seizure and confiscation under Customs Act

[Muthukumar Muthunarasimhan]

Dear Experts,

When the seizure is valid as per the Customs Act? DRI can seizure the machinery without obtaining undertaking from the importer is valid seizure? Mere letter stating the seizure is valid in the eyes of law? In such situation confiscation is also valid in subsequent show cause notice issued for adjudication?

AI Summary

Can the DRI Seize Machinery Without Importer Undertaking? Valid Seizure Requires Mahazhar Under Customs Act Section 110. A discussion on the validity of seizures under the Customs Act raised questions about whether the Directorate of Revenue Intelligence (DRI) can seize machinery without an undertaking from the importer. It was clarified that a valid seizure requires a mahazhar, witnessed by two independent parties, and a mere letter is not sufficient. The Customs Act, specifically Section 110, allows officers to seize goods believed to be liable for confiscation, including vehicles carrying contraband. The DRI can seize goods, but proper procedures, as outlined in CBIC Circular No. 1/2017, must be followed for the seizure to be legally valid.