area, an# s'ecified oods of a marEet 'rice e?ceedin fifteen tho!sand r!'ees, shallmaintain =in s!ch form and in s!ch manner as ma# be s'ecified b# r!les made in this behalf> a

tr!e and com'lete acco!nt of s!ch oods and shall, as often as he acB!ires or 'arts with an#s'ecified oods, maEe an entr# in the said acco!nt in relation to s!ch acB!isition or 'artin with,and shall also state therein the 'artic!lars of the 'erson from whom s!ch oods ha@e beenacB!ired or in whose fa@o!r s!ch oods ha@e been 'arted with, as the case ma# be, and s!chacco!nt shall be Ee't, alon with the oods, at the 'lace of storae of the s'ecified oods towhich s!ch acco!nts relate)

$&8(D+D that it shall not be necessar# to maintain se'aratel# acco!nts in the form and manners'ecified b# r!les made in this behalf in the case of a 'erson who is alread# maintainin acco!ntswhich contain the 'artic!lars s'ecified b# the said r!les.

=2> +@er# 'erson who owns, 'ossesses or controls an# s'ecified oods to which the 'ro@isions ofs!b*section =1> a''l#, and who !ses an# s!ch oods for the man!fact!re of an# other oods,

shall maintain =in s!ch form, in s!ch manner and containin s!ch 'artic!lars as ma# be s'ecifiedb# r!les made in this behalf> a tr!e and com'lete acco!nt of the s'ecified oods so !sed b# himand shall Eee' s!ch acco!nt at the intimated 'lace.

=3> (f at an# time, on a @erification made b# a 'ro'er officer, it is fo!nd that an# s'ecified oodsowned, 'ossessed or controlled b# a 'erson are less in B!antit# than the stocE of s!ch oods asshown, at the time of s!ch @erification, in the acco!nt referred to in s!b*section =1>, read with theacco!nts referred to in s!b*section =2>, it shall be 'res!med, !nless the contrar# is 'ro@ed, thats!ch oods, to the e?tent that the# are less than the stocE shown in the said acco!nts, ha@e beenilleall# e?'orted and that the 'erson ownin, 'ossessin or controllin s!ch oods has been


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concerned with the illeal e?'ort thereof.

11-. te's to be taEen b# 'ersons sellin or transferrin an# s'ecified oods+?ce't where he recei@es 'a#ment b# cheB!e drawn b# the '!rchaser, e@er# 'erson who sells orotherwise transfers within an# s'ecified area, an# s'ecified oods, shall obtain, on his co'# of thesale or transfer @o!cher, the sinat!re and f!ll 'ostal address of the 'erson to whom s!ch a saleor transfer is made and shall also taEe s!ch other reasonable ste's as ma# be s'ecified b# r!lesmade in this behalf to satisf# himself as to the identit# of the '!rchaser or the transferee, as thecase ma# be, and if after an inB!ir# made b# a 'ro'er officer, it is fo!nd that the '!rchaser or thetransferee, as the case ma# be, is not either readil# traceable or is a fictitio!s 'erson, it shall be'res!med, !nless the contrar# is 'ro@ed, that s!ch oods ha@e been illeall# e?'orted and the'erson who had sold or otherwise transferred s!ch oods had been concerned in s!ch illeale?'ort)

$&8(D+D that nothin in this section shall a''l# to 'ett# sales of an# s'ecified oods if theareate marEet 'rice obtained b# s!ch 'ett# sales, made in the co!rse of a da#, does note?ceed two tho!sand and fi@e h!ndred r!'ees.

+?'lanation ) (n this section C'ett# saleC means a sale at a 'rice which does not e?ceed onetho!sand r!'ees.

CA!TER I>"C!OER TO E?EM!T ROM TE !RO>ISIONS O CA!TERS I>"A AND I>"B

1IN% !o3er to e&e(pt(f the 0entral 7o@ernment is satisfied that it is necessar# in the '!blic interest so to do, it ma#, b#notification in the fficial 7aette, e?em't enerall#, either absol!tel# or s!bGect to s!chconditions as ma# be s'ecified in the notification, oods of an# class or descri'tion from all or an#of the 'ro@isions of 0ha'ter (8A or 0ha'ter (8".1

CA!TER > @ #E>$ O, AND E?EM!TION ROM, CUSTOMS DUTIES

12% D+tia.le oo's=1> +?ce't as otherwise 'ro@ided in this Act or an# other law for the time bein in force, d!ties ofc!stoms shall be le@ied at s!ch rates as ma# be s'ecified !nder 11[the 0!stoms %ariff Act, 195=51 of 195>,] or an# other law for the time bein in force, on oods im'orted into, or e?'ortedfrom, (ndia.

12[=2> %he 'ro@isions of s!b*section =1> shall a''l# in res'ect of all oods belonin too@ernment as the# a''l# in res'ect of oods not belonin to 7o@ernment.]

