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?

[Rajagopalan Ranganathan]

Sir,

Seizure is valid only when the offended goods are seized under a mahazhar attested by two independent witness. Therefore mere letter stating seizure is not a valid seizure and subsequent issue of show cause notice and adjudication based on such notice is non-est in the eye of law.DRI has the power to seize the offending goods under mahazhar. I do not come across any provision under Customs Act for taking an undertaking from the importer.

[YAGAY andSUN]

Section 110 of the Customs Act empowers Customs Officer to seize the goods if he has reason to believe that such goods are liable for confiscation under Customs Act. Vehicle carrying the contraband goods can also be seized. If goods are bulky then it can be kept in possession of the owner himself and a notice be served on him that he should not remove or in any way with the goods (proviso to section 110 (1) of Customs Act.)

DRI can seizure the goods. However, mere letter stating the seizure is not valid unless until it is witnessed by Panch. CBIC vide Circular No. 1/2017-Cus dtd 08-02-2017 has issued instructions for seizure of goods.

AI Summary

Seizure under Customs Act: mahazhar and witness attestation required; mere letters insufficient, DRI may seize. Validity of seizure under the Customs Act depends on compliance with evidentiary and procedural safeguards: an officer may seize goods believed liable for confiscation and bulky goods may remain with the owner under notice, but a seizure must be recorded in a mahazhar attested by two independent witnesses; mere letters are insufficient and no statutory provision substitutes an undertaking from the importer.