• Power to declare places of

warehousing station
• Appointment of boarding station
CUSTOMS ACT 1962 •

•
Prohibition on importation and
exportation of goods
Levy of exemption from custom
duties
 SECTION 9

The Board ay, by notification official gazette

declare places to be warehousing stations at
which alone public warehouses may be
appointed and private warehouses may be
licensed.
 SECTION 10

The [Commisssioner of customs] may by

notification in the official gazette , appoint,in
or near any customs court, aboarding station
for the purpose of boarding of, or
disembarkation from , vessels by officers of
customs.
 SECTION 11
Board can prohibit specific goods for reason of
Security
Morality
Law & order
Antismuggling
Forex Consrvn
Protection of Life, Patent, trademarks,industry
Fulfiling international obligation
Prevention of Contravention of Law
Conserve resource etc
 CHAPTER - IVA /IVB DETECTION OF ILLEGALLY
IMPORTED /EXPORTED GOODS AND PREVENTION OF
THE DISPOSAL THEREOF
•Govt can notify smuggling prone goods to strictly monitor their import.
•people handling them need to intimate place of storage, maintain accounts
properly and sell against proper vouchers.
 Notified goods imported for personal use are not affected by these sections.
Also certain class of goods may be exempted from this if government thinks
fit( Chapter IVC)

Sec 11A- 11G and 11H-11M and 11N

 CHAPTER - V LEVY OF, AND EXEMPTION
FROM, CUSTOMS DUTIES
SECTION 12. Dutiable goods. –
 Except as otherwise provided in this Act, or any other
law for the time being in force, duties of customs shall
be levied at such rates as may be specified under the
Customs Tariff Act, 1975 (51 of 1975)], or any other
law for the time being in force, on goods imported into,
or exported from, India.
Charging sec. Most imp
SECTION 14. Valuation of goods
Transaction value, the price actually paid or payable
for the goods when sold for export to India for
delivery at the time and place of importation, or as
the case may be, for export from India for delivery at
the time and place of exportation, where the buyer
and seller of the goods are not related and price is the
sole consideration for the sale subject to such other
conditions as may be specified in the rules made in
this behalf :
We shall treat them in greater detail in our session on
Valuation.
 CHAPTER - V LEVY OF, AND EXEMPTION
FROM, CUSTOMS DUTIES
Sec 17: Assessment Sec18 Prov. Assmt
Imp/exp self assessment Importer unable to assess and requests for
assessment by AO or
Assessing officer may call for documents, AO feels test necessary
test, verify
Or AO deems necessary to make further
If self assmt found wrong— AO can inquiry in case all documents produced or not
Reassess after following Natural justice produced
and pass speaking order.
PA is ordered with security to cover prov and
If no re assessment , AO may audit such final assmt
transactions afterwards.

Sec 18(2): When PA is finalised, for Home consumption clearance-difference is paid or refunded. For Wh goods, importer executes bond
covering twice the difference
 CHAPTER - V LEVY OF, AND EXEMPTION
FROM, CUSTOMS DUTIES
Sec 18 contd
 18(3,4)
Interest to be paid by either party if
amount not settled within month of
finalisation.
18(5)
Refund amount goes to Welfare fund if
difference passed on,/goods for
personal use, /diff. relates to DBK,
Power to exempt
 Sec 25
 By notification (absolutely of subject to
conditions to be flfilled) from whole of
part of duty leviable as per tariff.
 By spl order , casewise
 NO duty if liability upto Rs 100.
Clarification can be inserted within one
yr of notificn.
 CHAPTER - V LEVY OF, AND EXEMPTION FROM,
CUSTOMS DUTIES
REFUND

• Of export duty if paid •Of import duty (SEC 26A)

(sec 26)
• If goods returned to exporter except
re sale.
• If goods re imported within one yr
•Defective goods not worked upon,
identified by AC as imported one and
exported or title relinquished or
destroyed or declared of NCV within
30days of clearance

• Application within six months of

clearance order.
 CHAPTER - V LEVY OF, AND EXEMPTION FROM,
CUSTOMS DUTIES
REFUND CONTD
Application to be made within 6 month Sec 27
of relevant date
Refund claim(duty or interest): to AC
No refund for perishable goods beyond within 1 yr of payment
shelf life.
Refund amount goes to Welfare fund if
difference passed on,/goods for
personal use, /DBK is permissible for the
case
Sec 27A 28D: incidence presumed to be passed
Interest payable on refund delayed on unless proved OW
beyond 3 months
 CHAPTER - V LEVY OF, AND EXEMPTION FROM,
CUSTOMS DUTIES
SECTION 28. Recovery of duties not levied or short-levied or erroneously refunded

Non/short levy/erroneous refund (not Non/short levy/erroneous refund for

for any offence)
Demand notice within a year of relevant
date(duty and interest).
If dues paid before demand and
informed-- no notice if appropriate
officer finds it alright. If found short
again , notice for difference to be
issued..
fraud, collusion, wilful
misstatement/suppression-
Demand within 5 yrs with interest
(28AA) and penalty demand.
 If everything is paid(with 25% of duty
demanded as penalty), matter concludes
after the officer checks and finds all
satisfactory. OW demand for the
differential.
Interest payable even if not expressly
demanded.
CASE LAWS