Customs Act, 1962 Section 119 — Confiscation of goods used for concealing smuggled goods
Customs Act, 1962 · Confiscation of goods used for concealing smuggled goods
Plain-English Explanation
Overview
Section 119 of the Customs Act, 1962, allows for the confiscation of goods used to conceal smuggled items. The intent is to deter smuggling by penalizing the use of any accessory for hiding illegal imports or exports, separate from the smuggled goods themselves. However, it explicitly excludes conveyances (vehicles) from being considered "goods" under this section.
Who Does This Apply To?
This section primarily applies to:
- Individuals or entities involved in importing or exporting goods.
- Customs officers tasked with enforcing the Customs Act, 1962.
- Importers attempting to conceal smuggled goods within other items.
How It Works
The mechanism of Section 119 can be broken down as follows:
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Identification of Concealment: Customs officials must first identify goods used to conceal other, smuggled items. This means there must be a deliberate act of hiding or disguising the smuggled goods.
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Confiscation Proceedings: If concealment is established, the goods used for concealment are liable to confiscation. This process would typically involve the issuance of a show cause notice, opportunity for the accused to present their case, and a final adjudication order.
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"Goods" Defined: Crucially, the Explanation to Section 119 clarifies that "goods" does not include a conveyance used as a means of transport. This means a truck, ship, or aircraft used to smuggle goods is not subject to confiscation under this specific section (Section 119). Other sections of the Customs Act may still allow for the confiscation of the conveyance itself.
Important Conditions & Exceptions
- Condition 1: The seized item must have been actually used for concealing smuggled goods. Mere possession of an item capable of being used for concealment is likely insufficient.
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Condition 2: The confiscated goods used for concealment must be separate from the smuggled goods themselves. For example, if gold is dissolved within a chemical compound, the chemical compound itself isn’t being used for concealment; it is the smuggled good.
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Exception: As stated, conveyances (vehicles, ships, aircraft) used for transportation are expressly excluded from the definition of "goods" under this section's Explanation.
Practical Example
An importer, M/s XYZ Traders, declares a shipment of machinery parts. However, customs officers discover that within the hollowed-out axles of the machinery, gold bars worth ₹50,00,000 have been concealed.
In this case:
- The gold bars are the smuggled goods.
- The machinery axles (parts) are goods used for concealing the smuggled goods.
Therefore, under Section 119, the machinery axles (the concealing goods) are liable to confiscation, in addition to any penalties or confiscation orders that may be imposed on the gold bars themselves. If the entire machinery consignment was valued at ₹20,00,000, M/s XYZ Traders could lose that entire amount as well.
Key Amendments
No major amendments since enactment.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
What types of goods are subject to confiscation under Section 119 of the Customs Act, 1962?
Section 119 of the Customs Act, 1962, allows for the confiscation of any goods used to conceal smuggled goods. The key consideration is whether the goods were *used* for concealment, regardless of their inherent value or purpose. Importantly, the Explanation to Section 119 clarifies that this *does not* include conveyances (vehicles, ships, aircraft) used to transport the smuggled goods; those are covered under other sections.
If goods are confiscated under Section 119, does the owner have any recourse or appeal options?
Yes, the owner of goods confiscated under Section 119 of the Customs Act, 1962, has the right to appeal the confiscation order. The appeal process typically begins with the Commissioner of Customs (Appeals), and further appeals can be made to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and subsequently to the High Court and Supreme Court, based on applicable jurisdictional rules. The appeal must be filed within the prescribed time limit, which is generally three months from the date of the confiscation order (Section 128A).
How does Section 119 of the Customs Act, 1962, differ from Section 115 regarding confiscation?
Section 119 specifically addresses the confiscation of *goods* used for concealing smuggled items, explicitly excluding conveyances. Section 115, on the other hand, deals with the confiscation of the smuggled goods themselves and any other goods mixed with them. Therefore, Section 119 targets the means of concealment, while Section 115 targets the smuggled items and any mixture.
Are there any penalties associated with having goods confiscated under Section 119 of the Customs Act, 1962, beyond the loss of the goods themselves?
While Section 119 primarily concerns the confiscation of goods used for concealment, the act of smuggling itself carries significant penalties under other sections of the Customs Act, 1962. These penalties can include fines, imprisonment, and additional confiscation orders directed at the smuggled goods. The severity of the penalties depends on the value and nature of the smuggled goods, and the intent of the individual involved.
What constitutes 'use for concealing' under Section 119 of the Customs Act, 1962? Provide an example.
'Use for concealing' implies an active role in hiding or masking the smuggled goods. For instance, if someone constructs a false bottom in a suitcase to hide gold bars, the suitcase would be subject to confiscation under Section 119. The key is that the goods (in this case, the suitcase) were specifically adapted or employed to facilitate the concealment of the smuggled goods.
Can packaging materials like boxes or wrapping paper be confiscated under Section 119 of the Customs Act, 1962?
Yes, packaging materials such as boxes, wrapping paper, or other containers that are *specifically* used to conceal smuggled goods can be confiscated under Section 119. The crucial factor is the direct link between the packaging and the act of concealment. Ordinary packaging used without intent to hide goods is less likely to be confiscated.
Is there a time limit within which customs authorities must initiate confiscation proceedings under Section 119 of the Customs Act, 1962?
While the Customs Act, 1962, doesn't prescribe a specific time limit for *initiating* confiscation proceedings, the principle of 'reasonable time' applies. Undue delay in initiating proceedings could prejudice the case of the Customs Department, and courts may consider the delay when assessing the legality of the confiscation order. However, the limitation for adjudication/issuing show cause notice is specified under section 124.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Applicability | Section 119 applies to any goods used to conceal smuggled goods. |
| Confiscation Penalty | Goods used for concealing smuggled items are liable to confiscation by customs authorities. |
| Exclusion: Conveyances | The term 'goods' specifically excludes any conveyance (e.g., ships, aircraft, vehicles) used for transportation. |
| Link to Smuggled Goods | The confiscation is contingent upon the goods having been used for the purpose of concealing smuggled goods. |
Amendment History
No amendment records available for this provision.
Customs Act, 1962 Section 119 — Confiscation of goods used for concealing smuggled goods