17% D+t- on pil)ere' oo's(f an# im'orted oods are 'ilfered after the !nloadin thereof and before the 'ro'er officer hasmade an order for clearance for home cons!m'tion or de'osit in a wareho!se, the im'orter shallnot be liable to 'a# the d!t# le@iable on s!ch oods e?ce't where s!ch oods are restored to the

im'orter after 'ilferae.

18% >al+ation o) oo's )or p+rposes o) assess(ent=1> /or the '!r'oses of 11[the 0!stoms %ariff Act, 195 =51 of 195>,] or an# other law for thetime bein in force where* !nder a d!t# of c!stoms is chareable on an# oods b# reference totheir @al!e, the @al!e of s!ch oods shall be deemed to be13 the 'rice at which s!ch or liEeoods are ordinaril# sold, or offered for sale, for deli@er# at the time and 'lace of im'ortation ore?'ortation, as the case ma# be, in the co!rse of international trade, where the seller and theb!#er ha@e no interest in the b!siness of each other and the 'rice is the sole consideration for the


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sale or offer for sale)

1;[$&8(D+D that s!ch 'rice shall be calc!lated with reference to the rate of e?chane as inforce on the date on which a bill of entr# is 'resented !nder section ;6, or a shi''in bill or bill ofe?'ort, as the case ma# be, is 'resented !nder section 54]

15[=1A> !bGect to the 'ro@isions of s!b*section =1>, the 'rice referred to in that s!b*section inres'ect of im'orted oods shall be determined in accordance with the r!les made in this behalf.]

=2> Notwithstandin an#thin contained in s!b*section =1> 1;[or s!b*section =1A>], if the 0entral7o@ernment is satisfied that it is necessar# or e?'edient so to do it ma#, b# notification in thefficial 7aette, fi? tariff @al!es for an# class of im'orted oods or e?'ort oods, ha@in reard tothe trend of @al!e of s!ch or liEe oods, and where an# s!ch tariff @al!es are fi?ed, the d!t# shallbe chareable with reference to s!ch tariff @al!e.

=3> /or the '!r'oses of this section*

=a> Crate of e?chaneC means the rate of e?chane*

=i> determined b# the 0entral 7o@ernment, or

=ii> ascertained in s!ch manner as the 0entral 7o@ernment ma# direct,

for the con@ersion of (ndian c!rrenc# into forein c!rrenc# or forein c!rrenc# into (ndianc!rrenc#.

=b> Cforein c!rrenc#C and C(ndian c!rrenc#C ha@e the meanins res'ecti@el# assined to them inthe /orein +?chane &e!lation Act, 193 =;6 of 193>

15% Date )or 'eter(ination o) rate o) '+t- an' tari)) al+ation o) i(porte' oo's=1> 16[%he rate of d!t# 1[III]] and tariff @al!ation, if an#, a''licable to an# im'orted oods, shallbe the rate and @al!ation in force,*

=a> in the case of oods entered for home cons!m'tion !nder section ;6, on the date on which abill of entr# in res'ect of s!ch oods is 'resented !nder that section

=b> in the case of oods cleared from a wareho!se !nder section 6:, on the date on which theoods are act!all# remo@ed from the wareho!se

=c> in the case of an# other oods, on the date of 'a#ment of d!t#)

1:[$&8(D+D that if a bill of entr# has been 'resented before the date of entr# inwards of the@essel or the arri@al of the aircraft b# which the oods are im'orted, the bill of entr# shall bedeemed to ha@e been 'resented on the date of s!ch entr# inwards or the arri@al, as the case ma#be.]

=2> %he 'ro@isions of this section shall not a''l# to baae and oods im'orted b# 'ost.

16% Date )or 'eter(ination o) rate o) '+t- an' tari)) al+ation o) e&port oo's19[=1> %he rate of d!t# and tariff @al!ation, if an#, a''licable to an# e?'ort oods, shall be the rateand @al!ation in force*

=a> in the case of oods entered for e?'ort !nder section 54, on the date on which the 'ro'erofficer maEes an order 'ermittin clearance and loadin of the oods for e?'ortation !ndersection 51


14/25

=b> in the case of an# other oods,on the date of 'a#ment of d!t#.]

=2> %he 'ro@isions of this section shall not a''l# to baae and oods e?'orted b# 'ost.

1;% Assess(ent o) '+t-=1> After an im'orter has entered an# im'orted oods !nder section ;6, or an e?'orter hasentered an# e?'ort oods !nder section 54 the im'orted oods or the e?'ort oods, as the casema# be, or s!ch 'art thereof as ma# be necessar# ma#, witho!t !nd!e dela#, be e?amined andtested b# the 'ro'er officer.

=2> After s!ch e?amination and testin, the d!t#, if an#, le@iable on s!ch oods shall, sa@e asotherwise 'ro@ided in section :5, be assessed.

