Plain-English Explanation

Plain English Summary

Overview

Section 138C of the Customs Act, 1962, addresses the admissibility of certain non-original documents – specifically, microfilms, facsimile copies, and computer printouts – as evidence in customs proceedings. This provision simplifies evidence presentation by allowing the acceptance of these copies without requiring the original documents, provided certain conditions are met, thus streamlining customs-related litigation and assessments.

Who Does This Apply To?

This section impacts all stakeholders involved in customs-related proceedings, including:

  • Importers and Exporters: As they frequently deal with substantial documentation, streamlining evidence submission benefits them directly.
  • Customs Officers: It provides a legal basis for accepting digitally reproduced documents, aiding in assessments, audits, and investigations.
  • Customs Brokers & Agents: Those presenting documents on behalf of importers/exporters.
  • Tribunals & Courts: Adjudicating customs disputes and relying on evidence presented.

How It Works

The section outlines the circumstances under which copies can be treated as equivalent to original documents:

  • Acceptable Forms: Microfilms (and reproductions thereof), facsimile copies, and computer printouts are all considered acceptable documents.

    • Microfilms & Facsimiles: Section 138C(1)(a) and (b) states these are admissible without further proof.
    • Computer Printouts: Section 138C(1)(c) states that computer printouts are admissible provided certain conditions, elaborated in subsection (2), are satisfied.
  • Conditions for Computer Printouts: Several conditions must be met, pertaining to the computer system’s operation and the data fed into it. This ensures reliability.

  • Single Computer Concept: Section 138C(3) considers a series of computers or computer combinations operating sequentially for data processing as a single computer for the purpose of this section. This caters to complex IT infrastructures.

  • Certificate Requirement: Section 138C(4) allows a certificate from a responsible official to be accepted as evidence that details how the computer printout was produced, information about the device used, and compliance with the conditions in subsection (2). The statement in this certificate can be based on the best of the person’s knowledge and belief.

  • Information Supply: Section 138C(5) defines “supply to a computer” broadly, encompassing direct and indirect input via any equipment. Also, information supplied to an external computer by an official is still regarded as part of their work, provided it’s properly entered into the machine.

Important Conditions & Exceptions

  • Condition 1: The computer system that created the printout must have been used regularly to store/process information during the relevant period. Section 138C(2)(a).
  • Condition 2: Information of the type contained in the statement must have been regularly supplied to the computer in the ordinary course of business. Section 138C(2)(b).
  • Condition 3: The computer must have been operating properly during the relevant period, and any malfunctions must not have affected the accuracy of the data or the printout. Section 138C(2)(c).
  • Exception: If the integrity of the computer system or the information supplied is demonstrably compromised, the computer printout may be challenged and potentially deemed inadmissible.

Practical Example

ABC Importers is facing a customs duty assessment for goods imported last year. They need to provide invoices, purchase orders, and bank statements to prove the declared value. Instead of submitting the original paper documents, ABC Importers submits scanned copies (facsimile copies) of the documents along with a computer printout from their accounting system summarizing the transaction. According to Section 138C, these would be admissible as evidence. Further, in the case of the computer printout, the officer responsible for the accounting system provides a certificate stating that the system is used regularly for accounting purposes, the data was entered in the ordinary course of business, and the system was operating properly.

Key Amendments

No major amendments since enactment.

Section138C. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence. -1
(1)Notwithstanding any thing contained in any other law for the time being in force, -1
(a)a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not); or1
(b)a facsimile copy of a document; or1
(c)a statement contained in a document and included in a printed material produced by a computer (hereinafter referred to as a "computer printout"), if the conditions mentioned in sub-section (2) and the other provisions contained in this section are satisfied in relation to the statement and the computer in question, shall be deemed to be also a document for the purposes of this Act and the rules made thereunder and shall be admissible in any proceedings thereunder, without further proof or production of the original, as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible.1
(2)The conditions referred to in sub-section (1) in respect of a computer printout shall be the following, namely :-1
(a)the computer printout containing the statement was produced by the computer during the period over which the computer was used regularly to store or process information for the purposes of any activities regularly carried on over that period by the person having lawful control over the use of the computer;1
(b)during the said period, there was regularly supplied to the computer in the ordinary course of the said activities, information of the kind contained in the statement or of the kind from which the information so contained is derived;1
(c)throughout the material part of the said period, the computer was operating properly or, if not, then any respect in which it was not operating properly or was out of operation during that part of that period was not such as to affect the production of the document or the accuracy of the contents; and1
(d)the information contained in the statement reproduces or is derived from information supplied to the computer in the ordinary course of the said activities.1
(3)Where over any period, the function of storing or processing information for the purposes of any activities regularly carried on over that period as mentioned in clause (a) of sub-section (2) was regularly performed by computers, whether -1
(a)by a combination of computers operating over that period; or1
(b)by different computers operating in succession over that period; or1
(c)by different combinations of computers operating in succession over that period; or1
(d)in any other manner involving the successive operation over that period, in whatever order, of one or more computers and one or more combinations of computers, all the computers used for that purpose during that period shall be treated for the purposes of this section as constituting a single computer; and references in this section to a computer shall be construed accordingly.1
(4)In any proceedings under this Act and the rules made thereunder where it is desired to give a statement in evidence by virtue of this section, a certificate doing any of the following things, that is to say, -1
(a)identifying the document containing the statement and describing the manner in which it was produced;1
(b)giving such particulars of any device involved in the production of that document as may be appropriate for the purpose of showing that the document was produced by a computer;1
(c)dealing with any of the matters to which the conditions mentioned in sub-section (2) relate, and purporting to be signed by a person occupying a responsible official position in relation to the operation of the relevant device or the management of the relevant activities (whichever is appropriate) shall be evidence of any matter stated in the certificate; and for the purposes of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it.1
(5)For the purposes of this section, -1
(a)information shall be taken to be supplied to a computer if it is supplied there to in any appropriate form and whether it is so supplied directly or(with or without human intervention) by means of any appropriate equipment;1
(b)whether in the course of activities carried on by any official, information is supplied with a view to its being stored or processed for the purposes of those activities by a computer operated otherwise than in the course of those activities, that information, if duly supplied to that computer, shall be taken to be supplied to it in the course of those activities;1
(c)a document shall be taken to have been produced by a computer whether it was produced by it directly or (with or without human intervention) by means of any appropriate equipment.1
Explanation . - For the purposes of this section, -1
(a)"computer" means any device that receives, stores and processes data, applying stipulated processes to the information and supplying results of these processes; and1
(b)any reference to information being derived from other information shall be a reference to its being derived therefrom by calculation, comparison or any other process.1

