Customs Act, 1962 Section 108a — Obligation to furnish information
Customs Act, 1962 · Obligation to furnish information
Plain-English Explanation
Overview
Section 108A of the Customs Act, 1962 mandates specific entities to furnish information relevant to customs activities to the proper officer. This section aims to improve information sharing and transparency, enabling customs authorities to effectively prevent duty evasion and enforce compliance. It ensures that various organizations holding relevant data cooperate in the enforcement of customs laws.
Who Does This Apply To?
This section applies to a broad range of entities, including:
- (a) Local authorities (e.g., municipalities) and other public bodies or associations.
- (b) State Government authorities responsible for collecting Value Added Tax (VAT), sales tax, or any other tax on goods or services.
- (c) Income-tax authorities appointed under the Income-tax Act, 1961.
- (d) Banking companies as defined in Section 45A(a) of the Reserve Bank of India Act, 1934.
- (e) Co-operative banks as defined in Section 2(dd) of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
- (f) Financial institutions and non-banking financial companies as defined in Section 45-I of the Reserve Bank of India Act, 1934.
- (g) State Electricity Boards and electricity distribution or transmission licensees under the Electricity Act, 2003.
- (h) Registrars or Sub-Registrars appointed under Section 6 of the Registration Act, 1908.
- (i) Registrars within the meaning of the Companies Act, 2013.
- (j) Registering authorities empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988.
- (k) Collectors as referred to in Section 3(c) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
- (l) Recognised stock exchanges as referred to in Section 2(f) of the Securities Contracts (Regulation) Act, 1956.
- (m) Depositories as referred to in Section 2(1)(e) of the Depositories Act, 1996.
- (n) Post Master Generals as defined in Section 2(j) of the Indian Post Office Act, 1898.
- (o) Director General of Foreign Trade as defined in Section 2(d) of the Foreign Trade (Development and Regulation) Act, 1992.
- (p) General Managers of Zonal Railways as defined in Section 2(18) of the Railways Act, 1989.
- (q) Officers of the Reserve Bank of India constituted under Section 3 of the Reserve Bank of India Act, 1934.
How It Works
- Obligation to Furnish: These entities are obligated to provide information considered relevant for the purposes of the Customs Act to the "proper officer." This includes data related to registration records, statements of accounts, or any other information maintained under relevant laws.
- Manner of Furnishing: The information must be furnished in the manner prescribed by rules made under the Customs Act. This includes the format and frequency of reporting.
- Defective Information: If the proper officer finds the information provided to be defective, they will notify the entity and provide an opportunity to rectify the defect within seven days of the intimation, or within an extended period granted upon application.
- Consequences of Non-Rectification: If the defect is not rectified within the stipulated timeframe, the information is deemed as not furnished, and the consequences under the Customs Act will apply.
- Notice for Non-Compliance: If an entity fails to furnish information within the specified timeframe, the proper officer can serve a notice requiring them to furnish the information within a period not exceeding 30 days from the date of the notice.
Important Conditions & Exceptions
- Condition 1: The information requested must be "relevant for the purposes" of the Customs Act. This ensures that the information sought has a direct bearing on customs-related matters, such as valuation, classification, or origin.
- Condition 2: The entity must be "responsible for maintaining record of registration or statement of accounts or holding any other information" under relevant laws. The section targets entities in a position to provide reliable and authentic data.
- Exception: There are no explicit exceptions mentioned in the text. However, if an entity can demonstrate that it does not hold information relevant to the Customs Act, it may not be subject to this obligation.
Practical Example
A bank notices a series of large cash deposits into an account held by a company involved in importing electronics. The aggregate deposits total ₹5 Crore over a three-month period. Under Section 108A, the bank is obligated to furnish this information to the customs authorities if they suspect that this transaction could be linked to undeclared imports or duty evasion. They would furnish the account statements and deposit details to the proper officer in the prescribed format.
Key Amendments
No major amendments since enactment.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
Who is obligated to furnish information under Section 108A of the Customs Act, 1962?
Section 108A(1) specifies a wide range of entities, including local authorities, state government tax authorities, income tax authorities, banking companies, cooperative banks, financial institutions, electricity boards, registrars (under the Registration Act and Companies Act), motor vehicle registering authorities, land acquisition collectors, stock exchanges, depositories, post master generals, the Director General of Foreign Trade, Zonal Railway General Managers, and officers of the Reserve Bank of India. These entities are obligated if they maintain records relevant to the purposes of the Customs Act.
What kind of information are entities required to furnish under Section 108A of the Customs Act, 1962?
Entities are required to furnish information related to records of registration, statements of accounts, or any other information maintained under various Acts (specified in Section 108A(1)) or any other law in force, that is considered relevant for the purposes of the Customs Act, 1962. The specific type of information will depend on the context and the requirements prescribed by rules made under the Act.
What happens if the information furnished under Section 108A is considered defective by the customs officer?
If the proper officer finds the information defective, Section 108A(2) mandates that they must inform the person who provided the information about the defect. The person then has seven days (or a longer period if granted by the officer upon application) to rectify the defect; if the defect isn't rectified within this period, the information is deemed not furnished, and the provisions of the Customs Act apply accordingly.
What is the consequence of not furnishing information within the specified time under Section 108A of the Customs Act, 1962?
If a person fails to furnish the required information within the time specified in Section 108A(1) or 108A(2), the proper officer can issue a notice under Section 108A(3) demanding the information be furnished within a period not exceeding thirty days from the date of service of the notice. Failure to comply with this notice can result in penalties and actions as per other provisions of the Customs Act, 1962.
How is the information to be furnished under Section 108A, and are there any specific rules prescribing the manner?
Section 108A(1) states that the information must be furnished to the proper officer in the manner prescribed by rules made under the Customs Act, 1962. Taxpayers should refer to the relevant rules and notifications issued under the Act to understand the specific format, mode of transmission (e.g., electronically or physically), and other procedural requirements for furnishing the information.
What is the purpose of Section 108A in the context of customs law?
Section 108A aims to enhance transparency and information sharing to facilitate effective customs administration. By obligating various entities to provide relevant information, it enables customs authorities to better detect and prevent illegal activities such as smuggling, undervaluation, and other forms of customs fraud, thereby safeguarding revenue and national security.
Are there any penalties for non-compliance with Section 108A of the Customs Act, 1962?
While Section 108A does not explicitly state a specific penalty, failure to furnish information as required will deem the information to not have been furnished. This triggers other provisions of the Customs Act, 1962, which may include penalties or other legal actions, depending on the nature of the offence and the relevant provisions of the Act dealing with failure to provide requested information.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Applicability based on entity type | Section 108A applies to specific entities like local authorities, banks, financial institutions, electricity boards, registrars, stock exchanges, post offices, DGFT, zonal railways and RBI officers. |
| Information must be relevant | The information maintained by these entities must be considered relevant for the purposes of the Customs Act, 1962. |
| Manner of furnishing information | Information is to be furnished to the proper officer as prescribed by rules made under the Customs Act. |
| Opportunity to rectify defects | If the information is defective, the officer gives seven days (or more, if extended) to rectify the defects, or information is deemed not furnished. |
| Notice for non-furnishing of information | If information is not furnished, a notice may be served requiring the person to furnish within 30 days of the notice. |
| Obligation to Furnish Information | Designated entities maintaining records relevant to Customs Act must furnish information to the proper officer. |
Amendment History
Inserted (w.e.f. 1-7-2017 vide Notification No. 25/2017-Cus., dated 28-6-2017) by s. 2 of the Taxation Laws (Amendment) Act, 2017 (18 of 2017).