=3> /or the '!r'ose of assessin d!t# !nder s!b*section =2>, the 'ro'er officer ma# reB!ire theim'orter, e?'orter or an# other 'erson to 'rod!ce an# contract, broEerJs note, 'olic# ins!rance,catalo!e or other doc!ment whereb# the d!t# le@iable on the im'orted oods or e?'ort oods,as the case ma# be, can be ascertained, and to f!rnish an# information reB!ired for s!chascertainment which it is in his 'ower to 'rod!ce or f!rnish, and there!'on the im'orter, e?'orteror s!ch other 'erson shall 'rod!ce s!ch doc!ment and f!rnish s!ch information.

=;> Notwithstandin an#thin in this section, im'orted oods or e?'ort oods ma#, 'rior to thee?amination or testin thereof, be 'ermitted b# the 'ro'er officer to be assessed to d!t# on thebasis of the statements made in the entr# relatin thereto and the doc!ments 'rod!ced and theinformation f!rnished !nder s!b*section =3> b!t if it is fo!nd s!bseB!entl# on e?amination ortestin of the oods or otherwise that an# statement in s!ch entr# or doc!ment or an# informationso f!rnished is not tr!e in res'ect of an# matter rele@ant to the assessment, the oods ma#,witho!t 'reG!dice to an# other action which ma# be taEen !nder this Act, be re*assessed to d!t#.

1 where the 'ro'er officer deems it necessar# to s!bGect an# im'orted oods or e?'ort oods toan# chemical or other test for the '!r'ose of assessment of d!t# thereon or

=c> where the im'orter or the e?'orter has 'rod!ced all the necessar# doc!ments and f!rnishedf!ll information for the assessment of d!t# b!t the 'ro'er officer deems it necessar# to maEef!rther enB!ir# for assessin the d!t#,

the 'ro'er officer ma# direct that the d!t# le@iable on s!ch oods ma#, 'endin the 'rod!ction ofs!ch doc!ments or f!rnishin of s!ch information or com'letion of s!ch test or enB!ir#, beassessed 'ro@isionall# if the im'orter or the e?'orter, as the case ma# be, f!rnishes s!ch sec!rit#

as the 'ro'er officer deems fit for the 'a#ment of the deficienc#, if an#, between the d!t# finall#assessed and the d!t# 'ro@isionall# assessed.

=2> hen the d!t# le@iable on s!ch oods is assessed finall# in accordance with the 'ro@isions ofthis Act, then*

=a> in the case of oods cleared for home cons!m'tion or e?'ortation, the amo!nt 'aid shall beadG!sted aainst the d!t# finall# assessed and if the amo!nt so 'aid falls short of, or is in e?cessof 24[the d!t# finall# assessed,] the im'orter or the e?'orter of the oods shall 'a# the deficienc#or be entitled to a ref!nd, as the case ma# be


15/25

=b> in the case of wareho!sed oods, the 'ro'er officer ma#, where the d!t# finall# assessed is ine?cess of the d!t# 'ro@isionall# assessed, reB!ire the im'orter to e?ec!te a bond, bindin himselfin a s!m eB!al to twice the amo!nt of the e?cess d!t#.

19% Deter(ination o) '+t- 3here oo's consist o) articles lia.le to 'i))erent rates o) '+t-+?ce't as otherwise 'ro@ided in an# law for the time bein in force, where oods consist of a setof articles, d!t# shall be calc!lated as follows)*

=a> articles to d!t# with reference to B!antit# shall be chareable to that d!t#

=b> articles liable to d!t# with reference to @al!e shall, if the# are liable to d!t# at the same rate,be chareable to d!t# at that rate, and if the# are liable to d!t# at different rates, be chareable tod!t# at the hihest of s!ch rates

=c> articles not liable to d!t# shall be chareable to d!t# at the rate at which articles liable to d!t#with reference to @al!e are liable !nder cla!se =b>)

$&8(D+D that*

=a> accessories of, and s'are 'arts or maintenance and re'airin im'lements for an# article whichsatisfies the conditions s'ecified in the r!les made in this behalf shall be chareable at the samerate of d!t# as that article

=b> if the im'orter 'rod!ces e@idence to the satisfaction of the 'ro'er officer reardin the @al!eof an# of the articles liable to different rates of d!t#, s!ch article shall be chareable to d!t#se'aratel# at the rate a''licable to it.

212=%Re"i(portation o) oo's pro'+ce' or (an+)act+re' in In'ia=1> (f oods are im'orted into (ndia after e?'ortation therefrom, s!ch oods shall be liable to d!t#and be s!bGect to all the conditions and restrictions, if an#, to which oods of the liEe Eind and@al!e are liable or s!bGect, on the im'ortation thereof.]

21% :oo's 'erelict, 3rec4, etc%All oods, derelict, Getsam, flotsam, and wrecE bro!ht or comin into (ndia shall be dealt with asif the# were im'orted into (ndia, !nless it be shown to the satisfaction of the 'ro'er officer thatthe# are entitled to be admitted d!t#*free !nder this Act.

