© DG Education (P) Ltd [Cus : Powers of Customs Officers]

POWERS OF CUSTOMS OFFICERS:

.

Sec 100 Power to search suspected persons entering or leaving India, etc
Sec 101 Power to search suspected persons in certain other cases
Sec 102 Persons to be searched may require to be taken before gazetted officer of customs or magistrate
Sec 103 Power to screen or X-ray bodies of suspected persons for detecting secreted goods
Sec 104 Power to ARREST
Sec 105 Power to search premises
Sec 106 Power to stop and search conveyance

Sec 106-A Power to Inspect (goods and accounts)

Sec 107 Power to examine persons (during the course of any enquiry in connection with the smuggling of any goods)
Sec 108 Power to summon persons to give evidence or produce documents

Sec 109 Power to require production of ‘out of charge order’

Sec 110 Seizure of (Goods), (Documents, things)

Sec 110-A Provisional release of goods, documents and things seized pending adjudication

Sec 144 Power to take SAMPLES

CUSTOMS OFFICER- CLASSES AND THEIR APPOINTMENT [Sec 3 / 4/ 5/ 6]

1. Write short note on: Classes of Officers of Customs

(3 Marks)
Sec 3 of the Customs Act provides that there shall be the following classes of officers of customs, namely:-
(a) Principal Chief Commissioner of Customs, Chief Commissioners of Customs;
(b) Principal Commissioner of Customs, Commissioners of Customs;
(c) Commissioners of Customs (Appeals);
(d) Joint Commissioners of Customs or Additional Commissioner of Customs;
(e) Assistant Commissioners of Customs or Deputy Commissioner of Customs;
(f) Such other class of officers of customs as may be appointed for the purposes of this Act

2. Explain briefly : Appointment of officer of customs.

(May 2008 - 2 Marks)
Sec 4 of the Customs Act deals with appointment of customs officer.
It provides that CBEC may appoint any person as customs officer*.
Further, CBEC may authorize a Principal Chief Commissioner of Customs or a Chief Commissioner of Customs or a Principal
Commissioner of Customs or a Commissioner of Customs or JC or AC/DC to appoint officers below the rank of AC.

Tutorial Note: Territorial Jurisdiction of various field formations under SBEC

Relevant legal provision Notification No. Impact of Notification
1. Customs Act, 1962 78/2015 It notifies the territorial jurisdiction of different Customs Commissionerates
- Sec 4
2. Central Excise Rules, 2002 27/2014 It notifies the territorial Jurisdiction of different Central Excise Commissionerates.
- Rule 3
3. ST Rules, 1994 20/2014 It notifies territorial Jurisdiction of different Service Tax Commissionerates.
- Rule 3
..
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3. Briefly explain the powers of officers of Customs under section 5 of the Custom Act, 1962.

Sec 5 of the Customs Act deals with powers of Customs officers. It makes following provisions:
 An officer of customs may exercise the powers and discharge the duties conferred or imposed on him under this Act subject to
such conditions and limitations as CBEC may impose*. He may also exercise the powers and discharge the duties conferred or
imposed under this Act on any other officer of customs who is subordinate to him.
 However, a Commissioner (Appeals) shall not exercise the powers and discharge the duties conferred or imposed on an officer of
customs other than following two:
(a) Powers and duties as specified in Chapter XV of Customs Act (Appeals and Revision) and
(b) Powers and duties as specified in section 108 of Customs Act (power to summon persons for giving evidence).
© DG Education (P) Ltd [Cus : Powers of Customs Officers]

4. With reference to section 6 of the Customs Act, 1962 examine briefly whether the CG could entrust any function of the CBEC or
any officers of Customs to any officer of any other department.
(3 Marks)
Sec 6 of the Customs Act, 1962 empowers Central Government to entrust any functions of the CBEC or any officer of customs to
officer of other department. In this regard, following points shall be noted:
(i) The other person to whom such functions may be entrusted shall be either a CG or SG officer or an officer of local authority.
(ii) The entrustment shall be made by issuing a notification in the Official Gazette to that effect.
(iii) Such entrustment can either be conditionally or unconditionally.

