When the Directorate of Revenue Intelligence executes a search, when containers are detained at port, or when personal penalty notices arrive — AMLEGALS provides immediate, structured defence under the Customs Act 1962, from the first seizure memo through provisional release, adjudication, and appellate litigation.
Customs enforcement in India operates under expansive statutory powers: search without warrant (Section 105), seizure on reasonable belief (Section 110), arrest without warrant (Section 104), and compulsory statement recording (Section 108). The DRI, Special Intelligence and Investigation Branch (SIIB), Preventive Commissionerates and Marine units can act simultaneously — and a delayed or inadequate initial response can convert a regulatory dispute into a criminal case.
The first 48 hours after seizure define the trajectory of the entire matter. Whether the goods can be provisionally released, whether statements recorded are admissible, whether the bond quantum is proportionate, and whether the matter stays in the civil-penalty track or escalates to prosecution — these outcomes depend on the quality of legal response at the enforcement stage.
AMLEGALS maintains a response-ready enforcement practice: immediate mobilisation for seizure situations, structured representation before adjudicating authorities, bail applications in criminal courts, and appellate litigation through CESTAT and High Courts. The objective is containment and resolution — not escalation.
Immediate response to seizure under Section 110: representation for provisional release under Section 110A, bond and security negotiation, challenge to delayed or disproportionate seizure, and High Court writ petitions where provisional release is unreasonably refused. Includes preparation of inventories, valuation disputes on bond amount, and challenge to extending the six-month SCN period.
Defence in confiscation proceedings under Sections 111 (import) and 113 (export): challenging the grounds of confiscation, establishing bona fide purchase, demonstrating compliance with conditions, and negotiating redemption fine under Section 125. Appeals before Commissioner (Appeals), CESTAT and High Courts against confiscation orders.
Defence against personal penalties under Section 112 (penalty for improper importation), Section 114 (penalty for attempted export of prohibited goods), Section 114A (penalty equal to duty in fraud cases) and Section 114AA (penalty for use of false or incorrect material). Includes challenging the element of mens rea, contesting the quantum, and establishing mitigating circumstances.
Representation during DRI investigations: response to summons under Section 108, safeguarding rights during search and seizure operations (Section 105), challenging the legality of recorded statements, and defending against show cause notices issued following intelligence-based operations. Includes coordination with other agencies (ED, CBI) in multi-agency investigations.
Defence in criminal prosecution under Sections 132 (false declaration, fraudulent claims) and 135 (evasion of duty, prohibited goods): bail applications before Magistrate and Sessions Courts, quashing petitions before High Courts under Section 482 CrPC / Section 528 BNSS, trial defence, compounding applications, and plea negotiations where appropriate.
Defence in baggage disputes under the Baggage Rules 2016: seizure of personal effects, gold and jewellery, currency and negotiable instruments (FEMA and COFEPOSA intersection), show cause notice defence, and redemption proceedings. Includes COFEPOSA detention challenges through habeas corpus before High Courts.
Defence against allegations of fraudulent drawback claims, overvaluation of exports, misdeclaration of quantity or description, and fictitious exports. Includes proceedings under Section 75 (drawback), Section 76 (drawback on re-export), challenges to Directorate of Drawback orders, and coordination with DGFT on IEC suspension proceedings.
| Section | Contravention | Maximum penalty | Threshold |
|---|---|---|---|
| Section 112 | Improper importation | Up to the value of goods, or ₹5,000 — whichever is greater | Knowledge or reason to believe goods liable to confiscation |
| Section 114 | Attempted prohibited export | Up to three times the value of goods | Attempt to export prohibited goods |
| Section 114A | Fraud, suppression, wilful misstatement | Penalty equal to duty not levied or short-levied | Collusion, wilful misstatement, suppression of facts |
| Section 114AA | False or incorrect material | Up to five times the duty | Use of false or incorrect material for duty purpose |
| Section 117 | Residuary penalty | Up to ₹1 lakh | Contravention not specifically penalised elsewhere |
Penalty amounts and thresholds are as per the Customs Act 1962 (as amended by Finance Acts up to 2025). Redemption fine under Section 125 is additional and determined at the discretion of the adjudicating authority.
Under Section 110 of the Customs Act 1962, a proper officer who has reason to believe that goods are liable to confiscation under the Act may seize such goods. The officer must record reasons for the seizure in writing. A show cause notice must be issued within six months of seizure (extendable by another six months by the Commissioner with reasons recorded in writing). If no notice is issued within the prescribed period, the goods must be returned to the person from whose possession they were seized.
Section 110A of the Customs Act 1962 empowers the adjudicating authority to order provisional release of seized goods pending adjudication, on execution of a bond with security. The bond amount is typically 100% of the assessed value plus applicable duty. The Supreme Court in Vaman Narain Agarwal (2020) and subsequent decisions has held that provisional release should not be refused merely because investigation is pending. High Courts have also granted provisional release through writ jurisdiction where the adjudicating authority unreasonably delays.
Penalties in preventive cases include: confiscation under Section 111 (imported goods) or Section 113 (export goods); personal penalty under Section 112 (up to the value of goods); penalty under Section 114A equal to the duty evaded in cases of fraud, suppression or wilful misstatement; penalty under Section 114AA (up to five times the duty) for use of false or incorrect material; and redemption fine under Section 125 in lieu of confiscation. Criminal prosecution under Sections 132 and 135 can additionally result in imprisonment up to seven years.
The Directorate of Revenue Intelligence (DRI) is the apex intelligence and enforcement body for customs matters. DRI officers exercise powers under the Customs Act 1962 including search (Section 105), seizure (Section 110), arrest (Section 104) and recording of statements (Section 108). DRI investigations typically involve intelligence gathering, surveillance, coordinated searches, statement recording, quantification of duty demand, and issuance of show cause notices. The Supreme Court in Canon India (2021) examined the scope of DRI's authority to issue SCNs — subsequent legislative amendments (Finance Act 2022) restored DRI officers as proper officers for this purpose.
Yes, Section 104 of the Customs Act 1962 empowers a customs officer (not below the rank of Deputy Commissioner) to arrest a person if there is reason to believe that the person has been guilty of an offence punishable under Sections 132 or 135. For offences with duty evasion below ₹50 lakh, the offences are bailable. For offences involving duty evasion of ₹50 lakh or more (or involving prohibited goods, fraudulent drawback), the offences are non-bailable. The arrested person must be produced before a magistrate within 24 hours.
Confiscation (Sections 111 and 113) is an in rem proceeding against the goods — the goods vest in the Central Government upon confiscation. The owner may be given an option to pay redemption fine (Section 125) in lieu of confiscation and redeem the goods. Penalty (Sections 112, 114A, 114AA) is an in personam proceeding against the person — it is a monetary liability on the person responsible for the contravention. Both can be imposed simultaneously. Confiscation requires the goods to be liable to confiscation; penalty requires personal involvement in the contravention.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing.
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