22[I I I]

22% A.ate(ent o) '+t- on 'a(ae' or 'eteriorate' oo's=1> here it is shown to the satisfaction of the 23[Assistant 0ommissioner of 0!stoms or De'!t#0ommissioner of 0!stoms]*

=a> that an# im'orted oods had been damaed or had deteriorated at an# time before or d!rinthe !nloadin of the oods in (ndia or

=b> that an# im'orted oods, other than wareho!sed oods, had been damaed at an# time afterthe !nloadin thereof in (ndia b!t before their e?amination !nder section 1, on acco!nt of an#accident not d!e to an# wilf!l act, nelience or defa!lt of the im'orter, his em'lo#ee or aent or

=c> that an# wareho!sed oods had been damaed at an# time before clearance for homecons!m'tion on acco!nt of an# accident not d!e to an# wilf!l act, nelience or defa!lt of theowner, his em'lo#ee or aent,

s!ch oods shall be chareable to d!t# in accordance with the 'ro@isions of s!b*section =2>.


16/25

=2> %he d!t# to be chared on the oods referred to in s!b*section =1> shall bear the same'ro'ortion to the d!t# chareable on the oods before the damae or deterioration which the@al!e of the damaed or deteriorated oods bears to the @al!e of the oods before the damaeor deterioration.

=3> /or the '!r'oses of this section, the @al!e of damaed or deteriorated oods ma# beascertained b# either of the followin methods at the o'tion of the owner)*

=a> the @al!e of s!ch oods ma# be ascertained b# the 'ro'er officer, or

=b> s!ch oods ma# be sold b# the 'ro'er officer b# '!blic a!ction or b# tender, or with theconsent of the owner in an# other manner, and the ross sale 'roceeds shall be deemed to bethe @al!e of s!ch oods.

27% Re(ission o) '+t- on lost, 'estro-e' or a.an'one' oo's=1> 2;[itho!t 'reG!dice to the 'ro@isions of section l3, here it is shown] to the satisfaction ofthe 23[Assistant 0ommissioner of 0!stoms or De'!t# 0ommissioner of 0!stoms] that an#im'orted oods ha@e been lost 6[=otherwise than as a res!lt of 'ilferae>] or destro#ed, at an#time before clearance for home cons!m'tion, the

23[Assistant 0ommissioner of 0!stom or De'!t# 0ommissioner of 0!stoms] shall remit the d!t#on s!ch oods.

21[=2> %he owner of an# im'orted oods ma# at an# time before an order for clearance of theoods for home cons!m'tion !nder section ; or an order for 'ermittin the de'osit of oods in awareho!se !nder section 64 has been made, relinB!ish his title to the oods and there!'on heshall not be liable to 'a# the d!t# thereon.]

28% !o3er to (a4e r+les )or 'enat+rin or (+tilation o) oo's%he 0entral 7o@ernment ma# maEe r!les for 'ermittin at the reB!est of the owner thedenat!rin or m!tilation of im'orted oods which are ordinaril# !sed for more than one '!r'oseso as to render them !nfit for one or more of s!ch '!r'oses and where an# oods are so

denat!red or m!tilated the# shall be chareable to d!t# at s!ch rate as wo!ld be a''licable if theoods had been im'orted in the denat!red or m!tilated form.

25% !o3er to rant e&e(ption )ro( '+t-=1> (f the 0entral 7o@ernment is satisfied that it is necessar# in the '!blic interest so to do, it ma#,b# notification in the fficial 7aette, e?em't enerall# either absol!tel# or s!bGect to s!chconditions =to be f!lfilled before or after clearance> as ma# be s'ecified in the notification oodsof an# s'ecified descri'tion from the whole or an# 'art of d!t# of c!stoms le@iable thereon.

25[=2> (f the 0entral 7o@ernment is satisfied that it is necessar# in the '!blic interest so to do, itma#, b# s'ecial order in each case, e?em't from 'a#ment of d!t#, for reasons to be stated ins!ch order, an# oods, of strateic or secret nat!re, or for charitable '!r'ose, on which d!t# isle@iable.]

6[=3> An e?em'tion !nder s!b*section =1> or s!b*section =2> in res'ect of an# oods from an# 'artof the d!t# of c!stoms le@iable thereon =the d!t# of c!stoms, le@iable thereon bein hereinafterreferred to as the stat!tor# d!t#> ma# be ranted b# 'ro@idin for the le@# of a d!t# on s!ch oodsat a rate e?'ressed in a form or method different from the form or method in which the stat!tor#d!t# is le@iable and an# e?em'tion ranted in relation to an# oods in the manner 'ro@ided in thiss!b*section shall ha@e effect s!bGect to the condition that the d!t# of c!stoms chareable on s!choods shall in no case e?ceed the stat!tor# d!t#.

+?'lanation) C/orm or methodC, in relation to a rate of d!t# of c!stoms, means the basis, namel#,


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@al!ation, weiht, n!mber, lenth, area, @ol!me or other meas!re with reference to which thed!t# is le@iable.]