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Frequently Asked Questions

What types of electronic documents are admissible as evidence under Section 138C of the Customs Act, 1962?

Section 138C of the Customs Act, 1962 allows for the admissibility of microfilms of documents, facsimile copies of documents, and computer printouts as evidence. These documents are treated as equivalent to original documents for evidentiary purposes in customs proceedings, provided specific conditions are met.

What conditions must a computer printout meet to be admissible as evidence under Section 138C of the Customs Act, 1962?

For a computer printout to be admissible under Section 138C(2), it must be produced by a computer used regularly for storing or processing information during the relevant period. Information of the kind contained in the statement must have been regularly supplied to the computer, and the computer must have been operating properly, with the information accurately reproducing or derived from the supplied data.

Does Section 138C eliminate the need to produce original documents in customs proceedings?

Yes, Section 138C(1) explicitly states that microfilms, facsimile copies, and qualified computer printouts are admissible without further proof or production of the original. This provision is applicable notwithstanding anything contained in any other law for the time being in force.

What is the significance of the certificate mentioned in Section 138C(4) regarding computer printouts?

The certificate described in Section 138C(4), signed by a responsible official, serves as evidence of the document's authenticity and the reliability of the computer system used to produce it. This certificate should identify the document, describe the production process, and address the conditions specified in Section 138C(2).

How does Section 138C address situations where multiple computers are used for information processing?

Section 138C(3) clarifies that if information processing is performed by a combination of computers, or different computers operating in succession, all computers used during the relevant period are treated as a single computer for the purpose of admissibility. This ensures that the integrity of the evidence is maintained even with complex IT systems.

Is there a specific format required for the certificate mentioned in Section 138C(4)?

While Section 138C(4) doesn't prescribe a specific format, the certificate must contain information identifying the document, describing how it was produced (particularly if a computer was involved), and confirming that the conditions in Section 138C(2) are met. It must be signed by a responsible official related to the device's operation or the management of the relevant activities.

If a computer was not operating perfectly during the period a printout was generated, can the printout still be admissible under Section 138C?

Yes, a computer printout can still be admissible even if the computer was not operating perfectly. According to Section 138C(2)(c), if the malfunction was not such as to affect the production of the document or the accuracy of its contents, the printout can still be considered valid evidence.

Key Conditions & Requirements

ConditionDetails
Admissibility of Microfilm/Fax/Computer Printout Microfilms, facsimile copies, and computer printouts are admissible as documents and evidence in Customs Act proceedings without original production if specific conditions are met.
Computer Printout Usage Regularity The computer printout must be produced by a computer regularly used for storing or processing information for regular activities of the person in control.
Information Supply to Computer Information contained in the printout must originate from or be derived from information regularly supplied to the computer in the ordinary course of activities.
Proper Computer Operation The computer must have been operating properly during the relevant period, or any malfunction must not affect document production or data accuracy.
Single Computer Interpretation Multiple computers or combinations used successively for the same function are treated as a single computer for admissibility purposes.
Certificate of Authenticity Requirement A certificate signed by a responsible official is required, identifying the document, describing its production, and confirming compliance with subsection (2) conditions.
Information Supply Definition Information supplied in any appropriate form, directly or indirectly, with or without human intervention, is considered supplied to the computer.
Document Production Method A document is considered produced by a computer whether produced directly or indirectly (with or without human intervention) by any appropriate equipment.

Amendment History

1Superscript numbers in the text mark amended passages — click them to jump here. Click "↑ view in text" to jump back.
1

Inserted (w.e.f. 1-7-1988) vide Notification No. 18/88-C.E. (N.T.), dated 29-6-1988 by s. 6 of the Customs and Central Excises Laws (Amendment) Act, 1988 (Act 29 of 1988).

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