POWERS OF CUSTOMS OFFICERS [Sec 100 to 110-A]

5. Write a brief note on the following with reference to the Customs Act, 1962:
(i) Power to search persons under section 100 and section 101.
(3 Marks)
Power to search persons under section 100 & 101: Under Customs Act, 1962, both sec 100 and 101 gives power of search to the
customs officer.
Power of Search u/Sec 100 Power of Search u/Sec 101
Sec 100 provides power of search to the proper officer. Sec 101 provides for search by only by that customs officer
who has been empowered by Principal CC / CC.
Such search can be conducted in relation to any goods. Search under this section is possible only in relation to
specified goods (e.g., Gold, Diamonds, manufactures of gold
and diamonds, watches, other notified goods).
Any person who is in customs area or has landed from board or is There is no restriction as to place of search. The person can be
about to Board or is in Board of either any vessel within Indian searched at any place.
Customs Area or Foreign going aircraft or vehicle or entering India
by any other means can be searched under sec 100 if he has
secreted about his person, any goods liable to confiscation or any
documents relating thereto.

(ii) Power to stop and search conveyance (2 Marks)

Sec 106 of the Customs Act grants power to customs officer to stop and search any conveyance if the proper officer has reason to
believe that any conveyance has been, is being, or is about to be, used in the smuggling of any goods or in the carriage of any goods
which have been smuggled. The officer may, in the case of an aircraft, compel it to land.
The officer can break open any lock of door or package, if key is withheld. If the vessel, aircraft etc, doesn’t stop or land after
giving signals, it may be chased. If it refuses to stop after firing a signal, the vehicle may be fired upon.


6. Explain briefly legal provisions relating to power to SUMMON persons under Customs Act, 1962.
(May 2009 - 2 marks)
Sec 108 of Custom Act, 1962 gives power to any officer (of rank of Gazetted Officer) to issue summon to any person whose
attendance is considered necessary by him either to give evidence or to produce a document or thing in any inquiry made by such
officer.
The person so summoned shall be duty bound to attend either in person or through his authorized agent, as the said officer may
direct. The person so summoned shall be bound to state truth or to make statements and produce the documents/things as may be
required.

7. Mr. Vasu, the assessee, was summoned under section 108 of the Customs Act, 1962, to give his statement in an inquiry. Mr. Vasu,
however, did not appear before the concerned authorities. Instead, he filed the application for anticipatory bail in the District and
Sessions Court which was disposed on the ground of being premature.
Mr. Vasu later moved to the High Court, which granted him anticipatory bail with a direction to the authorities that even if the
Custom Authorities find any non-bailable offence against Mr. Vasu, he shall not be arrested “without 10 days prior notice to him”.
The Revenue contended that the order passed by the High Court was illegal and erroneous.
Explain, with the help of a decided case law, if any, whether the stand taken by the Revenue is sustainable in law?

A similar issue has been dealt by the Supreme Court in the case of PADAM NARAIN AGGARWAL -2008 –SC wherein the Apex Court
has observed that the power to arrest by a Custom Officer under section 104 of the Customs Act, 1962 is statutory in character and
cannot be interfered with.
© DG Education (P) Ltd [Cus : Powers of Customs Officers]

Supreme Court pronounced that the direction to issue 10 days prior notice before arrest even in case of a non-bailable offence could
not be said to be legal or in consonance with law owing to following two reasons:
1) Firstly, the order passed by the High Court was a blanket one and granted protection to respondents in respect of any non- bailable
offence.
2) Secondly, it illegally obstructed, interfered and curtailed the authority of Custom Officers from exercising statutory power of
arresting a person said to have committed a non-bailable offence by imposing a condition of giving 10 days prior notice, a
condition not warranted by law.
.

Therefore, in the given case, it can be concluded that the stand taken by the revenue is sustainable in law.


8. Write short note on: Power to take samples under Section 144 of the Customs Act, 1962.
OR
Explain briefly the provisions of the Customs Act, 1962 relating to the powers vested in the customs officers to take samples.
(3 Marks)
Sec 144 of the Customs Act grants power to customs officer to take samples of any goods (whether imported goods or export goods)
for examination or testing, or for ascertaining the value thereof, or for any other purposes of this Act. Such samples may be taken on
the entry or clearance of any goods or at any time while such goods are being passed through the customs area. But samples shall be
taken in the presence of the owner thereof.
After the purpose for which a sample was taken is carried out, such sample shall, if practicable, be restored to the owner. But if
the owner fails to take delivery of the sample within 3 months of the date on which the sample was taken, it may be disposed off.
Further, no duty shall be chargeable on any sample of goods taken under this section which is consumed or destroyed during the
course of any test or examination thereof.

Note:
• Major Purpose of taking samples:
1) Determination of correct classification of product;
2) Ascertainment of valuation of product;
3) Determination as to whether it is freely importable under Foreign Trade Policy or whether authorization is required for importing those
goods.