26/80 Eer- noti)ication iss+e' +n'er s+."section /10 shall"

=a> !nless otherwise 'ro@ided, come into force on the date of its iss!e b# the 0entral 7o@ernmentfor '!blication in the fficial 7aette

=b> also be '!blished and offered for sale on the date of its iss!e b# the Directorate of $!blicit#and $!blic &elations of the "oard, New Delhi.

=5> Notwithstandin an#thin contained in s!b*section =;>, where a notification comes into forceon a date later than the date of its iss!e, the same shall be '!blished and offered for sale b# thesaid Directorate of $!blicit# and $!blic &elations on a date on or before the date on which thesaid notification comes into force.]

26% Re)+n' o) e&port '+t- in certain caseshere on the e?'ortation of an# oods an# d!t# has been 'aid, s!ch d!t# shall be ref!nded tothe 'erson b# whom or on whose behalf it was 'aid, if*

=a> the oods are ret!rned to s!ch 'erson otherwise than b# wa# of re*sale

=b> the oods are re*im'orted within one #ear from the date of e?'ortation and

=c> an a''lication for ref!nd of s!ch d!t# is made before the e?'ir# of si? months from the date onwhich the 'ro'er officer maEes an order for the clearance of the oods.

2;2;% Clai( )or re)+n' o) '+t-=1> An# 'erson claimin ref!nd of an# 2:[d!t# and interest, if an#, 'aid on s!ch d!t#]*

=a> 'aid b# him in '!rs!ance of an order of assessment or

=b> borne b# him,

ma# maEe an a''lication for ref!nd of s!ch 2:[d!t# and interest, if an#, 'aid on s!ch d!t#] to the23[Assistant 0ommissioner of 0!stoms or De'!t# 0ommissioner of 0!stoms]*

=a> in the case of an# im'ort made b# an# indi@id!al for his 'ersonal !se or b# o@ernment or b#an# ed!cational, research or charitable instit!tion or hos'ital, before the e?'ir# of one #ear

=b> in an# other case, before the e?'ir# of si? months.

from the date of 'a#ment of 2:[d!t# and interest, if an#, 'aid on s!ch d!t#], in s!ch form andmanner as ma# be s'ecified in the re!lations made in this behalf and the a''lication shall beaccom'anied b# s!ch doc!mentar# or other e@idence =incl!din the doc!ments referred to insection 2:0> as the a''licant ma# f!rnish to establish that the amo!nt of 2:[d!t# and interest, if

an#, 'aid on s!ch d!t#] in relation to which s!ch ref!nd is claimed was collected from, or 'aid b#,him and the incidence of s!ch 2:[d!t# and interest, if an#, 'aid on s!ch d!t#] had not been'assed on b# him to an# other 'erson)

$&8(D+D that where an a''lication for ref!nd has been made before the commencement ofthe 0entral +?cise and 0!stoms aws =Amendment> Act, 1991, s!ch a''lications shall bedeemed to ha@e been made !nder this s!b*section and the same shall be dealt with inaccordance with the 'ro@isions of s!b*section =2>.

$&8(D+D /&%+& that the limitation of one #ear or si? months, as the case ma# be, shall not


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a''l# where an# 2:[d!t# and interest, if an#, 'aid on s!ch d!t#] has been 'aid !nder 'rotest.

29[$&8(D+D A that in the case of oods which are e?em't from 'a#ment of d!t# b# as'ecial order iss!ed !nder s!b*section =2> of section 25, the limitation of one #ear or si? months,as the case ma# be, shall be com'!ted from the date of iss!e of s!ch order.]

+?'lanation () /or the '!r'oses of this s!b*section, the date of 'a#ment of 2:[d!t# and interest, ifan#, 'aid on s!ch d!t#], in relation to a 'erson, other than the im'orter, shall be constr!ed as Cthedate of '!rchase of oodsC b# s!ch 'erson.

26E&planation II @ here an- '+t- is pai' proisionall- +n'er section 1 (f, on recei't of an# s!ch a''lication, the 23[Assistant 0ommissioner of 0!stoms or De'!t#0ommissioner of 0!stoms] is satisfied that the whole or an# 'art of the29[d!t# and interest, ifan#, 'aid on s!ch d!t#] 'aid b# the a''licant is ref!ndable, he ma# maEe an order accordinl#and the amo!nt so determined shall be credited to the /!nd)

$&8(D+D that the amo!nt of 2:[d!t# and interest, if an#, 'aid on s!ch d!t#] as determined b#

the 23[Assistant 0ommissioner of 0!stoms or De'!t# 0ommissioner of 0!stoms] !nder theforeoin 'ro@isions of this s!b*section shall, instead of bein credited to the /!nd, be 'aid to thea''licant, if s!ch amo!nt is relatable to*

=a> the 2:[d!t# and interest, if an#, 'aid on s!ch d!t#] 'aid b# the im'orter, if he had not 'assedon the incidence of s!ch d!t# and interest, if an#, 'aid on s!ch d!t# to an# other 'erson

=b> the 2:[d!t# and interest, if an#, 'aid on s!ch d!t#] on im'orts made b# an indi@id!al for his'ersonal !se

