Customs Preventive Manual Vol-II

CUSTOMS PREVENTIVE MANUAL (CENTRAL) VOLUME II (INTELLIGENECE)
PREVENTIVE MANUAL (CENTRAL )

VOLUME II - ( INTELLIGENECE )
CONTENTS
CHAPTERS SUBJECT PAGE NO.
CHAPTER 1 INTELLIGENCE 1 - 24
PRELIMINARY 1
SET-UP & FUNCTIONS OF INTELLIGENCE UNITS IN THE CUSTOM HOUSE 1
Set up & Functions 1
INFORMANTS 4
Definition of Informer 4
Uses of Informants 5
Informant motivation 6
DEVELOPING INFORMANTS 9
Interviewing 9
Control and handling of Informants 10
Protection of Informant’s identity 11
Other problem –areas 11
RECORDING OF INFORMATION 12
n
Registration of Informers and Information Reports 13
r.i
Procedure for recording Information 14
ACTION IN PURSUANCE OF INFORMATION 16
Precautions 16
Action on the basis of judgement
e 17
nc
INFORMATION RECEIVED / RECORDED FROM CASUAL INFORMERS 17
KINDS OF ALERTS 18
Red Alerts 18
re
Light Blue Alerts 18

Letter Alerts 19
Warning Circulars 19
fe
Basis of issue of Alert Notices 19

Issue, review and maintenance of Alerts 20
.re
Receipt of Alerts and maintenance of Visadex System 21

RECEIPT OF INFORMATION AT THE AIRPORT 23
Oral Information / Writing the Information 23
Maintenance of Visual Index system at Airports 24
w
Operation of Visadex system 24

w
CHAPTER 2 GUARDS, PATROLS & SURVEILLANCE 25 - 29

w
GENERAL NOTES 25
SURVEILLANCE ON SUSPECTS 25
SURVEILLANCE OPERATIONS 25
Types of Surveillance 26
Preparation & Equipment 26
Moving Surveillance on foot 27
Moving Surveillance with vehicles 28
Fixed Surveillance 29
Electronic Surveillance 29
CHAPTER 3 DRI SERIES OF FORMS 30 - 44
REVISION OF DRI SERIES OF FORMS 30

SALIENT FEATURES OF DRI SERIES OF FORMS 32
DRI – 1 Information Report 35
DRI – 2 Seizure Report – Anti-smuggling cases 36
DRI – 3 History Sheet 37
DRI – 4 Commercial Frauds cases of Import / Export 39
DRI – 4A History Sheet of persons involved in Commercial Frauds 41
DRI – 5 Investigation Report 42
DRI – 6 Prosecution Report 43
DRI – 7 COFEPOSA-Detention Report 44
www.referencer.in
CHAPTER 4 C. E. I. B. DATA BANK 45 - 54

CENTRAL INFORMATION ON MAJOR ECONOMIC OFFENDERS 45
INSTRUCTIONS FOR FILLING – UP OF FORMATS 45
Format I – Preliminary 47
Format II – Update 50
Annexure to Format I 51
Annexure to Format I & II 52
Reporting Agency Codes for Customs & DRI cases 54
CHAPTER 5 SEARCH 55 - 66
INTRODUCTION 55
Definition 55
Empowerment 55
Categories 55
SEARCH OF PERSONS UNDER CUSTOMS ACT, 1962 55
Persons competent to Search 55
Circumstances in which persons can be searched 56
Procedure for search of person 56
Recommendations & Guidelines for Search 57
Concealment in the rectum 57
Vaginal concealment 58
n
POWER TO SCREEN OR X – RAY BODIES 58
Refusal to be X – Rayed 59
r.i
SEARCH OF CONVEYANCES / ANIMALS 59
AUTOMOBILE SEARCH e 59
PROTECTION AGAINST CRIMINAL LIABILITY 60
POWER TO SEARCH PREMISES 61
nc
Secreted – meaning of 61
Reason to believe 62
Procedure for Search of Premises 62
re
Offences by Officers of Customs 63

Steps for execution of Search Warrants 64
fe
RUMMAGE / SEARCH OF VESSELS 65
CHAPTER 6 SEIZURE 67 - 76
.re
PRELIMINARY 67
SEIZURE OF GOODS, DOCUMENTS & THINGS 67
w
Proper Officer 67
‘Seize’ – meaning of 67
w
‘Reasonable belief’ – meaning of 68

‘Any goods’ – what they include 68
w
Seizure of documents 68
Passport - whether document 68
SECTION 110 ( 1A ) OF THE CUSTOMS ACT, 1962 69
SECTION 110 (2) OF THE CUSTOMS ACT, 1962 70
NOTICE UNDER SECTION 124 ( A ) OF THE CUSTOMS ACT, 1962 71
Service of Order, Decision, etc. 71
Period of limitation under Section 110 (2) 71
Time limit of six months whether applicable to seizure under Section 110(3) 72
CONFISCATION OF GOODS 72
Confiscated goods are vested in the Central Government 72
Section 126 applicable to goods confiscated absolutely 72
CERTAIN OFFICERS REQUIRED TO ASSIST CUSTOMS OFFICERS 73
PANCHNAMA ( SEARCH LIST ) 73
Seizure of vehicles , machinery goods 74
Guidelines for seizure of goods & preparation of Panchnama 74
CHAPTER 7 INVESTIGATION 77 - 88
PRELIMINARY 77
STATEMENT UNDER THE CUSTOMS ACT 78
Power to summon person to give statement & produce documents 78
‘Document’ - meaning of 78
www.referencer.in
‘Smuggling’ - meaning of 78
Summons – Proforma 79
Admissibility of a confessional Statement under the Customs Act. 80
Confessional Statement – When admissible 80
INTERROGATION OF SUSPECT PERSONS 80
How to record a Statement 82
Pattern of recording a Statement 83
Authorised agent 83
Nature of Statement 85
Copy of Statement – when to be given 85
Role of Lawyer during recording of a Statement 85
Statement under oath or Affirmation 85
Investigating the Statement 86
Where suspect refuses to answer 86
Retraction of Statement 87
COMPARISON OF SECTION 107 & 108 OF THE CUSTOMS ACT, 1962 87
CHAPTER 8 ADJUDICATION 89 - 109
INTRODUCTION 89
STATUTORY PROVISIONS 89
Time limit for issue & Show Cause Notice 89
Principles of natural justice 90
n
Opportunity of making of representation 91
Reasonable opportunity of being heard 92
r.i
QUASI – JUDICIAL PROCEEDINGS UNDER THE CUSTOMS ACT 92
DRAFTING OF SHOW CASUSE NOTICE e 93
Grounds of Show Cause Notice 93
Service of Show Cause Notice 93
nc
ADJUDICATION UNDER THE CUSTOMS ACT, 1962 94
Principles of Natural Justice 94
Personal Hearing 94
re
Granting of copies of depositions in cross examinations & Re-examinations 95

Adjudicating Authority should be free from bias 96
Passing of Adjudication Order 96
fe
Issue of formal Order-in-Original in every case where note-sheet order is passed 98

Powers of adjudication 100
.re
Enhancement of Adjudication powers of Joint Commissioners of Customs 100

Computation of value of the vehicles 101
Adjudication of cases involving under – valuation of imported goods 101
Powers of adjudication of Additional Commissioner of Customs 101
w
Provisional release of seized vehicles pending adjudication 102

Permission for reshipment of confiscated goods 103
w
Re-shipment / re-export of Import Cargo 103

Prohibitions & restrictions under NDPS Act, 1985 104
w
Enhancement of personal penalty in re-adjudication under Section 122 104

Onus of proof that goods are smuggled / imported illegally, on Customs Department 104
Whether same goods can be confiscated twice 106
Extension of Summary procedure for disposal of Adjudication 107
Adjudication of cases under Duty Exemption Scheme 107
Option in lieu of confiscation – Exercise of discretion – Recording of reasons 108
A CASE AGAINST A DIPLOMAT 108
CHAPTER 9 SETTLEMENT COMMISSION 110 - 121
INTRODUCTION 110
SETTLEMENT COMMISSION 110
Objects of Settlement Commission 110
Disputes related to Customs 110
Definitions 110
Eligibility of the Applicant 111
Admissibility of cases for settlement 111
CUSTOMS & CENTRAL EXCISE SETTLEMENT COMMISSION PROCEDURE 112
CUSTOMS ( SETTLEMENT OF CASES ) RULES, 1999 115
PROCEDURE ON RECEIPT OF APPLICATION U/S 127 B 117
SETTING UP OF ADDITIONAL BENCH AT MUMBAI 120
www.referencer.in
CHAPTER 10 APPEALS & REVISIONS 122 - 151
PRELIMINARY 122
APPEAL 122
Definition of 122
Right to file an Appeal 122
Right of Appeal is a vested right 122
Principles governing right of Appeal 123
PROVISIONS REGARDING APPEALS 123
APPEALABLE ORDERS 125
Decision or Order 125
Order – meaning of 125
PERSONS ENTITLED TO FILE THE APPEAL 127
Person Aggrieved 127
Commissioner’s Appeal 127
Joint Appeals 128
Aggrieved Person – who is not 130
No Appeal lies against – 130
No Appeal lies to CEGAT against – 130
Appeal lies to CEGAT against 130
FORMS & PROCEDURES FOR FILING APPEAL 130
Appeals to Commissioner (Appeals) 130
AUTHORISED REPRESENTATIVES 133
n
APPEALS TO THE APPEALLATE TRIBUNAL 134
Procedure of Appellate Tribunal 135
r.i
REVISION BY CENTRAL GOVERNMENT 140
Procedure for filing Revision Application
e 141
Statement of the case to High Court 142
Difference between Revision & Appeal 145
nc
Revision petitions to the Central Govt. by aggrieved assesses 146
Suo moto exercise of revisionary powers by Central Government 146
Power of the Board / Commissioner to review an order passed by lower authority 147
re
CONDONATION OF DELAY IN FILLING APPEALS 148

PRE-DEPOSIT OF DUTY & PENALTY AND WAIVER THEREOF 149
PROVISIONS FOR APPEAL, REVISIONS & REFERENCE AT A GLANCE 149
fe
CHAPTER 11 ARREST & PROSECUTION 152 - 166

.re
INTRODUCTION 152
PROSECUTION CELL IN CUSTOM HOUSES 153
w
ARREST & PROCECUTION FOR CUSTOMS OFFENCES 155

Guidelines on launching Prosecutions / Arrests 155
Annexure – II - Prosecution Register 159
w
Annexure – I - Investigation Report for launching Prosecution 160

Requirements to be followed in all cases of Arrest 160
w
Grant of Exit Permission to Foreigners Arrested & Prosecuted 161

GUIDELINES FOR SUBMITTING PROPOSALS TO FILE SLP IN SUPREME COURT 162
PROCEDURE FOR COMPLAINT CASES 162
Various Stages of Prosecution Case 163
Procedure for filing Appeals, etc. 164
Limitation for filing of Appeals against conviction / acquittals 164
Prosecution under the Customs Act & other Allied Acts 164
Model Remand Application 165
Model Application to Court for Examination Warrant 166
CHAPTER 12 NARCOTIC DRUGS & PSYCHOTROPIC SUBSTANCES 167 - 229
INTRODUCTION 167
Narcotic Drugs 167
Psychotropic Drugs & Substances 169
INDIAN SITUATION – VULNERABILITY AT BORDERS 170
Indo – Pakistan Border 171
Indo – Nepal Border 172
Indo – Myanmar Border 172
STRATEGY FOR COMBATING SUPPLY OF DRUGS 173
Steps taken at the Exit Points 173
www.referencer.in
Licit cultivation of opium 174

International co – operation 174
Linkage between Narcotics & Terrorism 175
THE NARCOTICS CONTROL BUREAU AND DRUG ENFORCEMENT 175
Infrastructure for Implementation 176
Threats & difficulties 177
Instructions for Customs & Paramilitary Organisations 177
SAARC WORKSHOP ON NETWORKING AMONG NATIONAL AGENCIES 178
THE NARCOTIC DRUGS & PSYCHOTROPIC SUBSTANCES ACT, 1985 182
Salient features 182
Objective 182
Measures 183
Definitions 183
Important Sections 184
Gist of some important provisions 184
THE NARCOTIC DRUGS & PSYCHOTROPIC SUBSTANCES RULES, 1985 188
Important Provisions 188
SOME IMPORTANT ASPECTS OF NARCOTICS SEIZURE CASES 194
Other useful information 195
Guidelines for Search/ Raid 196
Points to be noted while recording Panchnama 197
Recording of Statement under Section 53 of NDPS Act, 1985 198
OTHER ALLIED ACTS & RULES 198
PROCEDURES 199
n
Receipt, Custody & Disposal of Seized / Confiscated Narcotic Drugs 199
r.i
Drawal, Storage, Testing and disposal of samples from Seized Narcotic Drugs 206
PROSECUTION UNDER NDPS ACT, 1985 – VARIOUS FACETS 219
CHAPTER 12 REWARDS
e 230 - 246
nc
INTRODUCTION 230
GRANT OF REWARDS TO INFORMERS & GOVT. SERVANTS 230
re
Revised guidelines 230

QUANTUM OF REWARDS 231
Seizures (smuggling cases) under the Customs Act, 1962 231
fe
Detection of other offences under the Customs Act, 1962 233

Seizures made, evasion of duty, etc. under Central Excise Act, 1944 233
.re
Seizures made, etc., under Gold (Control) Act 233

Cases of seizures / violations detected under the FERA, 1973 233
Rewards should not be paid as a routine 234
STAGES OF PAYMENT OF REWARD 234
w
Payment of Advance Reward 234

Payment of Final Reward 235
w
TO WHOM REWARD MAY BE PAID 236

Informers & Govt. Servants 236
w
Group ‘A’ Officers above Asstt. Commissioner / Asstt. Director - not eligible 236
Staff involved in prosecution / sponsoring detention under COFEPOSA, etc. 237
DELEGATION OF POWERS FOR PAYMENT OF REWARD 237
Reward Committee 238
Constitution of Reward Committee 239
CHECK-LIST FOR PROCESSING REWARD FILES 239
Annexure II - Proposal for Final Reward to Informant 240
Annexure III - Proposal for Advance / Final Reward to Staff 241
Appendix ‘A’ - Reward Payment Certificate 241
Appendix ‘B’ - Receipt of Reward 242
SANCTION AND DISBURSEMENT OF REWARDS TO GOVT. SERVANTS 242
Issue of Sanction 242
Disbursement of Rewards 242
Annexure I - Form for forwarding cheques by PAO to originating DDO 243
Annexure IV - Certificate 244
Annexure III - Form for Reward Payment, entries in the Service Book, recurring of
cheques to originating DDO forwarding 245
Annexure II - Form for forwarding cheques by originating DDO to the Payee DDO
246
************
www.referencer.in
CHAPTER - ONE
INTELLIGENCE
PRELIMINARY
As brought out in several Chapters in Volume I of this Manual, the object of the Act is to regulate
the Import and Export, earn revenue for the Union Government. However, the main object is not merely
earnings revenue for the country but also to safeguard interests of the Nation. Parallely, the main aim of
the Customs Act, 1962, is to maintain security of India, public order and standards of morality, prevention
of smuggling, conservation of foreign exchange, protection of domestic industry, human, animal or plant
life or health etc. For this purpose, the Central Government, issue notifications under section 11 of the
Act prohibiting either absolutely or subject to certain conditions, import or export of goods of any specified
description.
The prohibited/restricted goods attract lucrative premium, which prompts anti- social elements to
indulge in bringing and take out of India, such goods. In such a situation, strict enforcement of Customs
n
and Allied Acts is very important. The Customs officer is required to shoulder the burden and enforce the
r.i
prohibitions / restrictions effectively. In order to discharge this heavy responsibility, the Customs officer is
empowered with wide ranging powers of search, seizure, arrest, launching prosecution & confiscation of
e
goods etc. To effectively combat the menace of smuggling, the officers must obtain first hand knowledge
nc
about smuggling rackets, their modus operandi, market trends regarding demand supply of sensitive
goods etc. In order to obtain such information, each Commissionerate / formation has its own intelligence
re
network. It is indisputable that even wars can be won if intelligence net work is very effective and one up
above the opponent.
fe
.re
Naturally, every Custom House has its own Identity which may evolve its own intelligence culture
and develop its formations depending upon the parameters like network of intelligence, market forces,
financial aspects, culture of informers and their background, environmental forces etc. Though every
w
Custom House has its own evolution, the actual formation/formalities go beyond the basic framework of
w
the Customs Act, 1962, and the allied Acts. The central framework is, and should be common in all the
w
Custom Houses. The broader aspects and basic necessities can be and should be as follows:-
1. The cultivation of informers

2. Collection of information
3. Compilation of Intelligence Reports.
4. Conducting investigations, making direct enquiry.
5. Carrying out searches and seizures; rummaging of vessels/conveyances/aircraft, and
various other duties connected with the intelligence work.
SET-UP AND FUNCTIONS OF INTELLIGENCE UNITS IN THE CUSTOM HOUSE
A) SET – UP -The Intelligence Division may comprise of one or more units, depending on the size of
the Customs formation and volume of work. Generally, the Division consists of the following units: --
1. Intelligence Unit.
2. Narcotics Unit
3. Rummaging Unit.
www.referencer.in
2
4. Docks Intelligence Unit.

