Customs Act, 1962 Section 135b — Power of court to publish name, place of business etc of persons convicted under the Act

Overview

Section 135B of the Customs Act, 1962 grants the court the power to publicly disclose information about individuals or businesses convicted of violating the Act. This provision aims to enhance transparency and deter future offenses by publicly shaming offenders and alerting the business community.

Who Does This Apply To?

This section applies to any person (which includes individuals, companies, and other legal entities) convicted of contravening any provision of the Customs Act, 1962. This covers a wide range of offenses, including smuggling, misdeclaration of goods, duty evasion, and violations of import/export regulations.

How It Works

The process under Section 135B unfolds as follows:

• Conviction: The process begins when a court convicts a person of violating the Customs Act.
• Court's Discretion: Following conviction, the court may (it's not mandatory) decide to invoke Section 135B. The decision to publish details rests solely with the court.
• Information for Publication: If the court chooses to invoke the section, it can direct the publication of the following:
  • Name of the convicted person.
  • Place of Business or Residence of the convicted person.
  • Nature of the Contravention: A description of the specific violation committed.
  • Fact of Conviction: A statement that the person has been convicted under the Customs Act.
  • Other Particulars: Any other details the court deems relevant to the case.
• Manner of Publication: The court also decides how the information will be published. This could include:
  • Publication in newspapers.
  • Publication through other media as the court directs.
• Expense: The cost of the publication is borne by the convicted person.
• Recovery of Expenses: If the convicted person fails to pay for the publication, the expenses can be recovered as if they were a fine imposed by the court.

Important Conditions & Exceptions

• Condition 1: No publication can occur until the appeal period has expired without an appeal being filed.
• Condition 2: If an appeal is filed, no publication can occur until the appeal is disposed of by the higher court. This ensures that the publication doesn't occur prematurely if the conviction is overturned on appeal.
• Exception: The section is discretionary. The court is not obligated to order publication, even if a conviction has occurred.

Practical Example

Imagine ABC Importers is convicted of undervaluing imported electronic components to evade customs duties. The evaded duty is assessed at ₹50 lakhs, and the court imposes a penalty of ₹25 lakhs. After the appeal period lapses without ABC Importers filing an appeal, the court invokes Section 135B.

The court orders publication of the following:

• Company Name: ABC Importers
• Address: 123 Industrial Area, Delhi
• Contravention: Undervaluation of imported electronic components, leading to a duty evasion of ₹50 lakhs.
• Conviction: Convicted under the Customs Act, 1962.

The court directs the publication to be made in two national English dailies and one local Hindi newspaper, with the expenses (estimated at ₹50,000) to be paid by ABC Importers. If ABC Importers fails to pay the publication costs, the tax authorities can recover that ₹50,000 as if it were a court-imposed fine.

Key Amendments

No major amendments since enactment.