=c> the 2:[d!t# and interest, if an#, 'aid on s!ch d!t#] borne b# the b!#er, if he had not 'assed onthe incidence of s!ch 29[d!t# and interest, if an#, 'aid on s!ch d!t#] to an# other 'erson

=d> the e?'ort d!t# as s'ecified in section 26

=e> drawbacE of d!t# 'a#able !nder sections ; and 5

=f> the 2:[d!t# and interest, if an#, 'aid on s!ch d!t#] borne b# an# other s!ch class of a''licantsas the 0entral 7o@ernment ma#, b# notification in the fficial 7aette s'ecif#)

$&8(D+D /&%+& that no notification !nder cla!se =f> of the first 'ro@iso shall be iss!ed!nless in the o'inion of the 0entral 7o@ernment the incidence of 2:[d!t# and interest, if an#, 'aidon s!ch d!t#] has not been 'assed on b# the 'ersons concerned to an# other 'erson.

=3> Notwithstandin an#thin to the contrar# contained in an# G!dement, decree, order ordirection of the A''ellate %rib!nal or an# co!rt or in an# other 'ro@ision of this Act or the

re!lations made there!nder or an# other law for the time bein in force, no ref!nd shall be madee?ce't as 'ro@ided in s!b*section =2>.

=;> +@er# notification !nder cla!se =f> of the first 'ro@iso to s!b*section =2> shall be laid beforeeach o!se of $arliament, if it is sittin, as soon as ma# be after the iss!e of the notification, and,if it is not sittin, within se@en da#s of its re*assembl#, and the 0entral 7o@ernment shall seeE thea''ro@al of $arliament to the notification b# a resol!tion mo@ed within a 'eriod of fifteen da#sbeinnin with the da# on which the notification is so laid before the o!se of the $eo'le and if$arliament maEes an# modification in the notification, or directs that the notification sho!ld ceaseto ha@e effect, the notification shall thereafter ha@e effect onl# in s!ch modified form or be of no


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effect, as the case ma# be, b!t witho!t 'reG!dice to the @alidit# of an#thin 're@io!sl# donethere!nder.

=5> /or the remo@al of do!bts, it is hereb# declared that an# notification iss!ed !nder cla!se =f> ofthe first 'ro@iso to s!b*section =2>, incl!din an# s!ch notification a''ro@ed or modified !nders!b*section =;>, ma# be rescinded b# the 0entral 7o@ernment at an# time b# notification in thefficial 7aette.

CA!TER > @ #E>$ O, AND E?EM!TION ROM, CUSTOMSDUTIES

7=2;A% Interest on 'ela-e' re)+n's(f an# d!t# ordered to be ref!nded !nder s!b*section =2> of section 2 to ana''licant is not ref!nded with three months from the date of recei't of a''lication!nder s!b*section =1> of that section, there shall be 'aid to that a''licant interestat s!ch rate, not below ten 'er cent and not e?ceedin thirt# 'er cent 'er ann!mas is for the time bein fi?ed b# the "oard, on s!ch d!t# from the dateimmediatel# after the e?'ir# of three months from the date of recei't of s!cha''lication till the date of ref!nd of s!ch d!t#)

$&8(D+D that where an# d!t#, ordered to be ref!nded !nder s!b*section =2> ofsection 2 in res'ect of an a''lication !nder s!b*section =1> of that section madebefore the date on which the /inance "ill, 1995 recei@es the assent of the$resident, is not ref!nded within three months from s!ch date, there shall be 'aidto the a''licant interest !nder this section from the date immediatel# after threemonths from s!ch date, till the date of ref!nd of s!ch d!t#.

+?'lanation) here an# order of ref!nd is made b# the 0ommissioner =A''eals>,A''ellate %rib!nal or an# co!rt aainst an order of the 23[Assistant0ommissioner of 0!stoms or De'!t# 0ommissioner of 0!stoms] !nder s!b*section =2> of section 2, the order 'assed b# the 0ommissioner =A''eals>,

A''ellate %rib!nal or, as the case ma# be, b# the co!rt shall be deemed to be an

order 'assed !nder that s!b*section for the '!r'oses of this section.

52 in an# other case, within si? months,

from the rele@ant date, ser@e notice on the 'erson chareable with the d!t# orinterest which has not been le@ied or chared or which has been short*le@ied or'art 'aid or to whom the ref!nd has erroneo!sl# been made, reB!irin him toshow ca!se wh# he sho!ld not 'a# the amo!nt s'ecified in the notice)

$&8(D+D that where an# d!t# has been le@ied or has been short*le@ied or theinterest has not been chared or has been 'art 'aid or the d!t# or interest hasbeen erroneo!sl# ref!nded b# reason of coll!sion or an# willf!l mis*statement ors!''ression of facts b# the im'orter or the e?'orter or the aent or em'lo#ee ofthe im'orter or e?'orter, the 'ro@isions of this s!b*section shall ha@e effect as if


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for the words Cone #earC and Csi? monthsC, the words Cfi@e #earsC weres!bstit!ted.