5. Air Intelligence Unit.
6. Index Unit.
7. Investigation Unit.
8. Prosecution and Legal Unit.
9. COFEPOSA Unit
10. Adjudication Unit
11. Disposal Unit.
12. Reward Unit.
B) FUNCTIONS
1. Intelligence Unit:
(a) Cultivation of informers and gathering useful information from them regarding smuggling.
(b) Registration, scrutiny, collection and dissemination of all information reports received from the
n
field staff and giving necessary instructions regarding actions to be taken.
r.i
(c) Co-ordination and maintenance of close liaison with D.R.I., other Custom Houses,
Commissionerates of Central Excise, Police Department, Enforcement Directorate and Income-
e
tax Department, etc.
nc
(d) Compilation and interpretation of statistics with regard to Intelligence received and seizures
effected.
re
(e) Preparation and issue of the periodical intelligence bulletins for the guidance of the Intelligence
staff about the trend, volume in smuggling, the areas of operation and names of smugglers and
fe
their modus operandi.

.re
(f) Conducting searches in town on the basis of intelligence / information for seizure of contraband in
accordance with provisions of law.
(g) Surveillance in town, observations at check posts and barriers, vigil on suspect premises.
w
(h) Conducting enquiries based on intelligence reports and references received from other Custom
w
Houses, Commissionerates, D.R.I. etc.

w
2. Narcotics Unit
To deal with all matters regarding dangerous drugs such as receipt of information, follow-up
action, seizure, further enquiry & investigations etc.
3. Rummaging Unit
(a) Collection of Intelligence regarding suspect vessels and their crew.

(b) Search of suspect vessels.
(c) Maintaining guard or watch on suspect vessels.
(d) Processing of files in cases of all seizures effected by the section.
(e) Patrols and surveillance at sea and on land as required.
4. Dock Intelligence Unit
www.referencer.in
3
(a) Collection of Intelligence regarding smuggling activities in the docks / bunders and from the
ships.
(b) Follow-up of the information and effecting seizures.
(c) Patrol the Docks area.
5. Air Intelligence Unit
(a) To collect intelligence about the smuggling activities by Air Passengers, Air Crew, and other
personnel working at the Airport.
(b) To work out information regarding smuggling at the Airport.
(c) To rummage the Aircraft / Vehicles.
(d) Maintain guard / watch on suspect aircraft / vehicles and personnel.
(e) Keeping watch on suspect passengers and their baggage.
(f) Effecting seizures on the basis of Intelligence / Observation and follow-up action.
(g) Patrolling in the Customs Area (Airport).
(h) Lookout for suspect persons about whom alerts have been received from various other
n
agencies.
6. Index Unit
e r.i
nc
(a) Maintenance of indexing system for facilitating cross-references on the antecedents of
suspects and preparation of dossiers on suspects and habitual offenders.
re
(b) Keeping custody of seized documents / passports etc.

fe
7. Investigation Unit
.re
Follow-up action on the basis of information received. Seizure, Investigations and / or enquiries
and issuance of Show Cause Notices.
w
w
8. Prosecution and Legal Action Unit

w
Attending to all court matters relating to remands and prosecutions of persons arrested, writ-petitions
against Department, adjudication and other orders. Preferring appeals against lower court judgements
where necessary.
9. COFEPOSA Unit
(a) Prepare the material for detention of persons arrested in connection with the smuggling
activities under the Conservation of Foreign Exchange and Prevention of Smuggling
Activities Act, 1974.
(b) Place the proposals before the Screening Committee.
(c) After approval by the Screening Committee, submit the proposal to State / Central
Governments for issue of Detention Orders, under COFEPOSA.
(d) Assist the detaining authority in the execution of Detention Orders.
(e) Attend the Advisory Board (Constituted by the State Government) Meetings with relevant
documents etc. for perusal of the Advisory Board.
www.referencer.in
4
(f) Attend the court on COFEPOSA matters.

(g) Tracing of absconders and initiating action under Smugglers and Foreign Exchange
Manipulation (Forfeiture of property) Act, 1976.
10. Adjudication Unit
To attend to post Show Cause Notice matters such as processing replies to the defence / notice,
adjudication procedures and issue of Orders- in -Original. Also to attend to appeals arising out of such
cases.
11. Disposal Unit
(a) Receipt & custody of seized & confiscated goods.

(b) Disposal of confiscated goods / seized goods (where action under section 110 (a) of the
Customs Act, 1962, has been completed) as per existing orders.
n
12. Reward Unit
as to the staff.
e r.i
Processing seizure files for submitting recommendations for sanction of rewards to informants as well
nc
re
INFORMANTS
fe
Definition of Informer: Anyone who provides information of an investigative nature to law enforcement.
.re
Informants are generally classified into one of four groups. These groups are (1) the average
citizen, (2) fellow law enforcement investigators, (3) demented or disturbed persons and (4) criminals or
criminal associates.
w
w
Individuals in the average citizen group can often be a good source of information. Even the new
w
investigator is likely to have several good sources already established. A short list of some potential
sources in the community include bartenders, cab drivers, barbers and beauty shop operators, hotel
managers and employees, insurance and other private investigators, postmen, public utility employees,
airline personnel, rental agency clerks, waiters and waitresses.
It is important that every investigator/officer, regardless of experience, consider everyone he/she

comes in contact with as a potential source of information. An investigator / officer never knows when a
particular talk, association or expertise may be helpful in a future investigation.
It is incumbent upon every agency and investigator to ensure the confidentiality of the informer.
In those instances where the informer is exposed, society must respond to its “reciprocal duty…to protect
those who have come to its assistance…
Police investigators usually exchange information with fellow investigators, and more often with a
fellow investigator he / she has befriended. It will benefit every new investigator to meet and establish a
friendly relationship with as many federal, state, and local officers as possible. After establishing these
www.referencer.in
5
contacts, stay cognizant of the fact that it is human nature for the fellow officers to seek recognition for
their assistance. Whenever possible, credit should be given to the source of the information. Sometimes
just a simple thank you letter from the supervisor of the office to the supervisor to the assisting officer will
be tremendously appreciated and rewarding. A pleasing personality along with being sociable and
professional is the key to success in this area.
A few people who provide information to law enforcement fall into the classification of Demented
or Disturbed Persons with experience, an investigator can readily identify these persons whose
information can often be attributed to newspapers, gossip, or hallucinations.
New investigations should be cautious not to discount these informants too readily. Simply
because someone is mentally disturbed does not mean that they do not possess valuable information.
Criminals will often say or do something incriminating in the presence of such a person because the
criminals may not consider these persons as a threat to their criminal activity. Obviously, information
received from an apparent demented or disturbed person should be corroborated through independent
sources.
n
r.i
The most valuable informer is often the person who is himself/herself a violator or is or has been
associated with the criminal element. This person is usually in a better position to have substantive
e
information regarding violations of the law than the other classifications of informants. Criminal and
nc
Criminal Associate informants will be discussed in detail throughout this text.
re
Some investigative agencies make finer distinctions among informers and classify them into sub-
groups as follows: (1) Informants, (2) Confidential Informants, or (3) special employees.
fe
.re
One informer may provide information openly and have no reservations about being identified as
the source of the information. Another informant might request that his/her identity be kept confidential,
and still another may be seeking employment as a full-time informant with the expectation and knowledge
w
that he/she may be required to participate in a crime such as buying contraband in an undercover
w
investigation.
w
The individual who furnishes the investigator with information regarding criminal activity and does
not want to be identified is commonly referred to as a “confidential informant”. Much information that an
investigator receives comes from those persons whose mode of living, habits, and personal relations
place them in close contact with the violators and their activities. These people are the informers whose
identity usually remains secret, not only for their own protection, but because they have little value as a
source of information once their identity becomes known.
The person who provides information and does not care if he/she is identified as the source of the
information is often simply referred to as an “informant”. Considerable information is available from
persons whose legitimate occupations place them in a position to see hear, and possibly record facts of
value to an investigator. These persons, because of their occupations, usually reveal such information as
a civic duty and are usually willing to appear in courts as witnesses if needed.
www.referencer.in
6
The informant who provides information for pay, works undercover at the direction of an
investigator, and sometimes actually participates in a crime is frequently referred to as a “Special
employee.”
Investigators should avoid using derogatory terminology when referring to an informant.
Uses of Informants
Before discussing uses of informants, it is important to recognize several problem areas

associated with them, specifically the criminal or criminal associate informant. Often an investigator
would not utilize a criminal or criminal associate informant if equivalent results could be achieved by other
investigative methods.
The criminal or criminal associate informant is often difficult to control. Dependability and
reliability are usually not characteristic of the criminal element. Therefore, it is critical that the investigator
n
maintains firm control and direction of the criminal or criminal associate informant if the investigation is to
r.i
be legally, morally, and safely concluded. Informants who disregard the investigator’s guidelines should
be severed from further association with the government before major problems or violations of the law
occur.
e
nc
Whenever it becomes necessary to terminate an informant from further association with an
re
agency, the informant should be personally advised by the controlling investigator in the presence of the
termination should be placed in the informant’s file. The documentation will sometimes become very
fe
important at a later date when the same informant again offers his/her cooperation to another
.re
unsuspecting investigator or claims in court that he/she (the informer) violated the law while in a “Special
Employee” status.
w
A second problem area with criminal and associate informants is that they sometimes become
w
sources of public embarrassment for the agency. Usually this situation occurs when an informant,
w
because of his/her own misconception or wishful thinking, feels he/she has not been appropriately
compensated for their services. In some instances, these situations are unavoidable, but it is incumbent
upon the controlling investigator not to make any promises to the informant that cannot be kept. Exactly
what promises to the informant will be discussed throughout this text. An informant who makes
unfounded accusations to the courts or press not only embarrasses the controlling investigator and
agency, but hurts the total law enforcement effort by discouraging others from cooperating.
A third problem area associated with criminal and criminal associate informants is their
questionable credibility in court. Since all criminal investigations are pursued with the ultimate objective
of prosecution, an investigator must attempt, whenever possible, to obtain additional corroborative
evidence, independent of the informant. An investigation based almost exclusively on the testimony of
this type informant is likely doomed. A good defence attorney will expose the informant’s criminal
background and/or association and a jury will be extremely hesitant to find defendant guilty “beyond a
reasonable doubt” based almost exclusively on the testimony of an informant who is himself/herself of
questionable character and/or reputation. As stated above, an investigator would not normally utilize a
criminal or criminal associate informant if equivalent results could be achieved by other investigative
www.referencer.in
7
methods. In fact, criminal or associate informants are often used by investigators because they are
closely associated with the criminal element and have access to substantive information and evidence not
usually available via other sources or techniques.
If one accepts informants, regardless of classification, as being a legitimate and necessary

investigative technique, the logical question then comes, “how can an investigator/officer effectively utilize
informants to accomplish the mission?”
Informants are most often used to provide information to law enforcement officials regarding
violations of the law. More specifically informants are used to:
1. Make observations or perform surveillance in areas where strangers would be suspect.

2. Furnish information from a source not readily available to the investigator.
3. Conduct controlled undercover negotiations with or introduce undercover agents to criminal
suspects.
4. Testify at legal proceedings.
n
5. Gather intelligence, i.e., determine “street prices” for guns and drugs, etc.
e r.i
The above list of informant uses is not meant to be all-inclusive. Depending on the investigative
situation, informants may be appropriately utilized in a variety of ways.
nc
re
Informant Motivation
fe
Most investigators/officers readily accept the tenet that informants are fundamental in law
.re
enforcement work. Once an investigator/officer embraces this premise, the question becomes “how do
you develop informants?” Before this question can be answered, one must understand what motivates
persons to become informants, particularly criminals or criminal associates.
w
w
Motivation for average citizens and law enforcement officers is usually easily recognized. The
w
average citizen informant ordinarily supplies information or performs a service because of his/her civic
duty and a desire to see justice done. Basically the same factors as the average citizen plus their
additional professional responsibility as sworn officers to enforce the law and investigate violations
thereof motivate Law enforcement officers.
What motivates a demented or disturbed person to become an informer is very complex and
difficult to determine. In a majority of instances, information from these persons is useless and the
question becomes moot since the investigator will not utilize them. When demented or disturbed persons
possess valuable information or are able to provide a necessary service, they are usually motivated by
one or a combination of motives associated with the criminal or associate informant.
For reasons previously discussed, the investigator often uses criminal or criminal associate
informants. These informants present many legal, ethical and moral problems for the investigator not
usually associated with the other three classifications of informants. Also, if an investigator/officer is to
properly instruct, control, protect, and otherwise effectively utilize informants and evaluate their
www.referencer.in
8
information. IT IS CRITICAL in each and every instance that the investigator knows what is motivating
the informant. The most common motivations are as follows:
Fear It is said that “self preservation is the first law of nature.” Therefore, many persons turn to law
enforcement with a desire to cooperate when they are in fear of something. Probably the most typical of
this situation is the person who has been arrested for an offense and is fearful of going to jail. Since man
is a social animal and does not like to live alone, he/she will sometimes cooperate with law enforcement
in return for a consideration of leniency by the court regarding pending charges. An investigator must be
extremely careful not to make any promises to the potential informer beyond the scope of his/her
authority. There is nothing wrong with telling a defendant who is a potential INFORMANT that his
cooperation will be brought to the attention of the appropriate authority. However, any speculation of
promises by the investigator relative to the disposition of the charges pending against the informant
should be avoided. Some investigators associate this type informant almost solely with contraband
investigations and/or vice crimes. History shows that this type informant usually makes an excellent
informant regardless of the type crime of investigation being pursued.
n
Being proficient at the art of interviewing is particularly important when developing this type
r.i
informant. Most fear motivated informants do not readily volunteer to cooperate with law enforcement.
Information must usually be solicited from them and the investigator should stress the potential benefits to
e
the informer, not just to society, when attempting to gain his/her cooperation. Usually this type informant
nc
must be convinced that his information will be welcomed and the law will do whatever it can to protect
his/her identity from being publicly exposed. He/she must further believe that the law will do all within its
re
power to protect him/her from reprisals from those he/she has informed on, should his/her cooperation
become known.
fe
.re
Additional examples of persons motivated by fear are victims of rackets or swindles and those
afraid of criminal associates for a variety of reasons.
w
Revenge The person who is motivated by revenge is usually overwhelmed with an all
w
encompassing desire for retaliation and often has little if any concern about his/her identity being publicly
w
exposed or openly testifying in court.
During a career, few investigators will come in contact with an extremely high quality, revenge
motivated, and informant. The typical revenge motivated informer is a person who wishes to settle a
grudge because someone else informed on him/her, took advantage of him/her or in some manner
injured him/her. This type informant may exaggerate or make a report that is completely erroneous in an
effort to accomplish his goal. Investigators should be particularly cautious when dealing with the “lover’s
quarrel” situation where a husband-wife or boyfriend-girlfriend relationship exists. When confronted with
a “lover’s quarrel” situation, the investigator should immediately obtain all possible information and, if
possible, act on it quickly, but cautiously. These type informants are often willing to initially “tell all” but
quickly change their mind and reconcile with their spouse or friend.
Mercenary Some persons provide information or render a service to law enforcement strictly for a
fee. The device of paying a reward for information of law violations is perhaps as old as law enforcement
itself. Too much reliance on the mercenary motive, or reward payments, may backfire.
www.referencer.in
9
Although financially motivated persons usually make good informants, the investigator must be
cautious not to let the informant needlessly extend an investigation. Some informers, especially those on
a continuous pay status during an investigation, will attempt this tactic by continuously supplying frivolous
information since the informant knows his payments normally will stop when the investigation is
concluded.
Another problem associated with mercenary informants is that they sometimes leave when things
get “hot.” This is especially true when investigating vice or contraband crimes dealing with criminals who
have a general reputation of reprisals against informers. A mercenary informer will sometimes, usually
without foundation, believe that the violator suspects him/her of being an informer. If this occurs, the
informer is likely to cease his/her cooperation with law enforcement since he/she (the informer) believes
that no amount of money is worth death or serious physical harm. This situation is not as much a
problem with the revenge or fear-motivated informants.
An investigator must be extremely careful not to misinterpret an informer’s motivation. There are
many instances where an individual supplied information to law enforcement for purely altruistic reasons
n
and was completely “turned off” when offered money by an investigator.
Egotistical or Vanity
e r.i
It seems to be characteristic of humanity that we delight in spreading news to
interested listeners. Some persons take particular pleasure in passing information to law enforcement
nc
officials. These persons are sometimes said to have “police” complex because they attempt to magnify
their own importance (ego) in the eyes of law enforcement by supplying. “Quality” information to gain
re
favorable attention from the investigator. The usual tip off to this motivation within the criminal or criminal
associate category is the petty criminal who allegedly has substantive information on and contact with
fe
high level racketeers. Often the egotistically motivated informant does not possess the quantity and
.re
quality of information alleged.
Within the average citizen category of informers, these persons are usually those who
w
subconsciously or consciously want to be a law enforcement officer, but for various reasons cannot
w
qualify for law enforcement employment. The benefit to law enforcement of such persons should not be
w
too quickly discounted. Since willingness to assist law enforcement is a positive characteristic of any
informer, these persons can often be of substantial benefit if directed and motivated properly by a
competent investigator or officer.
Perverse Characteristic of this type motivation is the informer who makes a disclosure in hope of
some unusual advantage to himself/herself. The motivation is most prevalent in the areas of vice and/or
contraband crimes when the informer is earning his/her living by questionable means and informs with the
desire to eliminate his/her competition, or provides trivial or worthless information while attempting to
learn investigative techniques, the identities of undercover agents or to direct attention away from
himself/herself. In the main, law enforcement should not utilize perversely motivated informers.
However, if an informer’s motivation is to eliminate his/her competition, this type informer can often be
successfully utilized. The controlling investigator must be meticulously careful not to condone criminal
activity by the informer. An informer status should never be permitted to be licence for present or future
misconduct.
www.referencer.in
10
Repentance or Reform Occasionally an informer will cooperate with law enforcement because
he/she repents wrongdoing, because of a desire to make restitution or to break criminal alliances.
Although infrequently seen, this informer can be very valuable. When interviewing a prospective
informer, the astute investigator will sometimes use this motive as a basis for reasoning with the person
he/she hopes will cooperate. The prospective informer may decide to cooperate for money, but
subconsciously convinces himself/herself that he/she is cooperating with law enforcement for altruistic
reasons.
The above mentioned motives for criminal or associate informers will cover the majority of
situation to which the investigator will normally be exposed. However, this listing is not all-inclusive.
Many investigators have allied informers for life, long after the informer’s case has been adjudicated or
the revenge motive situation no longer exists. By treating an informer honestly and fairly, they will
sometimes continue to provide information or service because of appreciation or gratitude. All informers
are grateful for fair and decent treatment, and it is not unusual for a good investigator to receive
information from a grateful informer many years after the initial business was concluded.
n
r.i
DEVELOPING INFORMANTS
e
Probably the best technique for developing informants is being sociable and having a pleasing
nc
personality. Investigators who maintain good liaison and a friendly working relationship with both
investigators in their own agency and other law enforcement personnel will find they have taken a large
re
step forward to developing quality informants.

