Confiscation of improperly imported goods, etc. [Section 111]:
The following goods brought from a place outside India shall be liable to confiscation. They are improperly imported goods:
(a) any goods imported by sea or air which are unloaded or attempted to be unloaded at any place other than a customs port or customs airport appointed under clause (a) of section 7 for the unloading of such goods;
(b) any goods imported by land or inland water through any route other than a route specified in a notification issued under clause (c) of section 7 for the import of such goods;
(c) any dutiable or prohibited goods brought into any bay, gulf, creek or tidal river for the purpose of being landed at a place other than a customs port;
(d) any goods which are imported or attempted to be imported or are brought within the Indian customs waters for the purpose of being imported, contrary to any prohibition imposed by or under this Act or any other law for the time being in force;
(e) any dutiable or prohibited goods found concealed in any manner in any conveyance;
(f) any dutiable or prohibited goods required to be mentioned under the regulations in an import manifest or import report which are not so mentioned;
(g) any dutiable or prohibited goods which are unloaded from a conveyance in contravention of the provisions of section 32, other than goods inadvertently unloaded but included in the record kept under sub-section (2) of section 45;
(h) any dutiable or prohibited goods unloaded or attempted to be unloaded in contravention of the provisions of section 33 or section 34;
(i) any dutiable or prohibited goods found concealed in any manner in any package either before or after the unloading thereof;
(j) any dutiable or prohibited goods removed or attempted to be removed from a customs area or a warehouse without the permission of the proper officer or contrary to the terms of such permission;
(k) any dutiable or prohibited goods imported by land in respect of which the order permitting clearance of the goods required to be produced under section 109 is not produced or which do not correspond in any material particular with the specification contained therein;
(l) any dutiable or prohibited goods which are not included or are in excess of those included in the entry made under this Act, or in the case of baggage in the declaration made under section 77;
(m) any goods which do not correspond :-
- in respect of value or in any other particular with the entry made under this Act or
- in the case of baggage with the declaration made under section 77 in respect thereof, or
- in the case of goods under transhipment, with the declaration for transhipment referred to in the proviso to sub-section (1) of section 54;
(n) any dutiable or prohibited goods transitted with or without transhipment or attempted to be so transitted in contravention of the provisions of Chapter VIII;
(o) any goods exempted, subject to any condition, from duty or any prohibition in respect of the import thereof under this Act or any other law for the time being in force, in respect of which the condition is not observed unless the non-observance of the condition was sanctioned by the proper officer;
(p) any notified goods in relation to which any provisions of Chapter IVA or of any rule made under this Act for carrying out the purposes of that Chapter have been contravened.
Relevant case laws:
1. The word “prohibition” used in clause (d) not only takes within its fold total prohibition, but also restrictions or controls of all imports and exports.
[Sheikh Mohd. Omer v. CC 1983 (13) ELT 1439 (SC)]
2. If the goods are imported from countries other than those permitted in the license, such import would be without license, conferring jurisdiction on the customs authorities to confiscate the goods under section 111 (d).
[CC & CE vs. Hindustan Motors Ltd 1979 ELT J313 (Cal)].
3. Prior to 1973, clause (m) provided for confiscation of goods that did not correspond with the bill of entry in any material particular. By Act 36 of 1973, this was amended to include “value” and “any other particular”. Therefore, prior to amendment, any difference in value between the bill of entry and value as found by the department cannot be said to be variation in material particular within the meaning of this clause.
[Rib Tapes (India) Pvt. Ltd & Anr v. UOI and Others 1986 (26) E.L.T. 193 (S.C.)]
4. In Jacsons Thevara v. CC & CE 1992 (61) ELT 343 (SC) , the importer had cleared goods under project imports regulations and concessional assessment under heading no. 84.66 of the Customs Tariff. Subsequently, these goods were diverted to a new unit and were not used for substantial expansion of capacity at the existing unit. Since the post importation conditions of exemption had not been complied with, the goods were confiscated after due process of law. This was upheld by the Supreme Court rejecting the contention of the appellant that the provisions of the clause (o) would apply only to exempt goods and not to goods which were liable to duty.