+?'lanation ) here the ser@ice of the notice is sta#ed b# an order of a co!rt, the'eriod of s!ch sta# shall be e?cl!ded in com'!tin the aforesaid 'eriod of one#ear or si? months or fi@e #ears, as the case ma# be.

=2> %he 'ro'er officer, after considerin the re'resentation, if an#, made b# the'erson on whom notice is ser@ed !nder s!b*section =1> ,shall determine theamo!nt of d!t# or interest d!e from s!ch 'erson =not bein in e?cess of theamo!nt s'ecified in the notice> and there!'on s!ch 'erson shall 'a# the amo!ntso determined.

=3> /or the '!r'oses of s!b*section =1>, the e?'ression Crele@ant dateC means,*

=a> in a case where d!t# is not le@ied, or interest is not chared, the date onwhich the 'ro'er officer maEes an order for the clearance of the oods

=b> in a case where d!t# is 'ro@isionall# assessed !nder section 1:, the date ofadG!stment of d!t# after the final assessment thereof

=c> in a case where d!t# or interest has been erroneo!sl# ref!nded, the date ofref!nd

=d> in an# other case, the date of 'a#ment of d!t# or interest.]

712 that a 'ractice was, or is, enerall# 're@alent reardin le@# of d!t# =incl!dinnon*le@# thereof > on an# oods im'orted into, or e?'orted from (ndia and

=b> that s!ch oods were, or are, liable*

=i> to d!t#, in cases where accordin to the said 'ractice the d!t# was not, or isnot bein, le@ied, or

=ii> to a hiher amo!nt of d!t# than what was, or is bein , le@ied, accordin to thesaid 'ractice, then the 0entral 7o@ernment ma#, b# notification in the fficial7aette, direct that the whole of the d!t# 'a#able on s!ch oods, or, as the casema# be, the d!t# in e?cess of that 'a#able on s!ch oods, b!t for the said'ractice, shall not be reB!ired to be 'aid in res'ect of the oods on which thed!t# was not, or is not bein, le@ied, or was, or is bein, short*le@ied, inaccordance with the said 'ractice.]

33[=2> here an# notification !nder s!b*section =1> in res'ect of an# oods hasbeen iss!ed, the whole of the d!t# 'aid on s!ch oods, or, as the case ma# be,the d!t# 'aid in e?cess of that 'a#able on s!ch oods, which wo!ld not ha@ebeen 'aid if the said notification had been in force, shall be dealt with inaccordance with the 'ro@isions of s!b*section =2> of section 2)

$&8(D+D that the 'erson claimin the ref!nd of s!ch d!t#, or, as the case ma#be, e?cess d!t#, maEes an a''lication in this behalf to the 23[Assistant0ommissioner of 0!stoms or De'!t# 0ommissioner of 0!stom], in the form


21/25

referred to in s!b*section =1> of section 2, before the e?'ir# of si? months fromthe date of iss!e of the said notification.]

7=2 of section 2: before the date on which the /inance "ill, 1995 recei@edthe assent of the $resident, fails to 'a# s!ch d!t# within three months from s!chdate, then, s!ch 'erson shall be liable to 'a# interest !nder this section from thedate immediatel# after three months from s!ch date, till the date of 'a#ment ofs!ch d!t#.

+?'lanation 1 ) here the d!t# determined to be 'a#able is red!ced b# the

0ommissioner =A''eals>, A''ellate %rib!nal or, as the case ma# be, the co!rt,the date of s!ch determination shall be the date on which an amo!nt of d!t# isfirst determined to be 'a#able.

+?'lanation 2 ) here the d!t# determined to be 'a#able is increased or f!rtherincreased b# the 0ommissioner =A''eals>, A''ellate %rib!nal or, as the casema# be, the co!rt, the date of s!ch determination shall be,*

=a> for the amo!nt of d!t# first determined to be 'a#able, the date on which thed!t# is so determined

=b> for the amo!nt of increased d!t#, the date of order b# which the increasedamo!nt of d!t# is first determined to be 'a#able

=c> for the amo!nt of f!rther increase of d!t#, the date of order on which the d!t#is so f!rther increased.]

292 /or the remo@al of do!bts, it is hereb# declared that the 'ro@isions of s!b*section =1> shall not a''l# to cases where the d!t# became 'a#able before thedate on which the /inance =No. 2> Act, 1996 recei@es the assent of $resident.

+?'lanation 1 ) here the d!t# determined to be 'a#able is red!ced b# the0ommissioner =A''eals>, the A''ellate %rib!nal or, as the case ma# be, theco!rt, the interest shall be 'a#able on s!ch red!ced amo!nt of d!t#.


22/25

+?'lanation 2 ) here the d!t# determined to be 'a#able is increased or f!rtherincreased b# the 0ommissioner =A''eals>, the A''ellate %rib!nal or, as the casema# be, the co!rt, the interest shall be 'a#able on s!ch increased or f!rtherincreased amo!nt of d!t#.]