fe
It is very common for law enforcement officers outside one’s particular agency to come in contact
.re
with persons who possess information regarding violations of laws. For example, if a police investigator
receives information regarding violations or the smuggling laws, there is really only one appropriate place
for the officer to turn – to the Customs Service. The officer will usually contact an investigator he/she has
w
befriended. Therefore, it benefits every investigator, regardless of agency to establish good working
w
relationships with other law enforcement officers.

w
Everyone arrested should be approached as a potential informant. Some investigators,

particularly those working vice and/or contraband investigations, which have a high incidence of arrests
and case turnover, may work an entire career by developing informants from persons arrested in their
own cases. This technique is not limited solely to vice and/or contraband investigations and is generally
recommended.
Similar to the cliché, “the rich get richer and the poor get poorer,” competent, proven investigators
are most often assigned the better case referrals and investigative leads by supervisors. These referrals
often lead to developing quality informants. Naturally, a supervisor will want those under his/her
supervision to be productive and to develop an investigation to its utmost potential. Subsequently, being
a hard-working investigator with a proven record for success is, per se, self-perpetuating in developing
informants. It is important that the new investigator, who has not had the opportunity to prove
himself/herself, enthusiastically and thoroughly pursue each investigation regardless of how routine it may
appear. By so doing, the new investigator will develop a reputation of a competent hard-working
investigator and such a reputation will aid tremendously in developing informants.
www.referencer.in
11
Some new investigators are referred informants by the older, more experienced investigators in
one’s office. Sometimes an investigator is transferred and will refer an informant to a less experienced
investigator in the office. Sometimes an established investigator will have more informant and active
investigations than he/she can effectively work. In these instances, the experienced investigator will often
refer an informant to a new investigator if the new agent appears competent and enthusiastic and the
experienced investigator believes that the favor will be returned at a future time.
Basically, techniques for developing informants are limited only by the investigator’s imagination
and his/her ability and desire to be a proficient, well-rounded investigator.
Interviewing
One key to developing and gaining the cooperation of most informants is proper interviewing
technique. Most criminals or criminal associates do not readily offer information or agree to cooperate
n
with law enforcement officials. However, a competent investigator who is a good listener and can
r.i
communicate clearly and effectively can often gain cooperation. The criminal or criminal associate often
has two principal concerns that must be addressed before he/she will seriously consider cooperating.
e
First the potential informant will be concerned about the confidentiality of his/her identity and secondly
nc
that the investigator/agency will address the specific motivation of the potential informant, e.g. monetary
payments. Therefore, it is imperative that the investigator be prepared to discuss these concerns with the
re
potential informant if cooperation is to be gained.

fe
Listed below are some suggested questions the investigator should attempt to find answers to when
.re
interviewing an informant or potential informant.

1.
2. What is his/her motivation.
w
3. Has the informant been reliable in the past.

w
4. How intelligent is the informant.

w
5. How does he/she know about the violation.

6. Does he/she have a personal interest.
7. Does he/she have direct knowledge relative to the information.
8. Does he/she have access to additional related information.
9. Does he/she have reason to be vengeful toward the violator.
10. Does he/she have experience enough to report the information accurately.
11. Is he/she with holding some of the information.
12. Has he/she fabricated information in the past.
13. Is he/she willing to testify in court.
If most of the above questions can be answered, the investigator should be able to objectively
evaluate the informant and the information.
www.referencer.in
12
Control and handling of Informants
A cardinal rule is the investigator directs and controls the investigation, not the informant.
Unfortunately, this is not as basic as it may sound, especially for the inexperienced investigator who in
his/her enthusiasm to do a good job and establish his/her reputation may fall prey to a perversely
motivated informant. There is nothing wrong with asking the informant for suggestions or showing
appreciation for quality information; in fact, these techniques are encouraged. However, the supervisor
must be the controlling and decision-making authority, not the informant.
A pitfall that must be meticulously avoided is promising inflated monetary payments or making
other promises to an informant that cannot be kept or are outside the authority of an agent to make.
Advising an informant of anticipated judicial disposition of a charge pending against him; indicating that
an informant will receive probation or a reduced sentence because of his/her cooperation are examples of
commitments that are beyond the authority of an agent to make. Promising inflated rewards for
cooperation must also be avoided. Informant payments are not within the sole discretion of a case agent
and are contingent upon such factors as supervisory approval, budget, agency guidelines, etc…
n
Informants may be told that monetary payments are available and general payment guidelines. Inflated
r.i
promises of payments or rewards may stimulate an informant one time but an informant is not likely to
assist in future investigations once a promise has been reneged upon.
e
nc
In order to maintain proper control of the informant and direction of the investigation, it is a good
policy for the investigator to maintain frequent personal contact with the informant. When personal
re
contact is not possible, telephonic contact should be utilized, but not solely relied upon. Personal
meetings between the agent and informant are the best atmospheres for debriefing the informant,
fe
developing rapport and issuing instructions. Pre-arranged, secure meeting places should also be
.re
established. Utilizing government buildings, police departments, and other official buildings to meet an
informant should be avoided to reduce the risk of exposing the informant. It is generally recommended
that a second witnessing officer be present at these meetings. The second officer serves to corroborate
w
anything said or done at the meeting. This could become important at a later time if the informant makes
w
incriminating accusations against the controlling investigator. Secondly, exposure of a second

w
investigator to the informant will make the transition of the informant, from one investigator to another
investigator, easier in the event the controlling investigator is transferred, retires, etc…Although some
agencies do not make it mandatory for two investigators to meet with an informant, all agencies recognize
that meetings between agents and informants of the opposite sex and meetings where informants are
paid monies are obvious situations that dictate two investigators being present.
One of the first things to be discussed with an informant is the law regarding entrapment. The
investigator should ensure the informant understands the difference between providing an opportunity for
a suspect to violate the law versus providing the motivation. Additionally, at no time should an investigator
develop the opinion that an informant is strictly his/her personal property. An informant is actually
accountable to the government through the agency to which he/she is providing information.
Some criminal or criminal associate informants have low moral and ethical standards. Therefore,
an investigator must be on constant guard not to adopt these standards or in any way compromise
himself / herself or the government. An investigator must be particularly wary of situations where he/ she
www.referencer.in
13
is forced to closely associate with a criminal or criminal associate informant, particularly over an extended
period of time, to wit Undercover and witness protection assignments.
Good rapport and mutual trust between an investigator and an informant greatly enhances the
likelihood of accomplishing the mission. Initially, creating this type atmosphere may be difficult especially
when dealing with a fear-motivated informant who has recently been arrested. Generally, if the
investigator is truthful and fair with the informant, a solid professional relationship will eventually develop.
However, an investigator should always conduct personal and criminal background checks on an
informant and attempt to corroborate the informant’s information through independent sources.
Protection of informant’s identity
Every investigator has a professional and ethical obligation to safeguard the identity of
informants. Failure to fulfill this obligation may result in death, injury or intimidation of the informer and /
or his /her family. Reprisals against an informant due to improper investigator technique weigh heavily on
n
the investigator’s conscience and undermines the total law enforcement effort. As a general rule, an
r.i
investigative should not place an informant in a situation where the informant’s identity will likely be
exposed unless the investigator has previously explained to the informant that this is a likely result of his /
her cooperation.
e
nc
In addition to the individual investigator’s professional obligation to protect the informant’s identity,
re
many judicial systems have adopted the informer privilege. This doctrine allows the government to
withhold the identity of the informant under most circumstances. The rationale for this privilege is twofold;
fe
(1) It is to insure a constant and continuing flow of information regarding illegal activities to law
.re
enforcement authorities and (2) it is to protect the source of information from reprisals or revenge.
Other problem areas

w
w
As stated earlier in this text, control, credibility, agency embarrassment and entrapment are
w
notable problem areas associated with some informants, particularly the criminal or criminal associate.
Additional problem areas for the investigator are:
1. Involvement in informants personal problem
An investigator’s ability to be objective if jeopardized if too friendly a relationship develops with the
informant, and the investigator becomes deeply involved in the informant’s personal problems. A
professional relationship based upon mutual respect and trust is encouraged, but the investigator
must guard against the relationship becoming too personal instead of professional. The background
of the informant and the type investigation being conducted will give some guidance when developing
the informant-investigator relationship. This is not to say that the investigator should not lend a
sympathetic ear or get involved in an informant’s personal problems. Some investigators have
endeared informants for life because the investigators helped the informant through a personal crisis.
Conversely, investigators have lost control of informants, investigations and in rare instances their
personal values and integrity, because of misplaced loyalties to an informant.
www.referencer.in
14
2. Informants of the opposite sex
Special precautions should be exercised when dealing with informants of the opposite sex. During
meetings between investigators and informants of the opposite sex, precautions should be taken to
help prevent false and embarrassing accusations against the agent and / or his / her agency. One
way of protecting the investigator is to have a second officer present whenever possible. Also, the
location of meetings needs special consideration, especially if a second agent is not present.
3. Violation of the law by the informant
One of the most important areas to cover during the initial investigator / informant meetings is that
violations of the law by the informant will not be condoned or tolerated. Sometimes an informant will
believe, since he / she is working for the government, he / she has special privilege to violate the law
for his / her own advantage. Nothing is further from the truth and the investigator must ensure that
the informant understands this and will not be supported by the government in the event the law is
violated.
n
r.i
An investigator is limited as to what he / she can allow an informant to do when assisting in an
investigation. For example, an investigator may allow an informant to make a controlled purchase of
e
evidence, but could not issue or authorize the carrying of a firearm or official credentials.
nc
re
SUMMARY
fe
Despite the vast technology available to today’s investigator, we must never forget that law
.re
enforcement has to do with people, human beings whose acts and motives are not always subject to
predication and mechanical measurement. The successful and efficient investigation of crime calls for
skillful application of the old arts as well as the new.
w
No investigator who properly uses informants need be apologetic. The apology should come from the
w
investigator who fails to utilize this device.

w
[Ref: - Drug Enforcement Manual ]

RECORDING OF INFORMATION
(i) All information given by informer or any other persons should invariably be recorded in writing.
(ii) The officer recording the information must take care to see that it is informative as far as possible
on the following points namely:
(a) The identity of the smuggler or smugglers.
(b) The nature quantity and value of the goods to be smuggled.
(c) Modus operandi followed.
(d) Manner of transport to be used.
(e) Names and particulars of carriers to be employed.
(f) The routes to be followed by the smugglers and the place where the smuggled goods are
to be landed or are to be loaded for being smuggled.
(g) The approximate date and time when the smuggling is scheduled to take place.
(h) Where any premises are required to be searched the full details of the premises and it’s
location.
www.referencer.in
15
Recording and information an information in writing is a precautionary measures against

unscrupulous person/ persons out of enmity, hatred of malice giving a false information to a Revenue
Officer with a view to harass an innocent member of the public or the officer himself. Unless the officer
can prove to the satisfaction in a court of law that he made any search, seizure or detention in pursuance
of a secret information received, by him, the consequences can be serious. Should such necessity arise
the only manner in which he can convince a court, that he did not vexatiously do the search or arrest is by
producing the original information recorded in writing. An informer who gives false information to any
public servant with an intention to cause injury or annoyance to any person is punishable under Section
182 of the Indian Penal Code, 1860.
Registration of Informers and Information Reports
As already indicated all Intelligence Officers should develop their own source of information
through informers cultivated by them, after proper screening. After he is satisfied with the bonafides his
name should be got registered with the Assistant Commissioner (R&I) in the form (App. A). The Assistant
n
Commissioner will then enter personally the name and other details in the Register of informers (App. B)
r.i
and allot code number to such informers. The Assistant Commissioner will be personally responsible for
the custody to the register. The code number allotted to the informers will be on the basis of a code letter
e
allotted to the Intelligence Officers in running serial numbers.
nc
When an intelligence Officer is transferred, his informers should be made over to another only
re
with his written approval. Where the officer is not willing to make over to another, the Assistant Collector
(R&I) should check up with the informer whether they would like to work with another officer. The
fe
Assistant Commissioner shall remove the names of those who are not so willing from the Register.
.re
The names of those informers who have not furnished any useful information for a period of 12 months
shall also be deleted under intimation to the officer concerned.
w
In case of casual informers who have only specific information to give and who do not wish to be
w
regular, the Intelligence Officer shall prepare an index and submit to Assistant Commissioner in a sealed
w
cover together with information report. The Assistant Commissioner shall also maintain a Register of
such casual informer also.
As soon as the information is received, should be recorded, in the form DRI-I in the handwriting of
the informer or the Intelligence Officer. It must be in the form of informer’s statement in first person. In
the information report, the informer’s name will not be mentioned but only his code number if any, will be
given. In case the informer is not registered, his name and full address (in form given at App. A) will be
submitted in a sealed cover along with the information report. In case this is not done, the information
shall not be treated as from an informer. As soon as the information report is ready, it should be
registered and the same sent to the Assistant Commissioner and issue necessary instructions for its
follow-up after scrutiny. The information report should also be immediately registered in the Register of
Information (App. `D’). The Register should be prepared commodity wise. Cross-references should be
given under other commodities mentioned in the information report. The information report itself should
be filed in a separate guard file. Only such orders as are necessary to follow-up and such information will
be conveyed to the concerned officer for further investigation or enquiry. The information report should
be sent to the Directorate of Revenue Intelligence within 24 hours of its receipt by the Assistant
www.referencer.in
16
Commissioner and where the information is of interest to more than one Commissionerate and / or
Custom House, such Custom Houses and the Commissionerates should also be informed.
In those rare cases, where there may not be enough time to record the information in writing
before taking action, the Assistant Commissioner concerned and in his absence the Superintendent /
Intelligence in the Custom House should be informed of the receipt of the information by telephone and of
the action proposed to be taken.
A separate Register shall be maintained commodity wise for information received from other than
informers such as from D.R.I., other Commissionerate / Departments. Anonymous or pseudonymous
information may also be recorded in the Register.
At the end of each month an analysis of the information reports should be prepared to show (I)
the information reports received during the month, including those pending from the previous Mont. if any
(ii) disposals and (iii) pendency. The analysis should be submitted for information and orders to the
Assistant Commissioner and Additional Commissioner of Customs.
n
APPENDIX 'A'
1. Name and alias, if any

3. Permanent address
e r.i
2. Father's Name
4. Date of Birth
nc
5. Height 6. Identification Marks
7. Nature of Information to be supplied 8. Code No.
re
APPENDIX 'B'
fe
.re
1. Serial No. 2. Date of Enrolment 3. Name and alias, if any

4. Father's Name 5. Permanent address 6. Date of Birth
7. Height 8. Identification Marks 9. Nature of Information to be supplied
w
10. Code No. 11. Cross reference to the Information supplied by him
w
12. Cross reference to the seizures effected as a result of such Information

w
13. Particulars of any Rewards sanctioned to him

14. Date of discharge with reasons for the same 15. Remarks
APPENDIX 'D'
1. Serial No. ( of registration ) 2. Date of Report

