Customs Act, 1962 Section 108 — Power to summon persons to give evidence and produce documents
Customs Act, 1962 · Power to summon persons to give evidence and produce documents
Plain-English Explanation
Overview
Section 108 of the Customs Act, 1962 grants significant powers to Gazetted Officers of Customs to summon individuals for providing evidence or producing documents relevant to ongoing inquiries. This section is crucial for customs officials to effectively investigate potential violations of customs laws, ensuring proper revenue collection and compliance.
Who Does This Apply To?
This section potentially impacts a wide range of individuals and businesses:
- Any person deemed necessary by a Gazetted Officer of Customs to provide evidence or produce documents. This includes importers, exporters, clearing agents, transportation companies, and any other party that may possess information relevant to a customs inquiry.
- Specifically applies to officers who are Gazetted officers of customs.
How It Works
The process under Section 108 unfolds as follows:
- Initiation of Inquiry: A Gazetted Officer of Customs initiates an inquiry under the Customs Act, 1962, if they suspect a violation of customs laws.
- Issuance of Summons: If the officer believes a person's testimony or documents are essential to the inquiry, they can issue a summons. This summons mandates the person's attendance to give evidence or produce specific documents.
- Scope of Summons: The summons can require the production of:
- Specified documents (e.g., a specific invoice, shipping bill).
- All documents of a particular description (e.g., all import documents related to textiles from January 2023 to December 2023).
- Obligations of the Summoned Person: The person summoned must comply with the summons. They are required to:
- Attend in person or through an authorized agent (as directed by the officer).
- State the truth on any subject they are examined about.
- Produce the required documents and other things.
- Judicial Proceeding: An inquiry under Section 108 is deemed to be a judicial proceeding within the meaning of Section 193 and Section 228 of the Indian Penal Code, 1860. This means that giving false evidence or obstructing the inquiry can lead to prosecution under the IPC.
Important Conditions & Exceptions
- Condition 1: The officer issuing the summons must be a Gazetted Officer of Customs.
- Condition 2: The officer must consider the person's attendance "necessary" for the inquiry. This implies a reasonable belief that the person has relevant information or documents.
- Exception: The exemption under Section 132 of the Code of Civil Procedure, 1908, regarding personal attendance exemptions, applies to requisitions under Section 108. For example, women who, according to the customs and manners of the country, ought not to be compelled to appear in public are exempt from personal appearance.
Practical Example
A customs officer suspects that an importer, "Textiles India Ltd.," is undervaluing imported fabrics to evade customs duties. The officer issues a summons under Section 108 to the company's CFO, Mr. Sharma, requiring him to produce all invoices and bank statements relating to the import of fabrics from China between January 1, 2023, and December 31, 2023. Mr. Sharma is obligated to comply with the summons, provide the requested documents, and truthfully answer any questions posed by the officer about the transaction values. Failure to do so could result in penalties and potential prosecution under the Indian Penal Code for providing false evidence.
Key Amendments
No major amendments since enactment.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
Who has the power to issue summons under Section 108 of the Customs Act, 1962?
Any Gazetted Officer of Customs is empowered to issue summons under Section 108 of the Customs Act, 1962, if they consider someone's attendance necessary for giving evidence or producing documents/things related to an inquiry under the Act. This power is crucial for customs officials to gather information and evidence related to potential customs violations.
What type of documents can be requested via a summons under Section 108 of the Customs Act?
A summons under Section 108 can request either specific documents/things or all documents/things of a certain description that are in the possession or under the control of the person being summoned. This broad authority allows customs officials to comprehensively investigate potential irregularities.
Am I legally obligated to comply with a summons issued under Section 108 of the Customs Act, 1962?
Yes, individuals summoned under Section 108 are legally bound to attend, either personally or through an authorized agent, as directed by the officer. Furthermore, they must state the truth when examined and produce any requested documents or things, subject to the exemption under section 132 of the Code of Civil Procedure, 1908 (5 of 1908).
What are the legal consequences of not complying with a summons issued under Section 108 of the Customs Act, 1962?
Failure to comply with a summons under Section 108 can lead to prosecution under Section 193 (giving false evidence) and Section 228 (intentional insult or interruption to public servant sitting in judicial proceeding) of the Indian Penal Code, 1860. This is because the inquiry is deemed a judicial proceeding.
Does Section 108 of the Customs Act, 1962, have a time limit for issuing a summons or concluding an inquiry?
Section 108 itself does not specify a time limit for issuing a summons or concluding an inquiry. However, related provisions and general principles of law dictate that investigations should be conducted and concluded within a reasonable timeframe to avoid unnecessary delays and potential prejudice to the concerned parties.
Can I refuse to answer questions during a Section 108 summons if I believe it might incriminate me?
While you are obligated to attend and state the truth under Section 108(3), the applicability of Article 20(3) of the Constitution (protection against self-incrimination) in the context of Customs Act proceedings has been a subject of judicial interpretation. Consult with a legal professional for advice tailored to your specific situation, considering recent case laws.
What is the significance of the inquiry under Section 108 being considered a 'judicial proceeding'?
The classification of an inquiry under Section 108 as a judicial proceeding, as stated in Section 108(4), has several implications. It invokes the provisions of the Indian Penal Code related to false evidence and contempt of court, thus increasing the seriousness of non-compliance and reinforcing the authority of the Customs Officer during the inquiry.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Summoning Authority | Any Gazetted Officer of Customs has the power to issue summons. |
| Purpose of Summons | Summons can be issued to obtain evidence, documents, or other things relevant to an inquiry under the Customs Act. |
| Scope of Document Production | Summons can demand specific documents or all documents of a certain description. |
| Obligation to Attend | Summoned persons are obligated to attend in person or through an authorized agent as directed. |
| Obligation to Truth and Production | Summoned persons must state the truth and produce required documents/things. |
| Exemption under CPC | Exemption under Section 132 of the Code of Civil Procedure, 1908 applies. |
| Judicial Proceeding Status | The inquiry is deemed a judicial proceeding under Section 193 and 228 of the IPC. |
| Nature of Power | The officer considers such attendance necessary in an inquiry. |
Amendment History
Substituted bythe Taxation Laws (Amendment) Act, 2006 (29 of 2006), section 25, for sub-section (1)(w.e.f. 13.07.2006). Sub-section, before substitution, stood as under: "(1) Any gazetted officer of customs shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making in connection with the smuggling of any goods."
The words "duly empowered by the Central Government in this behalf", omitted by the Finance Act, 2008 (18 of 2008), section 69 (w.e.f. 13.07.2006).