;2 shall be adG!sted aainst the d!t# 'a#able b# the 'erson on finalisation ofassessment and where an# s!r'l!s is left after s!ch adG!stment, the amo!nt ofs!ch s!r'l!s shall either be credited to the /!nd or, as the case ma# be,ref!nded to the 'erson who has borne the incidence of s!ch amo!nt, inaccordance with the 'ro@isions of section 2 and the a''lication !nder thatsection in s!ch cases shall be made before the e?'ir# of si? months from the

date of the '!blic notice to be iss!ed b# the 23[Assistant 0ommissioner of0!stoms or De'!t# 0ommissioner of 0!stoms].

;CA!TER >"A @ INDICATIN: AMOUNT O DUT$ IN !RICE O :OODS,ETC%, OR !UR!OSE O RE"UND

2 CapplicantC means a non*resident settin !' a Goint @ent!re in (ndia incollaboration with a non*resident or resident, or a resident settin !' a Goint@ent!re in (ndia in collaboration with a non*resident, maEin a''lication

=d> CapplicationC means an a''lication made to the a!thorit# !nder s!b*section=1> of section 2:

=e> Ca+thorit-C means the a!thorit# for ad@ance r!lin constit!ted !nder section2:/


23/25

=f> CchairpersonC means the 0hair'erson of the a!thorit#

=> C(e(.erC means a member of the a!thorit# and incl!des the chair'ersonand

=h> Cnon"resi'entC shall ha@e the meanin assined to it in cla!se =34> of section2 of the (ncome %a? Act, 1961 =;3 of 1961>.

2 %he 0entral 7o@ernment shall 'ro@ide the a!thorit# with s!ch officers andstaff as ma# be necessar# for the efficient e?ercise of the 'owers of the a!thorit#!nder this Act.

=5> %he office of the a!thorit# shall be located in Delhi.

2acancies, etc% not to inali'ate procee'insNo 'roceedin before, or 'rono!ncement of ad@ance r!lin b#, the a!thorit#!nder this 0ha'ter shall be B!estioned or shall be in@alid on the ro!nd merel# ofthe e?istence of an# @acanc# or defect in the constit!tion of the a!thorit#.

2 classification of oods !nder the 0!stoms %ariff Act, 195

=b> a''licabilit# of a notification iss!ed !nder s!b*section =1> of section 25,ha@in a bearin on the rate of d!t#

=c> the 'rinci'les to be ado'ted for the '!r'oses of determination of @al!e of theoods !nder the 'ro@isions of this Act.

=3> %he a''lication shall be made in B!adr!'licate and be accom'anied b# a feeof two tho!sand fi@e h!ndred r!'ees.


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=;> An a''licant ma# withdraw his a''lication within thirt# da#s from the date ofthe a''lication.

2


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bindin onl#,*

=a> on the a''licant who had so!ht it

=b> in res'ect of an# matter referred to in s!b*section =2> of section 2:

=c> on the 0ommissioner of 0!stoms, and the c!stoms a!thorities s!bordinate tohim, in res'ect of the a''licant.

=2> %he ad@ance r!lin referred to in s!b*section =1> shall be bindin as aforesaid!nless there is a chane in law or facts on the basis of which the ad@ance r!linhas been 'rono!nced.

2 here the a!thorit# finds, on a re'resentation made to it b# the0ommissioner of 0!stoms or otherwise, that an ad@ance r!lin 'rono!nced b# it!nder s!b*section =6> of section 2:*( has been obtained b# the a''licant b# fra!dor misre'resentation of facts, it ma#, b# order, declare s!ch r!lin to be @oid abinitio and there!'on all the 'ro@isions of this Act shall a''l# =after e?cl!din the'eriod beinnin with the date of s!ch ad@ance r!lin and endin with the date of

order !nder this s!b*section> to the a''licant as if s!ch ad@ance r!lin had ne@erbeen made.

=2> A co'# of the order made !nder s!b*section =1> shall be sent to the a''licantand the 0ommissioner of 0!stoms.

2 %he a!thorit# shall, for the '!r'ose of e?ercisin its 'owers reardindisco@er# and ins'ection, enforcin the attendance of an# 'erson and e?amininhim on oath, iss!in commissions and com'ellin 'rod!ction of booEs of acco!ntand other records, ha@e all the 'owers of a ci@il co!rt !nder the 0ode of 0i@il$roced!re, 194: =5 of 194:>.

=2> %he a!thorit# shall be deemed to be a ci@il co!rt for the '!r'oses of section195, b!t not for the '!r'oses of 0ha'ter 8( of the 0ode of 0riminal $roced!re,193 =2 of 19;>, and e@er# 'roceedin before the a!thorit# shall be deemed tobe a G!dicial 'roceedin within the meanin of sections 193 and 22:, and for the'!r'ose of section 196, of the (ndian $enal 0ode =;5 of 1:64>.

2

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