3. Date of registration 4. Name of the reporting officer
5. Code No. of the Informer of source of Information ( in case of reports received by post or through
other Departments )
6. Synopsis of Information 7. Action taken and number of Confidential or secret file
8. Results with number of Penalty file
9. Original report filed at ( page no. of the Information Guard File ) 10. Remarks
[DRI. F. No.POL./1/60 OF 12.12.1960]
www.referencer.in
17
Procedure for recording Information
I. The orthodox and also the most effective method of collection of intelligence is of course through
informers. The importance of this source of information for purposes of actual detection of cases of
smuggling is incalculable because of its usual accuracy and precise nature. Protecting the identity of the
informer is therefore of utmost importance.
II. In order to protect the identity of the informer, the Officer collecting information should
immediately keep in a sealed envelope the information recorded with the informer’s identifying particulars
including his left hand thumb impression and signature (where possible) and hand over the sealed cover
to CA-I within 24 hours of recording of the information. In case the recording of the information is on
holidays the sealed covers should be handed over to the controlling Asstt. Commissioner within 24 hours
who in turn will hand over the same to CA-I on the next working day. It is advisable that he may not keep
it at his residence but keep it in the office with adequate safety measures.
III. Officer recording information from Preventive Commissionerate, Mumbai ((R & I Div. & M & P
n
wing) will hand over DRI-I to CA-I immediately after recording of information. The CA-I will maintain 4
r.i
Register for receiving DRI-I. These Registers will be titled differently for different Commodities as follows:
i. Gold & silver : A
ii. Narcotics :
e D
nc
iii. Currency (Indian / Foreign) : B
iv. Dutiable goods : H
re
IV. These Registers indicate the serial nos. of the concerned DRI-I, date and time of the information,
fe
name of the recording Officer, File No. and gist of information. The CA-I will put up the DRI-I for
.re
information of AC/Adm. Immediately after the same is entered in the Register.
V. The sealed cover containing the information is then entered by CA-I in a Register of sealed
w
covers, which would indicate Serial no. Date on which it is received., the corresponding register no. of
w
DRI-I Register, File No. and Officer recording the information. This cover duly sealed by the Officer
w
recording the information will then be kept in specially meant cupboards, which are under the seal and
signature of CA-I.
VI. After effecting seizure, if the value of the goods seized is more than RS. 10 lakes, a telex / fax
should be issued on behalf of the CC (P) to Member, Anti-Smuggling and D.G. DRI (within 24 hours) after
approval from Chief Commissioner of Customs. The Seizing unit will also issue DRI-II within 48 hours of
seizure detailing part played by each and every staff member who has participated in the seizure.
VII. After Reward is sanctioned, the Reward cell will send the intimation to the concerned Officer.
The said Officer should seek the appointment of disbursing Officer and inform the CA-I the date and time
fixed for disbursement of Reward amount. The CA-I will then put up the file to Supervising AC and take
his permission for withdrawing the sealed cover. He should keep it ready on the appointed date and time
for handing it over to the Disbursing Officer. The concerned Officer will then withdraw the money for
disbursement. The CA-I will personally hand over the cover to the Disbursing Office in the presence of
the Seizing Officer and collect it back personally. Once the sealed cover is in the possession of CA-I, it
will not be handed over to anyone except the Disbursing Officer.
www.referencer.in
18
VIII. On the appointed date and time the concerned Officer will report to CA-I after making necessary
entry in the Register and after taking the signature of the concerned Officer and his signature will take out
the sealed cover from the cupboard and hand it over to the disbursing Officer in the presence of the
Seizing Officer for further necessary action.
IX. After the reward is disbursed the said sealed cover will be kept in another cover duly signed by
the Disbursing Officer and the Officer who had originally recorded the information. This cover will give the
details as per the original seal cover. It will be the duty of the CA-I to keep this new cover ready at the
time of disbursement. This second cover duly sealed will be redeposited by at the CA-I in the cupboard
after making the necessary entry in the Register again.
X. The present practice of each division i.e. R & I and M & P handling their own sealed envelopes
will continue keeping in mind the nature and norms of receipt of information an its timely execution.
However in all such cases the Commissioner of Customs (Preventive) and the concerned joint
Commissioner (Preventive) must be immediately informed.
n
r.i
[S.O. No.7468/99 dt.22.07.099. issued by Mumbai (Preventive) Commissionerate]
e
nc
ACTION IN PURSUANCE OF INFORMATION
re
Precautions
fe
Irrespective of the nature and extent of reliability of the information certain basis precaution
.re
should be taken before action is initiated thereon.
(i) Source reports from the Directorate of Revenue Intelligence

w
w
Source reports emanating from the D.R.I. are received after preliminary scrutiny and verification.
w
The column “special Directions” should be scrupulously observed and action should ordinarily be taken to
the extent indicated. Results of action taken should be immediately communicated to the D.R.I. so that
any further instructions as necessary may be issued without delay.
(ii) Source report from other Customs Houses / Commissionerates
The forwarding formation shall as a rule, carry out a preliminary scrutiny before forwarding the
information to the other field formations. To the extent possible, the reliability of the source and the
extent to which it can be acted upon should be indicated to facilitate the task of officers at the receiving
end. If for any reason it has not been possible or practicable for the forwarding formation to carry out
any scrutiny or verification of the information received and the same is desired to be conducted at the
receiving end, a very clear mention must be made in the communication. The receiving formation will
then take appropriate action on the information furnished in the source report.
www.referencer.in
19
(iii) Information emanating from Registered informants
Informants are given a “Registered” status after they have proved their worth and at least
furnished two or three or more information which have turned out to be correct. Accordingly, information
emanating from such sources could be relied upon after the necessary preliminary processing including
verification of facts, if possible.
(iv) Information emanating from casual informants
In the case of casual informants a higher degree of cautions is indicated. The status and
antecedents of the informants, his relationship, if any, or equation with those against whom information
has been furnished, his motive in volunteering information, results achieved on the basis of previous
information all these factors need to be carefully considered before it is decided to act. The officer
concerned should obtain from the informant as detailed and precise information as possible. Details and
clues furnished in the information need to be processed and worked out. If searches of premises are
involved. Verification of the correct address and location of the premises together with a discreet watch
n
and surveillance should ordinarily be undertaken in an effort to verify the veracity of the information. If
r.i
this type of verification and working out of the information discloses that the same is reliable could
then be acted upon.
e
nc
(v) Source reports from Police, State Excise, Prohibition agency, Income-tax, CBI and other
enforcement authorities
re
Unless the Government Department concerned clearly indicates that information emanates from
fe
one of their reliable and tried sources, such information should ordinarily be treated on the same basis as
.re
from casual informants. If the agency forwarding the information is locally available it would always be
advantageous to discuss the details with it at appropriate level.
w
In the case of telegrams or telephone calls, purporting to be from a sister organization calling for
w
immediate action, it would be worthwhile for the officer receiving such information to ring back the
w
organization, make absolutely sure that the person at the other end is the officer of that organization
which, claims to be and check up on the reliability of the information. This should be done before the
information received over the telephone or in a telegram is acted upon.
(vi) Information from Anonymous / pseudonymous sources
The greatest possible care and circumspection are necessary where the source of the information
is anonymous or pseudonymous, may it be a letter, telephone call or telegram etc. Such communications
should first be examined in the light of background information available and only after ensuring that such
background knowledge warrants it, action as detailed below should be taken. Efforts should also be
made to ascertain the identity of the source. If specific clues are supplied, the same should be carefully
verified by maintaining watch, mounting surveillance and going into such other details as are capable of
verification or confirmation. Corroboration of information should be attempted from independent sources
also. Action to “strike” should be taken only after cautious and detailed processing leads to a strong and
reasonable belief that the information is reliable. Even so, orders of a senior officer, ordinarily of the rank
www.referencer.in
20
of Assistant Commissioner must be obtained before resorting to search senior most officers available
either on the spot or on `Phone’.
Action on the Basis of Judgement
(a) Apart from acting on the basis of information received, officers on spot will, sometimes, find it
necessary to act on the basis of their observation & judgement of the behavior of passengers /
other persons. Where, however, detailed baggage examination of the packages has to be
undertaken or a personal search conducted the senior most officers present on the spot should
invariably be consulted.
(b) In the case of diplomatic and consular officers and Trade Commissioners etc. who enjoy
immunities from baggage examination, Government’s instructions governing the concessions and
privileges admissible to them should be very strictly observed. In case of any reliable information
received which would appear to necessitate examination of their baggage, immediate contact
n
should be established with the D.R.I. who in consultation with the appropriate Government of
r.i
India agencies will work out the method and manner of action to be taken. The field formations
on their won shall not take any precipitate action.
e
nc
(c) It is recognized that a detailed examination or a personal search, when they have to be resorted
to, can never be made to look pleasant; nonetheless their rigor can be minimized by extending
re
courtesy and expression regret in suitable words at what had to be done. It should be the
endeavor of every officer to ensure that such examination and search are carries out with
fe
circumspection and restraint and is not made more distasteful than is inherent in nature of things.
.re
[DRI letter F. No. 1/1/65. dtd. 23.07.66]
INFORMATION RECEIVED / RECORDED FROM CASUAL INFORMERS- instructions

w
w
1. It has come to the notice of the Board that recently on the basis of certain information received
w
from a casual informer, relating to contraband gold carried on the person by an aged lady passenger
travelling by Bus, the lady was detained and her personal search was carried out. The information
however proved to be incorrect. The lady passenger was seriously upset and her husband about the
undue harassment and great inconvenience caused to his wife made a complaint. The matter was also
subsequently reported to the Human Rights Commission, who have taken cognizance of the complaint
and secretary (revenue) had to send a detailed report after checking with concerned Commissioner.
2. It has been felt by Board that due care was not taken for checking about the propriety of the
information, nor apparently the informer was available has felt it, when the search of the lady passenger
was carried out. The concerned officers appear to have acted in a hurry, unmindful of the importance that
is required to be given to an issue like personal search. Board is unhappy that such incidents are
happening more so when under the Citizen’s Charter. We are trying to project a better image of the
Department by reducing their grievances in relation to searches / seizures etc., effected by the field
officers. It is observed that laid down instructions are not being followed scrupulously
www.referencer.in
21
3. In this regard attention is also invited to the instructions contained in the Customs Preventive
Manual relating to “Recording of Information” and the precautions to be taken in pursuance of receipt of
information especially when the information is emanating from casual informants, which clearly provide
that:-
“.........a higher degree of caution is required in the case of casual informants. The status and
antecedents of the informants, his relationship, if any, or equation with those against whom information
has been furnished, his motive in volunteering information, results achieved on the basis of previous
information, all these factors need to be carefully considered before it is decided to act. The officer
concerned should obtain from the informant as detailed and precise information as possible. Details and
clues furnished in the information need to be processed and worked out. If searches of premises are
involved, premises together with a discreet watch and surveillance should ordinarily be undertaken in an
effort to verify the veracity of the information. If this type of verification and working out of the information
discloses that the same is reliable, it could then be acted upon”.
4. Board desires that while making search / follow up action, the instructions contained in the
Customs Preventive Manual, as stated above, should be scrupulously followed, in letter and spirit, so that
n
infructuous searches and harassment to affected persons is avoided. Extreme care should be taken in
r.i
cases of information received / recorded from the casual informants / anonymous / pseudonymous
sources, (especially in the cases where ladies are involved) and the information recorded should be
e
properly verified / checked before deciding strike action. The senior officers authorizing such searches
nc
will have to be held responsible if any casual approach is noticed in future in ordering searches of
individuals / premises etc. leading to grievances of the type mentioned above.
re
5. All the field formations particularly the officers engaged in search / seizure operation under your
fe
charge and the senior supervisory officers may be properly sensitized and be directed to follow the
.re
enclosed instructions scrupulously to avoid recurrence of such incidents, reduce public grievances and to
improve out public image.
w
[ M.F.,D.R.,F.No.394/72/99-Cus. Dated 29.04.099]

w
w
KINDS OF ALERTS
Red Alerts- for attest of a person.
Light Blue Alerts- for search of baggage and / or person, keeping a watch, maintaining
surveillance, obtaining information about a person etc. and where the lookout is to be
maintained for a continuos period
And identifying particulars about a person are available. These will also be issued against person
who has not taken income Tax clearance.
Letter Alerts— for search of baggage and / or person, keeping a watch, maintaining surveillance,
obtaining particulars of a person etc., and where this lookout is to be maintained for a particular
visit, over a short period or the identifying particulars of the person are not available. These may
also be issued against person who has not taken income Tax clearance.
www.referencer.in
22
Warning Circulars—will be issued for banning entry of a person into India. The Ministry of
Home Affairs issues these to all passport issuing and Immigration authorities on recommendation
of the Directorate.
Basis for Issue of Alert Notices
1. The Red Alerts against smugglers will only be issued in those cases where a person is required
to be arrested under the Customs Act, F.E.R.A., or allied Acts. The officer who detains a person
on the basis of a red alert should follow the procedure laid down under section 104 of the
Customs Act. He should also inform the officer as mentioned in the `Special Directions’ in the
Alert. The officer who had requested for the issue of the alert would then take further action in
the matter.
2. The Red Alert will also be issued against a person who is required to be detained under the
COFEPOSA Act but is absconding. In such cases the person detained should be taken to the
nearest Police Station who should be asked to keep the person under their custody till the detenu
n
can be transferred to the concerned state. Here again, the officer mentioned in the `Special
r.i
Directions’ should be contacted who would take further action for transfer of the detenu to the
concerned jail.
e
nc
3. The Light Blue and Letter Alerts for search of baggage / person would be issued where a
particular person is suspected to be indulging in smuggling activities. As far as the examination
re
of baggage is concerned, the Customs Officer at the point of entry or exit, is empowered to check
the baggage in normal course. However, the search of person cannot be said to be covered
fe
under this provision. Here, it is proposed to issue instructions regarding search of person only in
.re
those cases where there is definite information that the subject is indulging in smuggling activities
himself. It may be clarified that the responsibility to decide whether the person of a suspect is
required to be searched or not, in all cases, would rest on the officer on the spot. The
w
Directorate, in most of the cases, has been writing very clearly that the question of search of
w
person may be decided on merit. This practice would be continued and it is suggested that the
w
person on the spot should use his discretion fully to decide whether the person of suspect should
be searched. In any case, the information contained in Letter Alert or Light Blue Alert should be
treated as information received from any other source and then necessary action be taken. The
reason to believe required to be formed under Section 100, 101 or 104 would thus be of the
officer on the spot. It may however, be clarified that the issue of alert is an executive action of
secret nature. We would, therefore, neither mention in writing nor verbally that the alert system
exists; it is to be treated as information from a secret source.
4. Warning Circulars are issued in public interest under Section 3 of the Foreigners Act, 1946.
Issue, Review and Maintenance of Alerts
1. All categories of alerts will be issued on the basis of recommendations received from the field
formations or on the basis of material available in the Directorate. The field formations are
requested to send their recommendations, by name, to any officer of the Directorate’s
www.referencer.in
23
Headquarters at Delhi. It may be clarified that though the request for issue of Red Alert can be
sent by telex, the request for issue of Light Blue or Letter Alert should only be sent in a double
sealed cover under Registered Post. In urgent circumstances, the request can also be made on
telephone. In very urgent and exceptional circumstances the field formations may issue an alert
directly to all exit points, but a copy of this letter should invariably be endorsed to the Directorate’s
Headquarters at New Delhi for the purpose of regularizing it.
2. In this regard it may be mentioned that agencies such as Directorate of Enforcement, Narcotics
Commissioner, CBI, Directorate of Archaeological Survey of India, Income Tax Authorities etc.
have been advised to send their requests for issue of alerts directly to the DRI Headquarters. In
case they send the request directly, they may be advised to approach the system of the field
formation. If no regularization takes place within a month, the field formations will be at liberty to
withdraw the alert without further notice to the concerned authorities. The requests received from
the Zonal Units of the DRI or Directorate of Enforcement should also be treated in the same
manner.
n
3. This will however, exclude those cases in which the information is received by the field formations
r.i
directly themselves and they decide to maintain a lookout on its basis. The responsibility for
maintenance and withdrawal of such local lookouts would entirely rest on the concerned field
formation.
e
nc
4. Every alert issued by the Directorate will carry a validity period. In case the validity period is not
re
mentioned the matter should be referred to the Directorate’s Headquarters immediately. It may
be clarified that no alert can be withdrawn by the field formations, particularly the exit and entry
fe
points, unless a formal withdrawal letter is received from the DRI. The field formations who had
.re
made the original request for issue of alert should inform the Directorate’s Headquarters
sufficiently in advance, say 2 months, before expiry of the validity period, in case they desire the
alert to be continued.
w
w
5. The Red Alert will be issued to all Customs and Central Excise formations including entry and exit
w
points, and copies of the Red Alert would also be endorsed to the Enforcement Directorate
including Zonal / sub-Zonal units, Narcotics Commissioner and Zonal / Regional units of the DRI.
6. The Light Blue and Letter Alerts on the other hand will have limited circulation and will only be
forwarded to entry and exit points and concerned Commissioners / formations. It is suggested
that formations and Commissionerates, which do not control any entry or exit point, may stop
maintaining Light Blue and Letter Alerts.
7. The receipt of all alerts should be acknowledged by the field formations, after the alert is entered
in the visadex system or in the file maintained for the purpose.
The field formations should continuously review and advise the DRI as to the number of
alerts required by each formation. Since we now follow the practice of sending the alerts directly
to the entry and exit points, the field formations avoid endorsing copies from one formation to
another, such as endorsement of copies received by the Commiserate to Airport, docks, etc.
under his jurisdiction.
www.referencer.in
24
8. It may be clarified that the responsibility whether a particular alert will be issued or not and the
selection of proper Performa would lie with the DRI. Similarly, unless the validity period is
specifically fixed by the formation making the request, the responsibility of fixing the validity
period would be of that of DRI.
RED ALERTS
1. The Red alerts for apprehension of a person will be issued in the following circumstances:
(a) A person is required to be arrested under the Customs Act / F.ER.A / any other allied Act.
(b) A person is required to be detained under Section 3 of the COFEPOSA Act.
(c) If a person arrested under Customs or Allied Acts is on bail and the Court has imposed
condition on the bail that he cannot move out of the jurisdiction of the Court or cannot
leave the country.
(d) Where a person is involved in an offence under the Customs or allied Act and is wanted for
interrogation, which is likely to lead to his arrest. However, the red alert in such a case
n
would be considered only in extra ordinary circumstances.
2.
e r.i
Red Alert would not be issued if the full identifying particulars of the person or his photograph are
not available. Exception to this can only be made in very special circumstances, which should be
nc
clearly mentioned by the authority making recommendation for issue of Red Alert.
re
3. The Red Alert will be issued in a series indicating running `R’ number of the year.
fe
4. The validity of the Red Alert would normally be till arrest. However, where the goods involved are
.re
of small quantity, or value the case involved is a baggage one, a person is a crew member of a
dhow of foreign origin and who would normally not come back to India or the person is of foreign
origin and who would normally not come back to India after he has absconded, the validity of the
w
Alert may be indicated to be 5 years. It would, therefore, follow that in all these circumstances,
w
the Red Alert may be reviewed to see whether it can be withdrawn.

