Customs Act, 1962 Section 28l — Powers of Authority

Overview

Section 28L of the Customs Act, 1962 grants specific powers to the Authority established under the Act. Essentially, it equips the Authority with powers similar to a civil court for conducting investigations and gathering evidence related to customs duty evasion and related offenses, while also clarifying its legal standing under various procedural and penal codes.

Who Does This Apply To?

This section primarily applies to:

• The Authority established under the Customs Act, 1962, tasked with investigating customs duty evasion.
• Individuals and businesses suspected of customs duty evasion or other related offenses.
• Customs officers involved in investigations.

How It Works

Section 28L operates through the following mechanisms:

• Powers of a Civil Court: The Authority is granted the powers of a civil court under the Code of Civil Procedure, 1908 (CPC). This includes powers related to:
  • Discovery and Inspection: Allows the Authority to discover documents and inspect premises relevant to the investigation.
  • Enforcing Attendance: The Authority can compel any person to attend hearings and provide testimony.
  • Examination on Oath: The Authority can examine witnesses under oath, making their statements legally binding.
  • Issuing Commissions: The Authority can issue commissions to examine witnesses or collect evidence in different locations.
  • Compelling Production of Documents: The Authority can compel the production of books of account and other records relevant to the investigation.
• Deemed Civil Court Status: The Authority is deemed to be a civil court for the purposes of Section 195 of the Code of Criminal Procedure, 1973 (CrPC), relating to prosecution for contempt of lawful authority of public servants, but specifically excludes the application of Chapter XXVI of the CrPC which deals with provisions as to offences affecting the administration of justice.
• Judicial Proceeding Status: Every proceeding before the Authority is deemed to be a judicial proceeding within the meaning of Sections 193 and 228 of the Indian Penal Code (IPC), related to giving false evidence and intentional insult or interruption to public servants sitting in judicial proceedings, respectively. The section also invokes Section 196 IPC, concerning the using in evidence, any statement false in evidence.

Important Conditions & Exceptions

• Condition 1: The powers granted are specifically for the purpose of exercising its powers related to investigation and adjudication of customs duty evasion matters.
• Condition 2: While deemed a civil court for specific sections, the Authority does not have all the powers of a criminal court. Chapter XXVI of the CrPC does not apply to them.
• Exception: The application of these powers is limited to the investigation and adjudication of customs matters, and does not extend to other areas of law.

Practical Example

ABC Importers is suspected of undervaluation of imported goods. The Authority, based on intelligence, believes that ABC Importers has declared the value of goods at $10 per unit whereas the actual market value is $15 per unit. To investigate, the Authority can:

1. Issue summons to the directors of ABC Importers, compelling them to appear and provide testimony.
2. Demand production of invoices, purchase orders, and bank statements to verify the actual price paid for the goods.
3. Inspect ABC Importers' warehouses to verify the quantity and quality of imported goods.
4. If the directors provide false information under oath, they can be prosecuted under Section 193 of the Indian Penal Code.

Key Amendments

No major amendments since enactment.