w
5. The Red Alert may be withdrawn in the following circumstances:

(a) If the person has been arrested.
(b) If the person has died.
(c) If the investigations do not show adequate evidence to justify his arrest.
(d) If the person is of foreign origin particularly crewmember of a dhow and who travel
without documents.
In such cases the withdrawal would be considered if the person is not noticed in India, for
a number of 5 years, after his involvement in the case or after issue of the Red Alert, as the case
may be.
6. The Red Alert will be issued to all the field formations and should not be removed from Visadex
System unless withdrawal instructions are received from the Directorate. It is suggested that the
field formations should continue to review all Red Alerts and recommend their withdrawal at the
appropriate time.
www.referencer.in
25
LIGHT BLUE ALERTS:
1. The light blue alert shall be issued in the following cases:

(a) Where the person is suspected to be involved in smuggling activities over a period of
time and it is likely that he will carry contraband / incriminating documents concerning
smuggling or F.E.R.A. offences.
(b) The person is suspected to be a carrier of contraband / incriminating documents
concerning smuggling or F.E.R.A. offences.
(c) Where a person is reported to be contacting another person who is known to be involved
in smuggling activities.
2. The Light Blue Alerts will be issued in a series indicating running `LB’ number of the year.
3. While making the recommendations, the field formations should make efforts to indicate as many
identifying particulars of a person as available so as to avoid confusion. Where the full particulars
are not available, the Directorate would normally issue a Letter Alert, which would have a short
n
validity.
4.
e r.i
While making the recommendations, regarding search of person of the suspect, care should be
taken to make sure that definite information about his activities is available. Wherever there is
nc
any doubt that a person may or may not be indulging in smuggling activities, request should only
be made for examination of his baggage, the examination of the person being left to the Senior
re
Most Officers on duty.

fe
5. The names of associates are usually mentioned in the alert for the purpose of giving background
.re
material about the suspect. It is, therefore, clarified that no action is to be taken against the
associates, unless specified otherwise. Normally, if action is required to be taken against an
associate, a separate alert would be issued.
w
w
6. The validity of the L.B. alert would normally be 2 years. However, this can be reduced or
w
increased taking in to account merit of individual case. It is reiterated that unless a formal
withdrawal letter is received from the DRI, the alert should not be removed from their records by
the field formations.
LETTER ALERTS
1. Letter alerts will normally be issued for specific purpose such as:
(a) Where a person is suspected to be involved in smuggling activities on a particular visit or
for short period, say 15 days;
(b) Where personal particulars of a suspect are not available and are required to be
collected.
2. The Letter Alert will be issued in the series indicating running `LA’ number of the year. No
standard Performa would be used for this category of alerts.
www.referencer.in
26
3. While making recommendations, the field formations should try to include as many identifying
particulars of the person as may be available on their records; the Directorates would in any case
add whatever particulars are available on its records.
4. The validity period of a Letter Alert will either be for a specific visit or for a short period not
exceeding 3 months at a time.
WARNING CIRCULARS
1. Ministry of Home Affairs can, in certain circumstances, deny or restrict entry to foreigners into
India. One of the several circumstances under which admission can be denied is indulging in
undesirable activities. The foreigners who indulge in smuggling activities are covered by this
provision. The names of persons alongwith their particulars are circulated to all Passport issuing
authorities, all Indian Missions abroad, Foreigners Regional Registration Offices and Immigration
Authorities at all exit and entry points. These circulars are known as `Warning Circulars’. In case
of foreign smugglers these Warning Circulars are issued only at the recommendation of the
n
Directorate of Revenue Intelligence.
2.
e r.i
It would be obvious that the facility of issue of Warning Circulars is duplication of our alert system.
We therefore, use this facility as a compliment to our alert system. Here it would be pertinent to
nc
mention that even after issue of a Warning Circular it is possible for a person to enter into India
either on a visa granted by our Mission in special circumstances or on the basis of temporary visa
re
granted at the point of entry. It has, therefore, been decided that the recommendation for issue of
a Warning Circular should be made to be Ministry of Home Affairs in very special circumstances,
fe
such as:
.re
(a) Some foreign smugglers attract fancy of the press and receive wide publicity, which certainly
hurts image of the department and the country. In some cases it may not be possible to issue /
continue Light Blue or Letter Alerts issued against these persons and it may be more prudent to
w
get ` warning circulars’ issued against them.

w
(b) The possibilities of a foreign carrier returning to India after he has been convicted and complete
w
his sentence are remote. But in case he is an important member of a gang, the chances of his
visiting India again after some cooling period cannot be ruled out. Issue of an alert in such cases
may not be as useful as getting a Warning Circular issued.
3. The field formations may make the recommendation for issue of Warning Circular in all the above
or similar circumstances. It may, however, be noted that the Directorate would either keep the
alert current or a Warning Circular would lie on the Directorate. There is no validity period for
Warning Circulars but they are reviewed by the Ministry of Home Affairs as well as by Directorate
from time to time.
Receipt of Alerts and maintenance of Visadex system
All alerts, the officer to whom they are addressed should see including extension and withdrawal
of alerts received from the Directorate. If that is not possible, a senior officer not less than the rank of
Superintendent should see them and indicate proper disposal.
[Excerpts from DRI D.O. No. 348/XVII/7178 DATED.31/07/79]
www.referencer.in
27
RECEIPT OF INFORMATION AT THE AIRPORT
The different types of information received at the airport orally or in writing from the intelligence
wing of the Custom House, other intelligence organisations, e.g. Directorate of Revenue Intelligence or
the contacts of the Air Customs staff or A.I.U. of Airport will be recorded in the following records:
1) Telephone Book 2) Information Register 3) Visadex
Oral Information
All information received at the airport on telephone shall first be recorded in the Telephone Book.
This will be a permanent record. All the information entered in the Telephone Book must then be properly
recorded in the Information Register which will also be a permanent record. All the information received
on telephone shall be confirmed in writing by the authority supplying the information. On receipt of
confirmation copy of the telephone information, the entries in the Telephone Book, Information Register
and the Visadex must again be checked to ensure that all entries are correctly made.
n
r.i
Writing the information
e
All information received by the Airport Customs staff from their own contacts as regards suspects
nc
must be recorded and submitted to the Asst. / Dy. Commissioner in charge who shall see the information
and have it properly recorded in the Information Register and Visadex. Written information received from
re
Customs Houses and other sources shall also be treated in the same manner.
fe
Maintenance of Visual Index at Airports

.re
The laid down initial procedure for recording and indexing of information relating to suspects is
“Visadex or Cardex” which is still in vogge at some ports and airports. This system is designed for
w
effective visual control at the shortest notice of the names appearing in it. These are 63 vertical cards
w
arranged in each tray of a Visadex Cabinet. Each card has the brief particulars such as the name
w
(aliases of the suspect), father’s name, date of birth, nationality, passport particulars, occupation,
address, local / permanent, modus operandi, associates, case details etc. The name of the suspect
appears on the left-hand bottom corner of the card. On the right hand bottom corner are signals in
different colours, i.e. red, dark blue, light green and yellow to indicate arrest, personal search including
baggage, only baggage search and / or surveillance. At Preventive Commissionerate of Mumbai, Index
cards are prepared in respect of suspect offenders, suspect vehicles and vessels on the basis of
intelligence reports received. So also index cards are prepared in respect of all economic offenders who
have been detained under COFEPOSA and those to whom show cause memos have been issued.
Visadex System - Operation of
At Chhatrapati Shivaji Airport, Mumbai, the Intelligence Bureau has provided computer terminals
to the Customs authorities for carrying out Visadex checks. These terminals are installed in arrival /
departure wings of the airport and also in the main Visadex office. All these computer terminals are
connected to the main Computer Cell managed by the E.D.P. staff of the Intelligence Bureau.
www.referencer.in
28
The officer posted at the Immigration carries out the work of feeding and updating of Visadex
pertaining to Immigration. The Customs authorities carry out computer Cell and work pertaining to
Customs Visadex.
The alerts received from various enforcement agencies fed into the main system by the officer
specially assigned to carry out such work, commonly called as Specially Visadex officer. This system is
jointly linked with the Immigration counters. When the work of primary check of arriving or departing
passengers is being carried out by the Immigration counter officers, the passenger’s name is matched
with the names maintained in both the Immigration and Customs Visadex. The software presently being
used by the Immigration Computer Cell has been on the Soundex System. To illustrate, while a name is
being checked by the Immigration officer, it is matched with all the similar sounding names or names
having the same first alphabets in parts of the names as compared to the names maintained by both
Immigration and Customs Visadex. Upon comparison with the Visadex, if it is found that the name figures
on the Immigration Visadex, it is flashed alongwith other similar sounding names and names having the
same cycle of first alphabets in their various parts of the screen of the Immigration officer. Similarly,
therefore, if the name figures on Customs Visadex, it is flashed on the Customs Echo Terminal alongwith
n
similar sounding names and names having the same cycle of first alphabets in their various parts. If,
r.i
however, the names sound different or do not contain the same cycle of first alphabets in their various
parts, they are not flashed on either Immigration Screen or the Customs Echo System.
e
nc
As the system works on the soundex system, it is absolutely necessary that the name is fed
correctly to enable the system to match it with the names mentioned in the Visadex.
re
fe
@@@@@@@@@@
.re
w
w
w
www.referencer.in
CHAPTER - TWO
GUARDS, PATROLS AND SURVEILLANCE
GENERAL NOTES:
Guard duties in Rummaging and Intelligence Division fall into two categories:
(i) Guarding suspected places while searches are being conducted or when searches could not be
completed, or prior to entering the premises before search in ensure that contraband is not
removed from the premises.
(ii) Guarding of suspect vessels.
As anti-smuggling measure, suspect vessels when in port shall be guarded round-the-clock by
the Rummaging staff. The guard-duty officers shall work in shifts, the number of officers and sepoys in
each shift depending on the availability of staff. Their main functions are;
(i) Carefully search all members of the Ship’s crew who leave or board the vessel. Ship’s
n
officers need not ordinarily be searched, but if necessity arises, they must be searched in
r.i
a ship’s cabin.
(ii) Patrol various parts of the ship such as crew’s quarters, hatches, engine room, boat-deck
e
etc. Keeping a sharp look out for suspicious movements.
nc
(iii) Keep a lookout for unauthorized cargo boats or dinghies that loiter in the vicinity or tie up
alongside the guarded vessel.
re
(iv) If the vessel is working overside, exercise vigilance on the cargo boats alongside.
(v) Keep a watch on the quayside lest any member of the crew attempts to throw any
fe
contraband overside.
.re
(vi) Keep a watch on the vessel from stem to stem to foil any attempt at unauthorised
discharge or loading of goods, contraband etc. by members of the crew.
w
SURVEILLANCE ON SUSPECTS
w
To ensure uniformity of action the following phraseology will be used for the different types by the
Officer doing surveillance work. Each alert memo wherein instructions regarding keeping surveillance on
w
a suspect are communicated to the field staff will clearly indicate the type of surveillance required to be
kept on any particular suspect.
(a) Shadowing: Maintain a 24-hour watch on the suspect and keeping record of all his
movements.
(b) Close-Surveillance: Keeping track of activities of the suspect i.e. contacts made by him (personal or
by telephone) movements etc. It does not necessarily mean keeping a physical
watch but the movements of the suspect and his general activities are to be
ascertained by a minimum of one check per day.
(c) General-Surveillance: It would mean keeping a general track of the activities and movements of the
suspect by periodical checks.
SURVEILLANCE OPERATIONS
Surveillance is usually defined as the covert, continuous or periodic watching of persons and
associations, vehicles, places or objects to obtain information concerning the activities and identities of
www.referencer.in
26
individuals. Very often surveillance is the only Investigation technique available with which to identify the
sources, couriers and recipients of illicit drugs.
Officers planning a surveillance operation, whether on foot or by any other means, must take into
consideration the possibility of counter surveillance by or on behalf of the suspect by similar means
including electronic countermeasures.
A) Types of surveillance
For the most part there are three types of surveillance:
(a) Moving surveillance, where the Investigator follows the subject on foot or in a vehicle;
(b) Stationary surveillance, where a place, object or person is continuously watched from a fixed
point;
(c) Electronic surveillance, where electronic, mechanical or other devices are use to intercept the
contents of any wire or oral communications.
The objectives of a surveillance operation are as follows;
(a) To obtain evidence of an offence;
(b) To protect undercover officers or corroborate their testimony;
n
(c) To locate persons by watching their associates and the locations they frequent;
r.i
(d) To check the reliability of informants;
(e) To locate hidden property or contraband;
(f)
e
To prevent the commission of a criminal act or to apprehend a subject in the commission of an
nc
offence;
(g) To obtain information for later use in interrogation;
re
(h) To develop leads and information initiated by contacts with other sources;
(i) To ascertain the whereabouts of a specific individuals at all times;
fe
(j) To obtain admissible evidence for use in court.

.re
Surveillance strategies can also be categorized according to function. There is, for example,
information-seeking surveillance, where the investigator attempts to learn everything he or she can learn
about a criminal enterprise. The surveillance will assist in identifying the source of supply of the suspect,
w
the couriers, the co-conspirators, and the recipient.

w
Pre-purchase surveillance is used to gather tactical information that will assist the undercover
w
officer who will attempt to make a purchase from a suspect. The investigator tries to identify the
associates of the suspect and his relationship or type of association with the suspect. The investigator
also seeks to identify the sources of supply and couriers.
Cover surveillance is used primarily for the protection of the undercover officer. It is also used to
corroborate the agent’s testimony. This is done not only through testimony that an agent was seen
entering a locate with money and leaving with drugs, but it is also designed for the surveillance officer to
observe the actual transaction if that is physically possible. Cover Surveillance also encompasses the
identification of approaches to the immediate purchasing area in case the undercover officer should find
himself in trouble, the amount of force that might have to be use to assist the undercover officer, and the
personnel and equipment needed in case the operation goes wrong.
Post purchase surveillance is usually conducted to determine where funds are channeled after a
sale to identify other customers of the seller, and to keep the seller under observation in case the
undercover officer bought a substance that was not what it was purported to be.
B) Preparation and equipment
Most competent investigations are capable of conducting a goods surveillance operation.
However, there are certain qualities that may be particularly desirable in a surveillance officer. In
www.referencer.in
27
particular, the surveillance officer should have an ordinary appearance. Any outstanding physical
characteristics such as being exceptionally tall, short or obese may attract the suspect’s attention, the
officer must have the ability to act in a natural manner under all circumstances and must suit the
particular scene under surveillance.
The surveillance officer should be alert and resourceful, particularly in view of the fact that no
matter how carefully a surveillance operation has been planned, there are always going to be
unanticipated occurrences. The officer must have demonstrated good powers of observation and
memory, as he or she may be unable to write down notes on events, descriptions, or times during the
surveillance. The surveillance officer must also be patient and possess considerable powers of
endurance. Surveillance operations invariably entail a great deal of waiting for a suspect to appear or a
good deal of routine activity as the officer follows the subject through many innocuous activities day after
day.
Disguises used by surveillance officers can be almost anything that the officer believes will help
the operation. On a short term surveillance of a building, the officers may use utility belts with tools and
hard hats to appear to be utility company employees, or some other kind of equipment to enhance the
cover, Cameras, binoculars, telescopes and recording equipment are also quite helpful if the situation
n
allows for their unobtrusive use.
r.i
One of the very first steps that should be taken in a surveillance operation is to designate an
officer-in-charge. In operations where a number of officers are involved, a tactical plan for all
e
eventualities, specifically outlining the duties of all participating officers, must be prepared if a surveillance
nc
is going to take a long period of time, decisions about relief assignment should be made before the
surveillance begins. There must also be a prearranged, secure system of communicating with superiors
re
and a system of central coordination established before the operation is begun. Signals for
communicating between and among surveillance officer should also be agreed upon. Finally, a cover
fe
story and explanation for being in a particular place at a particular time, should be discussed in advance
.re
of the operation’s inception.
C ) Moving Surveillance on foot

w
A moving surveillance operation may be conducted on foot or in vehicles. Foot surveillance is

w
used generally only in cases where relatively short distances are involved, or in cases where contact with
w
a suspect must be maintained after the suspect has left a vehicle. However, all surveillance operations
must be set up in a manner that allows a more lengthy foot surveillance to be maintained when
necessary. There are four main methods for conducting surveillance on foot. These are a one-person
surveillance, a two-person surveillance, the ABC method and the progressive method.
A one-person surveillance involves a single attempting to follow a suspect. It is very difficult to
conduct successfully because the suspect must be kept in view at all times and close contact is required
to enable the officer to observe the suspect if he turns a corner, enters a building or makes some other
sudden move. The one-person surveillance is also impacted by the degree and type of pedestrian traffic
and the physical characteristics of the area. It is not a preferred method of moving surveillance and
should be avoided if possible.
A two-person surveillance provides for greater security against detection and lessens the risk of
losing the suspect. On streets that are very crowded with pedestrians and vehicles, both officers involved
in the surveillance should remain on the same side of the street as the suspect. The first officer should
follow the suspect fairly closely. The second officer should remain some distance behind the first
surveillant. On less busy streets one officer should walk on the opposite side of the street nearly abreast
www.referencer.in
28
with the suspect. In order to avoid detection the two officers should make periodic changes in their
positions relative to the suspect under surveillance.
The ABC method utilizes a three-person surveillance team. The ABC method further reduces the
risk of losing the suspect and provides far greater security against detection. The ABC method also
permits greater variations in the positioning of the officers and allows surveillance officer who believes he
or she has been identified to drop out of the surveillance. Under normal conditions, officer “A” keeps a
reasonable distance behind the suspect while officer “B” follows officer “A” and concentrates on keeping
“A” in view. Officer “B” also checks to make sure that the suspect is not employing a confederate to detect
surveillance. Officer “C” walks on the opposite side of the street slightly behind the suspect. On streets
with little or no traffic, two officers are usually positioned on the opposite side of the street, or one officer
is positioned in front of the suspect. On very crowed streets, all three officers should be on the same side
of the street as the suspect. The lead officer should follow closely to observe the suspect at intersections
or for turns into buildings. As in the two-person method, the surveillance officers should frequently alter
their positions relative to the suspect.
Under normal conditions, when the suspect approaches an intersection and there is a high
probability of turning, officer “C” across the street should reach the intersection first. By pausing at the
n
corner, officer “C” can watch the suspect and signal the direction taken to the other officers. If “C” signals
r.i
that the suspect has turned the corner and stopped, both “A” and “B” may have to cross the intersection,
proceed to a point beyond the range of vision of the suspect, and rely on officer ”C” to signal to them
e
when the suspect continues on. Whether a suspect stops or not, the turning of a corner provides a good
nc
opportunity to rotate the positions of the officers.
In the progressive method of surveillance, the suspect is intermittently kept under surveillance as
re
he progresses along a certain routine or habitual route. The surveillance officer waits at a fixed point until
the suspect disappears from view. If the suspect follows the same route each day, the destination may be
fe
determined without constant, close surveillance. The Officer should be positioned each day in the place
.re
where the suspect disappeared from view on the previous day, or more than one officer can be used to
extend the period of observation. This method is of value in locating meeting places when the risk of
trailing a suspect is too great.
w
w
D ) Moving surveillance with vehicles

w
As is the case with foot surveillance, there are four types of vehicular surveillance one, two and
three-car surveillance and the leapfrog method. In a one-car surveillance, the vehicle should be
positioned behind the suspect’s car, with the distance varying dependent on the amount of traffic in the
area. In city traffic no more than two vehicles should be permitted between the suspect’s car and the
surveillance vehicle. In rural areas, it is advisable to give the suspect a good lead. If intersections and
forks in the road are rare with a far distance between, the lead can be extended to a point where the
suspect’s car may even be temporarily lost from view over hills or around curves. Whenever possible
there should be another car between the surveillance vehicle and the suspect’s car.
When conducting two- car surveillance in urban areas both cars should remain behind the
suspect’s car. Occasionally, one car drive on a known parallel route, timing itself to arrive at intersections
just before the suspect in order to observe his or her route at the intersection. For surveillance operations
in big cities, the use of motor cycles is important since they avoid problems created by traffic jams. When
the scale of the operation so demands, helicopters and electronic signal transmitters should be used.
In a three-car surveillance, parallel routes can be used more frequently, and the positions of the
cars can be changed frequently enough to prevent the discovery of the surveillance. One car may be
used to lead the suspect while the suspect’s vehicle is observed in the rear-view mirror.
www.referencer.in
29
In a leapfrog surveillance method, for example, a suspect’s vehicle may be observed

intermittently, as it proceeds along its suspected route. From a fixed point the officers watch the suspect’s
vehicle disappear from view. After a number of such surveillance’s, the suspect’s finally detection is too
great. At that point surveillance is called off for the day. The next time the suspect makes a routine trip the
officers can initiate their surveillance at the same geographical point where the previous surveillance was
cancelled.
As in the case of foot surveillance, a suspect who believes he or she may be followed can resort
to various techniques to detect a surveillance operation. The most common techniques are as follows:
(a) Alternative fast and show driving or parking the vehicle frequently :
(b) Stopping suddenly around curves or corners or speeding up a hill, then slowing down on the
other side;
(c) Committing flagrant traffic violations such as U turns, driving the wrong way on one way streets
and passing red lights;
(d) Using double entrances to driveways, gong in one entrance and out the other;
(e) Crossing parking lots;
(f) Crossing congested areas;
n
(g) Deserting the vehicle beyond a blind area or comer.
E ) Fixed surveillance
e r.i
Fixed surveillance entails having officers watch from a stationary vantage point such as a room,
nc
house or outdoor fixture located near the premises being observed. Fixed surveillance are used for
several reasons, including the following:
re
(a) Detecting drug operations in a targeted area:

(b) Identifying persons who frequent the domicile or business establishment and determining their
fe
roles in illicit drug activity;

.re
(c) Providing evidence for a search warrant or electronic surveillance authorization;

(d) Determining the habits of the persons who frequent the locale under observation.
Before any fixed surveillance operation is initiated a very careful study of the surrounding area
w
should be made. The investigators should note the residents, transients and the general character of the
w
community. Binoculars are essential equipment in a fixed surveillance operation. Similarly, a still or
w
motion picture camera with a telephoto lens can be used effectively.
F ) Electronic surveillance
Electronic surveillance encompasses many different technologies, some of which require
complicated and costly equipment, The use of electronic surveillance is strictly limited within the laws of
many countries because of concerns for the right of privacy of the individual. It is most important for the
drug enforcement unit to be mindful of these potential limitations to this investigative strategy and to plan
electronic surveillance operations accordingly.
The use of the more complicated types of this investigative technology should ordinarily be
reserved for those drug-trafficking organizations that are at the highest levels. Specialized instructions
and training are necessary for the effective use of the various devices and techniques, that might be
employed in this specialized investigative approach.
@@@@@@@@@@@@
www.referencer.in
CHAPTER – THREE
D R I SERIES OF FORMS
REVISION OF DRI SERIES OF FORMS – instructions
1. A review of the D.R.I. series of forms was undertaken by the Directorate of Revenue Intelligence
with a view to simplifying them and making them more relevant to the changing offence
scenario.
2. The revised formats have been numbered as D.R.I.—1 to D.R.I.—7 (proformae attached.). A
new form D.R.I.—4 has also been introduced.
3. The D.R.I. proformae was designed primarily to facilitate the collection; co-ordination and
dissemination of information on modus operandi; major offenders and emerging trends in
Customs related offences, through the medium of the Directorate of Revenue Intelligence. This
objective has, however, not been achieved for a variety of reasons. The importance of the DRI
series through which details of the evolution of a case right from its initiation in the form of
information, if any, recorded to the completion of the case in the form of a report relating to
n
adjudication / prosecution, cannot be overemphasized. Valuable data can be collected if all these
e r.i
forms are filled and sent / maintained in the periodicity and time schedule prescribed. As the
volumes involved may in the past have acted as a constraint to the Commissionerates in
nc
submitting the information prescribed in the various forms to the Directorate, realistic monetary
limits have now been prescribed beyond which only the DRI will expect information to be sent to
re
the Directorate.
4. The broad features of the scheme envisaged now are as follows:-
fe
(i). The D.R.I.—1 to be sent in respect of all cases.

(ii). The D.R.I.—2 and D.R.I.—4 are to be sent in respect of all cases where the value of
.re
seizure / evasion of customs duty / commercial fraud cases contravention is Rs.10,

00,000/ = (Ten lakes) and above only.
w
(iii). A new form D.R.I.—4A has been prescribed. This ia history sheet of people / firm /
companies found involved in commercial frauds and is a logical consequence of the
w
D.R.I.—4.
w
(iv). The D.R.I. –3, D.R.I.—4, D.R.I.—4A, D.R.I.—5 and D.R.I.—6 are to be sent to the D.R.I.
Headquarters only in respect of cases where the quantum of seizures / duty evasion is
RS.50 lakes and above.
(v). The D.R.I.—7, which is a monthly report of searches, has been done away with and
replaced with the D.R.I.—8 which was introduced in 1996, will now be numbered as
D.R.I.—7 and is to be sent as and when a person is detained under COFEPOSA.
5. Thus, there will, in all, are eight D.R.I. series forms only and reports in the various D.R.I. forms
only in respect of cases above the monetary limits indicated above need to be sent to the D.R.I.
Headquarters. However, report in these forms, even in respect of cases of lower value, should
be sent to the office of the commissioner (Prev.) so that effective supervisory control can be
exercised. A copy each of the reports being sent to the D.R.I. Headquarters may also be marked
to the jurisdictional sub-regional / regional office of the D.R.I. and also the Zonal Unit of the D.R.I.
are enclosed at Annexure ‘A’.
6. If may be seen that basically what has been done is to limit the changes to the bare minimum
with a view to get more relevant information pertaining to a case and individuals concerned with
www.referencer.in
31
the commission of offences.

7. It has been observed that, at present only D.R.I.—1 and D.R.I.—2 forms are generally sent to
D.R.I. All the officers concerned are, therefore, directed to ensure that legible copies of these
reports are invariably sent to the D.R.I. Headquarters and its appropriate units in the prescribed
formats viz. D.R.I.—1 to D.R.I.—7. The salient features / changes contemplated in each of the
forms is enclosed at Annexure ‘B’.
8. Reporting in the D.R.I. series should not be reduced to a routine exercise. Ultimately, it would be
the aim of the Directorate to ensure proper dissemination of the information gathered through
these reports to the other Commissionerates also so that effective measures to combat economic
crimes can be chalked out.
9. The new D.R.I. series of forms will come into effect from 1st July 1998 and the same has already
been circulated immediately on its receipt.
[ DRI F.No.XII A / 13-POL / 98 dt:- 21.04.1998 & dated 23.09.99 ]
ANNEXURE – ‘A’
n
Commissioner Jurisdictional Unit of DRI Sub Unit of DRI
Ahmedabad I ADG Mumbai & DD

Ahmedabad
e r.i
nc
Ahmedabad II -do-
Ahmedabad Customs -do-
Vadodara -do-
re
Goa -do- AD – Goa

Surat -do- AD – Surat
fe
Indore -do-
Raipur -do-
Rajkot -do- AD –Jam Nagar
.re
Kandla -do- AD –Jam Nagar & AD –

Gandhidham
w
Patna OSD (Nepal) AD –Patna

Jamshedpur -do- -do-
w
Allahabad -do-
Kanpur I -do-
w
Kanpur II -do-
Lucknow -do- AD Lucknow
Aurangabad ADG Mumbai

Pune-I -do-
Pune-II -do-
Mumbai-I -do-
Mumbai-II -do-
Mumbai-III -do-
Mumbai-IV -do-
Mumbai-V -do-
Mumbai-VI -do-
Mumbai-VII -do-
Mumbai (General) Cus -do-
Mumbai (Prev.) Cus -do-
Nhava Sheva -do-
Sahar Airport (Gen.) -do-
Sahar (Air cargo) -do-
Chennai I ADG Chennai

Chennai II -do-
www.referencer.in
32
Chennai III -do-

Coimbator -do-
Guntur -do-
Chennai Port -do-
Chennai Airport -do-
Trichy -do- AD Trichy
Cochin -do- AD Calicut
Vishakhapatnam -do- AD Hyderabad
Hyderabad -do- -do-
Bangalore I AD Chennai & DD Bangalore
Bangalore II -do-
Bangalore III -do-
Belgaum -do-
Bangalore (Customs) -do-
Mangalore (CUs) -do- AD – Mangalore
Bhubaneswar I ADG Calcutta
Bhubaneswar II -do-
Bolpur -do-
Calcutta-I -do-
Calcutta-II -do-
Calcutta-III -do-
Calcutta-IV -do-
Calcutta (Port) -do-
n
Calcutta (Airport) -do-
r.i
West Bengal (Prev.) -do- OSD (Nepal)
Shillong -do- AD Shillong
AD Imphal
Chandigarh I DD (DZU)
e AD Amritsar
nc
Chandigarh II -do- -do-
Amritsar Customs -do -do-
Jaipur I -do- AD Jaipur
re
Jaipur II -do- -do-

Jodhpur Customs -do- -do-
Delhi I -do-
fe
Delhi II -do-
Delhi III -do-
.re
Delhi CUs I, II, III -do-

w
w
ANNEXURE – “B”
w
SALIENT FEATURES OF DRI SERIES OF FORMS
1. DRI -- I (INFORMATION REPORTS)

a) No changes prescribed presently from the existing form.
b) To be sent in respect of all cases where information has been recorded.
(As soon as the information is received, should be recorded, in the form DRI – I (Appendix) in the
handwriting of the informer or the intelligence officer. It must be in the form of informer’s statement in first
person. In the information report, the informer’s name will not be mentioned but only his code number if
any, will be given. In case the informer is not registered, his name and full address (in form given at
App.A) will be submitted in a sealed cover along with the information report. In case this is not done, the
information shall not be treated as from an informer. As soon as information report is ready, it should be
registered and the same sent to the Assistant Commissioner and issue necessary instructions for its
follow – up after scrutiny. The information report should also be immediately registered in the Register of
Information (App. ‘D). The Register should be prepared commodity wise. Cross-references should be
given under other commodities mentioned in the information report. The information report itself should
be filed in a separate guard file. Only such orders as are necessary to follow – up and such information
www.referencer.in
33
will be conveyed to the concerned officer for further investigation or enquiry. The information report
should be sent to the Directorate of Revenue Intelligence within 24 hours of its receipt by the Assistant
Commissioner and where the information is of interest to more than one Commissionerate and / or
Custom House, such Custom Houses and the Commissionerates should also be informed.)
[ Para from DRI letter F.No. POL / 1 / 60 dt. 12.12.60 ]
2. DRI – 2 (SEIZURE REPORT) – ANTI SMUGGLING CASES
a) While basically the format remains the same, additional information about the alleged offenders
has been sought in column – 5. Thus, new sub – columns have been aded in column – 5 relating to date
of birth and particulars of passport / driving licenses and places of issue. The sub – columns of column –
5 have also been reorganized thereafter. The Notes at the end of the DRI – 2 form have been partially
changed. A value limit of Rs. 10,00,000/- (Ten lakes) has been invited to instructions at iv (b) of the
notes, wherein it has been clarified that DRI – 2 reports should be sent irrespective of the value of the
goods in cases where winder ramifications are perceived. Similarly, attention is invited to instructions at
iv (c) where even in cases where only documents are recovered but preliminary scrutiny suggests
smuggling of contraband of more than Rs. 10 lakes, it has been decided that DRI – 2 forms should be
n
submitted. It is strongly advised that the Commissionerate H. Qrs. may continue to insist on receiving
r.i
DRI – 2s in respect of all cases, made by the officers of the Commissionerates irrespective of the value.
3. DRI – 3 – (HISTORY SHEET)

e
nc
a) The DRI – 3 is to be sent only in cases where the value of seizures is Rs. 50 lakes and above;
however, as has been specified in the notes at the end of the DRI – 3 form, even in cases of seizures less
re
than Rs. 50 lakes where the persons involved are repeat offenders, or major operators, the DRI – 3 may
fe
be sent. The purpose of the DRI –3 ultimately is to build up a data bank. Hence, care should be taken to
ensure that all columns are filled. Care should be taken to ensure that the file number remains the same
.re
as shown in the DRI –2.

b) While the format remains basically the same, slight changes have been made in column – 2,
w
where particulars of telephone numbers have been included and also details of driving licenses / election
card number. In column – 4 brief facts of the case and the role of the individual in the alleged offence
w
have also been added.

w
4. DRI – 4 – (COMMERCIAL FRAUD IMPORT / EXPORT)
a) An exhaustive DRI – 4 to deal with cases of commercial fraud whether involving seizures or not
had been prescribed in 1996, to distinguish cases of this nature from cases of outright snuggling.
However, the response from the Commissionerates has been disappointing and reports in DRI – 4 have
not been coming. It is reiterated that reports in DRI – 4 in all cases of commercial fraud should be sent.
As has been specified in the notes, DRI – 4s would be expected in all cases where estimated loss of duty
or the amount involved in the contravention of schemes such as DEEC, DEPB, EPCG, DBK etc. is Rs. 10
lakes or above; Cases involving violations of Trade & Merchandise Marks Act, Indian Patents and
Designs Act, Copy Right Act, Wild Life Act and Antiquities and Art Treasures Act may be sent irrespective
of the value of the case.
b) Minor additions have been made in the existing DRI – 4 form. Thus, in column – 6, sub – column
(b) relating to furnishing the IEC No. Has been included. In Para 22 along with brief facts of the case
specific mention has been made about the estimated loss of duty.
www.referencer.in
34
4.A It has been observed that there are large number of cases where the duty liability / penalty
adjudged against the offenders could not be realized because the Department did not have any
information on their assets. Similar problem arises when the cases are to be referred to Competent
Authority under SAFEMFOPA / PITNDPS Act. It, therefore, becomes necessary particularly when the
provisions of section 142 have been amended that Department should collect as many details as possible
on the financial profiles of the offenders during investigations of the cases against them. As such during
the recording of the statements, the persons under investigation should be questioned to find out their
immovable properties e.g. house, plots, lands, commercial buildings; their moveable properties e.g.
vehicles, boats, planes, jewelry, costly luxury items, their band accounts, safe deposits, lockers, shares
and securities; and their business interest in partnership firms, companies, etc. In order to incorporate
these details in DRI series, certain further amendments are hereby made in DRI 3 and DRI – 4.
5. DRI – 4A – (HISTORY SHEET OF PERSONS INVOLVED IN COMMERCIAL FRAUD CASES

OF IMPORT / EXPORT)
a) A new form DRI – 4A have been devised. This relates to the history sheet of companies / firms /
persons involved in commercial fraud cases including violations such as DEEC, DEPB, and Drawback
n
etc; it is the equivalent of DRI – 3. DRI – 4A would be expected only in cases where the estimated loss of
r.i
duty / contravention is Rs. 50 lakes and above. However, as has been mentioned in the notes, in cases
of repeat offenders / major operators the DRI – 4A may be sent irrespective of the value. Care should be
e
taken to ensure that the file number remains the same as shown in the corresponding DRI – 4.
nc
b) Specifically against column – 4 relating to brief facts of the case details regarding the firm
involved in the offence, the custom house agent concerned, the clearing agent concerned should also be
re
given.
fe
6. DRI – 5 – (INVESTIGATION REPORT)
The DRI – 5 seeks to get the details of the case after the filing of a DRI –2 / DRI – 4. It may be
.re
sent only in cases where the value of the seizure / evasion of duty is Rs. 50 lakes and above. The idea is
thus to focus on major offences only. Care should be taken to ensure that the file number remains the
w
same as shown in the corresponding DRI –2 / DRI – 3 / DRI – 4 / DRI – 4A as the case may be.
w
7. DRI – 6 – (PROSECUTION REPORT)

w
The DRI – 6 is to be sent in cases where the value of seizure / estimated loss of duty is Rs. 50
lakes and above. The Ist report is to be sent after filing of complaint in the Court. All-important
developments, which the Commissionerates feel should be brought to the attention of the DRI, may be
communicated through subsequent reports in the same format. The final DRI – 6 report may be sent
after pronouncement of the judgement. Care should be taken to ensure that the file number remains the
same as shown in the corresponding DRI – 2 / DRI – 3 / DRI – 4 / DRI – 4A as the case may be.
8. DRI – 7 (COFEPOSA – DETENTION REPORT)
The DRI – 7 is to be sent in respect of all individuals who have been detained under COFEPOSA
by either the Central or State Government. This is to be sent as and when a person is detained under
COFEPOSA.
www.referencer.in
35
DRI – 1 (INFORMATION REPORT)
Commissionerate................................................Division....................................Unit.....................................
File No.................................................
Date...........................................
Code Number of informer...................................................................
1. Commodity / Commodities ......................................................................
2. Value (where possible) ......................................................................
3. Names of the suspects with parentage and address

......................................................................
4. Name (s) of the gang / main person or persons involved
n
......................................................................
r.i
......................................................................
5. Links of the suspects with gang / main person or persons involved

......................................................................
e
nc
6. Place / places where goods are suspected to be secreted
......................................................................
re
fe
7. Proposed action
......................................................................
......................................................................
.re
w
INFORMATION RECORDED
w
w
Time, date and place of Signature, name and Designation of the

recording the information Officer recording the information
Notes: i) All information is to be recorded in the form of informer’s statement in the first person.
ii ) A copy of this report is to be sent to the Directorate of Revenue Intelligence, New Delhi in a
sealed cover within 24 hours of its being recorded. Simultaneously, one copy should be sent to
the Assistant Commissioner & the Commissioner concerned in accordance with the instructions
issued by the Commissioner concerned.
www.referencer.in
36
DRI – 2 (SEIZURE REPORT)
Commissionerate.............................................Division..................................Unit............................
File No.............................................................
Date..........................................
1. Description of goods seized ......................................................................
2. Date & time of seizure ......................................................................
3. Place & state of seizure ......................................................................
4. (a) Quantity, value & country of ......................................................................

origin of each description of ......................................................................
goods seized (including conveyances).
(b) No. and type of packages & markings.

......................................................................
n
5. List of alleged offenders:
r.i
a) Name with alias b) Date of Birth c) Father’s name
d) Address e) Identifying particulars

e f) Pass port / Driving License
Particulars and places of issue
nc
g) Whether assessed to Income- h) Part played in the case i) Whether interrogated and
tax, if so, Permanent Account No. arrested
re
j) Whether any admission made k) Place from which arrested l) Place to which to go
about guilt
fe
m) Particulars of ship / aircraft or

.re
vehicle by which travelling
6. Whether the seizure was on the basis of prior information.

w
If so, No. & date of information report sent to DRI or the

Alert Notice issued by DRI, if not, the circumstances which
w
Led to the seizure.

w
7. Other departments associated in the matter or to

which the matter has been reported.
8. List of officers of all departments who participated

in the seizure, indicating the role played by each.
9. Brief facts of the case. (Here make a mention of

copies of the important statements if any enclosed)
PLACE / DATE: Signature, name in block letter,

Designation of Officer heading the
seizing party.
www.referencer.in
37
Notes:- i ) The seizure report is to be sent to the DRI within 72 hours of the seizure.
ii ) Separate sheets may be attached wherever necessary.
iii ) The brief facts of the case should include results of investigations done till the time of
writing this report and details not covered by other columns of this report, such as modus
operandi, nature of evidence collected, offences involved, name of owner and / or tenant of
premises from where the goods were seized, name of persons producing the keys in cases
where the seizure was effected from locked premises, further line of investigation etc.
iv ) DRI – 2 report has to be sent in the following category of seizure to the DRI II. Qrs. and to
the jurisdictional offices of the DRI:
a) in respect of cases where the value of seizure is Rs. 10,00,000/- (Ten lakes) & above.
b) where, however, an isolated seizure appears to be part of a smuggling racket and wider
ramifications are indicated, DRI – 2 reports should be sent irrespective of the value of goods seized.
c) Where only documents are recovered, DRI – 2 report should be sent only if the
preliminary scrutiny of the documents prima-facie reveals transactions above Rs. 10,00,000/- (Ten lakhs).
There may be cases in which subsequent scrutiny alone may reveal transactions over Rs. 10,00,000 (Ten
lakhs). In such cases the report in DRI – 2 form should be submitted at that stage.
n
d) In respect of the seizures made by the officers of this Directorate or on the information
r.i
furnished by this Directorate, DRI – 2 reports should be sent irrespective of the value of the goods seized.
In respect of the seizure made by officers of the Commissionerates, DRI – 2s may be sent to the
e
jurisdictional Commissionerates II. Qtrs. Irrespective of the value of goods seized.
nc
*******************************
re
DRI – 3 (HISTORY SHEET)

fe
.re
Commissionerate............................................Division....................................Unit............................
File No.......................................................... Date.......................................

w
w
Date of seizure................................................Value of the seized goods......................................

w
1. a) Full Name:....................................................
b) Alias ......................................................
2. a) Place & date of birth .......................................................

b) Father’s / Husband’s name .......................................................
c) Address in India including Telephone nos........................................................
d) Address abroad, if any.......................................................
e) Pass port No........................................................
i) Place & date of issue .......................................................
ii) Valid upto .......................................................
f) Nationality .......................................................
g) Profession / Occupation .......................................................
h) Business address including Telephone nos.................................
i) Driving license No. / Election identity card .......................................................
No. and places of issue
www.referencer.in
38
3. Details of Descriptive roll:

a) Height................................................. b) Complexion.........................
c) Colour & condition of hair................. d) Colour of eyes........................
e) Built.................................................... f) Weight..............................................
g) Visible marks of identification...................................................................................
(Photographs in triplicate to be sent wherever possible along with this report)
4. Brief facts of the case, role of individual
in the offence and Modus Operandi ...........................................................
5. Area of Operation.....................................................
6. Details of vehicle used ......................................................
7. Name of the gang to which he belongs & .

the role in it
8. Previous Offences, brief details there of, including particulars of adjudication &
prosecution .......................................................
9. Associates in offences (name, alias,
n
parentage and address are to be given) .......................................................
r.i
10. Whether assessed to Income-Tax and his .
Permanent Account Number .......................................................
e
nc
10-A Details of property
i) Immovable properties (e.g. House, plots,
lands, Commercial building) .......................................................
re
ii) Details of moveable properties (e.g. vehicles,

Boats, Planes, jewelry, luxury items, bank ........................................................
fe
accounts, safe deposits, lockers, shares, securities)

iii) Business interests (e.g. partnership firms,
companies) .......................................................
.re
(if space is not enough, please attach a separate sheet).

w
11. Whether previously detained or ordered to be

detained under COFEPOSA Act – brief details thereof. .......................................................
w
w
Time, date and place Signature, name and Designation

of the officer
NOTES:
i) This report should be sent within 1 month of filing of DRI – 2. This report should be sent in all
cases where the value of seizure is Rs. 50,00,000/- or above normally. However, in cases where the
alleged offenders involved are major operators or have come to adverse notice repeatedly in the past or
are persons against whom substantial intelligence exists, DRI – 3 is to be sent irrespective of the value of
seizure. However, a small note may accompany giving the background in which the DRI – 3 has been
sent despite the value of the seizure being lesser than Rs. 50 lakhs.
ii) This report should be sent in all cases, where any person is found involved whether the person is
arrested or not. The directions regarding photographs as given below column 3 above should be
carefully noted.
iii) The information at column. No. 10 – A needs to be collected in every cases as it would be helpful
for recovery of duty / penalty etc. under section 142 of the Customs Act, 1962 and also for taking
necessary action under SAFEM (FOP) A / PITNDPS.
www.referencer.in
39
DRI – 4
COMMERCIAL FRAUD CASES OF IMPORT / EXPORT
1. Commissionerate..................................................... File no.....................................

Division...................................................................
2. a) Date of seizure / Detection & Place

b) Port / Airport / ICD / FPO from where the
goods were seized / cleared
3. Commodity.............................................................. Value (LMV in INR)....................
Brand ............................................................... Value (FOB or CIF in US$)........
Model no. ...............................................................
4. Name of Person / Firm involved .......................................................
5. Address
.......................................................
6. a) Name of importer / exporter firm

b) IEC Number .
c) RBI Code number
7. Address
n
.......................................................
r.i
8. Name of Director / Partner Proprietor .......................................................
9. Address (Residential) & Tel. Nos.

e
nc
.......................................................
10. Names of persons arrested

re
.......................................................
.......................................................
fe
11. Address: (a) Office with Tel. Nos.

.re
.......................................................
(b) Residential with Tel. Nos. .......................................................
w
11-A. (i) Immovable properties (e.g. House, plots, .

lands, Commercial building)
w
(ii) Details of moveable properties (e.g. vehicles, .

Boats, Planes, jewelry, luxury items, bank
w
accounts, safe deposits, lockers, shares,

securities)
(iii) Business interests (e.g. partnership firms,
companies) .......................................................
(If space is not enough, please attach a separate sheet).
12. Name of Overseas Consignor / Consignee firm .......................................................
13. Address
.......................................................
14. Name of key persons thereof .......................................................

.......................................................
15. Whether any DRI – I filed, if Yes Date & YES/ NO...........................
Reference No. .......................................................
16. Name of the CHA firm involved .......................................................
17. a) License No. ....................................... Customs House...........................

b) Address........................................................... .......................................
..........................................................
www.referencer.in
40
18. Name of Directors / Partners / Proprietor .......................................................

.......................................................
19. Residential Address including Tel. Nos. .......................................................

.......................................................
20. Name of authority older, if any .......................................................
21. Residential Address including Tel. Nos. .......................................................

.......................................................
22. Brief facts of the case including estimated loss .

of duty .......................................................
23. Any intelligence regarding operators or

commodity or modus operandi learnt .
during the detection of the case and not .
covered by the above particulars
.......................................................
24. Role played by the officers .......................................................

.......................................................
n
e r.i
nc
of the officer
____________________________________________________________________________________
re
fe
NOTES:
.re
I) This report should be sent to the DRI immediately after a prima facie case of commercial fraud is
noticed, where the value of seizure / estimated loss of duty amount involved in the fraud is Rs.
w
10,00,000/- (Ten lakes) or above.

w
II) This report should be sent in all appraising cases of Import and Export e.g.
w
a) forged documents such as bills of lading, licences and release orders;

b) duplication of marks and numbers;
c) mis-declaration of quantity, description and value (under / over invoicing) involving a
value for ITC action or duty or foreign exchange over Rs. 10,00,000/-;
d) other ITC offences involving value of offending goods over Rs. 10,00,000/-;
e) diversion of export goods valued at Rs. 10,00,000/- from rupee payment area to hard
currency area;
f) However, in respect of cases detected involving violation of allied acts such as Trade &
Merchandise Marks Act, Wild Life Act, Antiquities and Art Treasures Act, Indian Patents
& Designs Act, Copy right Act, a report in DRI – 4 may be sent irrespective of the value.
iv) The information at column. No. 11 – A needs to be collected in every case as would be helpful for
recovery of duty / penalty etc. under section 142 of the Customs Act, 1962 and also for taking
necessary action under SAFEM (FOP) PITNDPS.
www.referencer.in
41
DRI – 4 A
HISTORY SHEET OF PERSONS INVOLVED IN

COMMERCIAL FRAUD CASES OF IMPORT / EXPORT
1. Commissionerate........................................ File No.................................................

Division...................................................................
2. a) Date of Seizure / Detection & Place
b) Port / Airport / ICD / FPO where the .

goods were seized / cleared .......................................................
3. a) Full Name: .
b) Alias
4. a) Place & date of birth
b) Father’s / Husband’s name
c) Address in India including Telephone .
Numbers
d) Address abroad, if any
.......................................................
e) Passport No.
n
i) Place & date of issue .
r.i
ii) Valid upto .......................................................
f) Nationality .......................................................
g) Profession / Occupation
.......................................................
e
nc
h) Business address including Telephone
numbers .......................................................
i) Driving License No. / Election identity
Card No. & Places of issue .......................................................
re
5. Details of Descriptive roll:

fe
a) Height............................................... b) Complexion...............................
c) Colour & condition of hair............... d) Colour of eyes...........................
e) Built................................................... f) Weight.......................................
.re
g) Visible marks of identification.......................
(Photograph in triplicate to be sent, wherever possible along with this report)

w
6. Details of firm / company involved in the

w
Contravention:
a) Regd. Office address / Tel. No’s. . b) Name, address & Tel. No’s of
w
. Directors / partners of the

Company / firm.........................
c) IC Code Number........................... d) IT assessment number..............
e) RBI code Number...............................................
(Photographs in triplicate to be sent in cases where the offender has been arrested / convicted
by Court).
7. Name of the Importer – Exporter firm

including LEC No. and designation .
of the offender .......................................................
8. Brief facts of the case, role of individual
in the offence, estimated loss of Customs .
Duty and Modus Operandi
9. Previous Offences of the individual & the
firm brief details thereof, including .
particulars of adjudication & prosecution
10. Associates in offences (name, alias .
parentage and address are to be given)
11. Whether assessed to Income – Tax and his
Permanent Account Number .......................................................
12. Whether previously detained or ordered
www.referencer.in
42
to be detained under COFEPOSA Act -

brief details thereof

of the officer
NOTES:-
I) This report should be sent within one month of filing DRI – 4. This report should be sent in all
appraising cases of import / export where the value of the seizure / estimated loss of duty / amount
involved in the contravention is Rs. 50,00,000/- or above normally. However, in cases where the alleged
offenders involved are major operators or have come to the adverse notice repeatedly in the past or are
persons against whom there exists substantial intelligence, DRI – 4A is to be sent irrespective of the
value of the seizure. However, a small note may accompany giving the background in which the DRI –
4A has been sent despite the value of the seizure being lesser than Rs. 50 lakhs.
ii) This report should be sent in all cases, where any person is found involved whether the person is
arrested or not. The directions regarding photographs as given below column 5 above should be
carefully noted.
n
**********************
e
DRI – 5 (INVESTIGATION REPORT) r.i
nc
Commissionerate...............................................Division....................................Unit......................................
re
.
File No. .............................................. Date.....................................
fe
Date of seizure / detection of case .............................................................

.re
Value of the seized goods / loss of duty .............................................................

w
1. Brief facts of investigation conducted

since submission of DRI – 2 / DRI – 4 .......................................................
w
w
2. Names of offenders including those .

absconding not furnished in DRI – 2 /
DRI – 4 including parentage and address .......................................................
3. Date of issue of Show Cause Notice .......................................................

(copy of SCN to be enclosed) .......................................................
4. Date and Gist of Adjudication Order .......................................................

(Adjudication order to be enclosed). .......................................................
.......................................................

of the Officer
www.referencer.in
43
NOTE:
i) To be sent only in cases where value of seizure / loss of customs duty is Rs. 50,00,000/- or
above, or in all cases wherever a DRI – 3 / DRI – 4A has been sent.
ii) Separate sheet may be attached wherever necessary.
iii) The first DRI – 5 report should be submitted after three months from the date of seizure.
iv) After the initial DRI – 5 report, the subsequent DRI – 5 reports should be submitted at the time of
issue of show cause notice & issue of Adjudication order.
***********************
DRI – 6 (PROSECUTION REPORT)
Commissionerate................................................Division................................Unit........................
File NO. ............................................................ Date.........................................
Date of seizure................................................... Value of the seized goods............................
n
1. Total no. of persons involved .......................................................
r.i
2. Total number of persons arrested
3. Total No. of persons against whom the

e
nc
complaint has been filed (copy. of ......................................................
complaint to be enclosed)
re
4. Progress of the case in the court .......................................................

fe
5. Names of persons convicted showing

.re
the punishment awarded to each (copy .
of judgement to be enclosed) ............................................................

w
w
w

of the Officer
.
____________________________________________________________________________________
NOTES:-
i) Separate sheet may be enclosed wherever necessary.

ii) This report should be sent to DRI in all cases where the value of seizure / estimated loss of
Customs duty is Rs. 50,00,000/- and above only or in all cases where DRI – 5 has been sent.
a) Imbed at by after filing the complaint in the court.
b) As and which there is any important development till the end of court (framing of charges)
proceedings.
c) Immediately after the announcement of the judgement.
www.referencer.in
44
DRI – 7 (COFEPOSA DETENTION REPORT)
1. This report is to be sent to DRI (H.Qrs) addressed to Asstt. Director upon a detention order
issued by either the Central or State Governments having been served.
2. Upon service of the order information relating to SL. No. 9 & 10 should be immediately
communicated. Upon release of the detenu, information relating to SL. No. 11 & 12 should be
immediately communicated.
1. Name of the formation .......................................................
2. File No. .......................................................
3. Detaining Authority:
File No: .......................................................
4. Name of the Detenu: .......................................................

Father’s Name: .......................................................
5. Address:
Res. ............................................
Off. ............................................
n
Contact .........................................
6. Personal Particulars
Age
Date of birth :
:
e r.i
nc
Passport no. :
Date of issue :
Issued from :
re
PHOTOGRAPH
fe
7. Names and addresses of co-accused

1. ..................................................................
.re
2. ....................................................................
3. ......................................................................
w
8. OFFENCE IN BRIEF (Include value / quantity / date of seizure as well as duty evasion & hawala
etc. if any; modus operandi; gangs linked with; role of the accused)
w
........................................................................................................................................................................
w
........................................................................................................................................................................
9. Date of service : .......................................................
10. Jail Lodged in : .......................................................
11. Date of Release : .......................................................
12. Grounds of Release : .......................................................
PLACE:...................
DATE:...................
.
(SIGNATURE OF ASSTT. COMMISSIONER)
@@@@@@@@@@
www.referencer.in
CHAPTER - FOUR
CENTRAL INFORMATION BANK ON MAJOR

ECONOMIC OFFENDERS
The Bureau of Central Economic Intelligence has set up a Central Information Bank of economic
offences / offenders and has asked field formations to forward case data as per prescribed monetary limit,
details of current cases within 48 hours of search / seizure action using the E I D C (Data entry) software
formats.
]
Formats for flow of DATA from enforcement agencies, circulated by the Bureau vide letter
F.No.294 / 10197 / C E I B (DB) dt.01.07.99, are reproduced below :
CENTRAL ECONOMIC INTELLIGENCE BUREAU
Central Information Bank on Suspect Major Economic offenders
Instructions for filling – up of Formats
n
General Instructions
1.
e r.i
Both the Formats may be filled in respect of the following type of Investigation / Intelligence
cases:
nc
- Cases involving monetary limit for Rs. 50 lakhs or more of duty evaded or search / seizure
re
carried out in respect of Central Excise, Customs and forfeiture of property.
- Cases involving Rs. 50 lakhs or more of seizures and / or Rs. 1.00 crore or more of suspected
fe
concealment of income in respect of I.T. cases.

.re
- Cases of FERA violation of Rs. 10 lakhs or more (by Enforcement Directorate).
- All cases of Narcotic Drugs detected by NCB and Custom formations, other than those of
w
peddlers (by NCB).

w
2. To begin with, all the live cases in which search and seizures have been conducted or show
w
cause notices have been issued since 01.01.96 may be sent. After the current case since
01.01.96 have been sent, past cases since 1991 – 92 may be transcripted in the formats and sent
to CEIB.
3. Organisations / Field Formations having computer facility available with DOS environment, may
send the details of cases through computer floppies using the data entry software supplied to
them through floppies.
4. The field formations would send the FORMAT – I (Preliminary) to the Coordinating Agency with in
48 hours of search / seizure, who is turn would send it to CEIB within a week of search / seizure.
5. The field formations would send the FORMAT – II (Update) within 48 hours of issue of Show
Cause Notice (or preparation of appraisal report in case of IT cases), who in turn would send it to
CEIB within a week of issue of the show cause notice or preparation the appraisal report.
6. Filling up of information in the two formats is obligatory for all Enforcement Agencies. In case
some information is not available immediately after search / seizure, it may be furnished
separately but as early as possible.
www.referencer.in
46
7. If some columns have been left blank in the first dispatch of formats, same may be updated on
quarterly basis. A system should be built up in each of the Enforcement Agencies whereby a
quarterly update of information already supplied is made necessary.
FORMAT – I (Preliminary)
General
(a) The format – I comprises of three parts. In the first part (page – 1), in one page, details about the
seizures are to be given. The second part comprises of a one page information sheet (page – 2)
about the list of offender companies involved in the offence. A separate sheet should be used if
more than 12 companies are involved in a case. The third part comprises of a three page
information sheet (pages 3 – 5) about the offender. This three-page set may be filled separately
for each offender involved in the case.
(b) All names should be entered in BLOCK LETTERS in the following order:
First name Middle name Surname
n
(c) All dates should be entered in the following order:
Dd / mm / yy
(d : day ; M : month ; y : year)
e r.i
nc
(d) To write codes for * marked items, use lists at Annexures.
(e) Use the abbreviations like K – Known, D – Declared, S – discovered to mention the following
re
details of offenders known or declared or discovered.

-- Occupation / Business Codes
fe
-- Residential / Business Address

.re
-- Passport Details
-- Offender’s Associates
-- IT Permanent A / c No.
w
-- Offender’s Bank A / c No.

w
-- Offender’s Associated Companies / Firms

w
8. Top Right Hand Corner: Please put a tick at appropriate item and score out the others. If at the
time of sending data of a case for the first time, i.e; after 48 hours of search / seizure action, if
entry against some items is left blank for want of confirmed data, a second dispatch of the format
for the same case may be sent within 2 months of search / seizure action giving the missing
information. If in the second dispatch also some information is still missing, the same may be
supplied as third & final dispatch, immediately after issue of ‘Show Cause Notice’ or preparation
of ‘Appraisal Report’ but in any case within 6 months of search / seizure action. If information is
being sent for the first time put a tick (-/) at first dispatch and scores out second dispatch and final
dispatch. Similarly, for second and third dispatch.
9. Item 1 -- Reporting Agency Code: Please give the relevant agency code of the reporting
agency as per the directory of codes enclosed.
10. Item 2 -- Running Serial No. of Reporting Agency: Please give year – wise serial number to
each case reported in the formats. For example, 6th case sent in the format during 1996 may be
shown as 6 / 1996 and so on.
www.referencer.in
47
11. Items 3 to 6: Self-explanatory.
12. Item 7: Give both the Estimated Market value (EMV) and CIF value of goods seized.
13. Item 8: Self-explanatory.
14. Item 9: This item is for offender’s details. If there are more than one offender in a case, separate
sheets of page – 3 (item 9) should be added for each offender. One sheet is meant for details of
one offender.
15. Items 10, 12, and 13: Self-explanatory.
16. Item 11: Please mention the name and occupation of Associates. In case the Associates are
perceived to be major / important economic offenders themselves, the FORMATS may be
separately filled up for them. Associates include foreign associates or connections with
organized gangs or relatives settled abroad.
17. Item 14: Details of all previous offences with value of offence more than Rs. 10 lakes should be
reported. However, in case this information has already been reported, it need not be repeated
n
but a mention should be made about the running serial number of Format through which it was
r.i
sent.
18. Item 15: Self-explanatory.

e
nc
FORMAT – II (Update)
re
19. Top Right Hand corner and items 1 – 3: As in FORMAT – I
20. Item 4: Not to be filled – in by the reporting agency.

fe
21. Col. 5 – 19: Self-explanatory.

.re
w
.................................
w
First Dispatch
w
Second Dispatch
Final Dispatch
CENTRAL ECONOMIC INTELLIGENCE BUREAU
Central Informant on Bank on Suspect Major Economic Offenders
Format – I (preliminary)
1. Reporting Agency Code
2. Running Serial No. of Reporting

Agency (calendar Yr. Wise)
3. Reporting Agency’s Offence Case

File Reference Number
4. Type of offence (To fill, pick up code from enclosed list)
Code* Offence Description
www.referencer.in
48
5. List of Acts / Sections / Rules / Regulations
SR. No. Act / Section etc. under which offence / offences fall / falls
6. Case Search Details
Search Date:
Search Place:
Searching Orgn
Details of seizures
# Value of Goods Seized – EMV: ----------------------------------------

CIF: -----------------------------------------
# Cash seized – Indian Currency : -----------------------------------------
- Foreign Exchange: -----------------------------------------
# Jewelry Seized -----------------------------------------
# Imp. Documents Seized : -----------------------------------------
n
# Other valuables like sharesl
r.i
FDRs, etc. seized : -----------------------------------------
# Seized Drug Type : -----------------------------------------

# Qnty. Of Drug Seized :
e -----------------------------------------
nc
8. Details of offender Companies / Firms
re
Sl. No. Company Company Address ( es ) IT, PAN No., Ward,

Name ( K-known, D-declared, S-discovered ) Circle
fe
.re
w
9. Offender’s Details
w
Sr. No. Name of the Person (BLOCK LETTERS) Residential Address (es).
w
1.
Aliases
1. 2.
2.
3. 4.
3.
Personal Identification Mark
Father / Husband’s Name
Date of Birth
Nationality ------------------------------ Business Address (es)

1
*Business / Occupation (s) (select codes) 2 111
3
www.referencer.in
49
Offender’s Arrest & Detention Details
Arrest Date Arresting organization Detention Date Detaining Orgn.

(dd / mm / yy)
Any Alert issued? If yes,
Alert Date (dd / mm / yy) Alert Issuing Agency
Area of Operation Mode of Offence
10. Offender’s Passport Details
Pass port Number Issue Place Issue Date
1.
2.
11. Offender’s Associate (s) Details
n
r.i
Associate’s Name Occupation code
1. e
2.
nc
12. Offender’s Income Tax details
re
IT PAN NO. WARD CICRLE

fe
1.
.re
2.
3.
w
w
13. Offender’s Bank Details

w
Bank Name Branch Account No.

1.
2.
3.
14. Offender’s Previous Offence (s) during the last five years
Sr. No. Reporting Agency Type of Date and Place Total Value
Case file offence* of seizure of seizure
15. Details of offender’s associated Companies / Firms.

Sr. No. Company Company Address (es) IT. PAN No.
www.referencer.in
50
Name (K – known D – declared S – discovered) ward, Circle

1.
2.
3.
4.
5.
------------------------
First Dispatch
Second Dispatch
Final Dispatch
CENTRAL ECONOMIC INTERLLIGENCE BUREAU
n
r.i
Central Information Bank on suspect Major Economic Offenders
FORMAT – II (Update)
e
nc
1. Reporting agency Code .......................................................
2. Running Serial No. Of Reporting .......................................................

Agency (Calendar Yr. Wise)
re
3. Reporting Agency’s offence Case .......................................................

fe
File Reference Number
4. CEIB Unique Code .......................................................

.re
5. Name of Main Offender Company / .......................................................

Firm / Individual
w
6. Date of Search / Detection of offence .......................................................

w
7. Value of Offence .......................................................

w
Amount of Duty Evaded on Seized Goods: .......................................................

Estimated Concealment of Income / wealth /
Duty Evaded: .......................................................
Estimated Amount of FERA Violation: .......................................................
8. Commodity Involved (with “Harmonised

System of Nomenclature” Code)
Description of Commodity: .......................................................

HSN Code: .......................................................
9. Exemption Notification No. Involved .......................................................
10. Legal Provisions Invoked or Likely

To be Invoked (e.g; For Confiscation /
Penalty) to deal with the offence
First: Section / Rule / Regulation Act / Rule / Regulation------------------------

Second: Section / Rule / Regulation Act / Rule /Regulation-------------------------
Third: Section / Rule / Regulation Act / Rule / Regulation------------------------
www.referencer.in
51
11. Offence Code (to be picked from the enclosed list)

And Brief Description of modus – Operandi
Offence Code for

Major Offence (s): ---------------- ------------------ ------------------ Other
Offence (s): ----------------- ------------------ ------------------
Modus – Operandi: ------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
12. Country / Place of Origin of Commodity -----------------------------------------
13. Country / Place of Destination of Commodity -----------------------------------------
14. Whether the Company / Firm / Individual Involved

is a Central Excise Registered Manufacturer /
Dealer / Stockiest / Sales Agent ? Yes / No
If Yes, indicate the: -----------------------------------------

Business Address: -----------------------------------------
Concerned Central Excise Commissionerate: -----------------------------------------
n
-----------------------------------------
r.i
15. COFEPOSA / SAFEMFOPA / PITNDPS Order (if any)
Reference No. with Date & Issuing Authority’s Name:
e
nc
First: Date:_________Issuing_Authority:________________Act:___________
Second:Date:_________Issuing_Authority:________________Act:___________
Third: Date:_________Issuing_Authority:________________Act:___________
re
16. Date of Detention under COFEPOSA / PITNDPS, if any. --------------------------

fe
17. Date of Action Under SAFEMFOPA / Chapter 5A of NDPS Act. -------------------------
18. Value of Property (ies) forfeited under

.re
SAFEMFOPA / NDPS Act. -----------------------------------------
19. Date of Launching Prosecution, if any -----------------------------------------

w
w
*********************
w
Annexure to Format I
Central Information Bank on suspect Major economic Offenders
List of Business / Occupation Codes

(For items 9 & 11 of Format I)
Business / Occupation Code
1. Advocate 001
2. Architect 002
3. Appraiser / Valuer 003
4. Artist 004
5. Auctioneer 005
6. Auditor 006
7. Banker / Financier / Money Lender 007
8. Chartered / Cost Accountant 008
9. Commission Agent / Broker 009

10. Contractor / Builder 010
www.referencer.in
52
11. Decorator 011

12. Doctor 012
13. Engineer 013

14. Goldsmith / Jeweler 014
15. Hawala Agent 015
16. Industrialist 016
17. Insurance Agent 017

18. Journalist 018
19. Landlord 019
20. Manufacturer 020
21. Photographer 021

22. Publisher 022
23. Real Estate Agent 023
24. Retail Trader 024
25. Tax Consultant 025

26. Travel Agent 026
27. Wholesale Trader 027
28. Transporter /Fleet Operator 028
29. Job Worker 029
n
30. Company Executive / Employee 030
r.i
31. Others (please specify) 031
e
nc
re
fe
Annexure to Formats I & II
Central Information Bank on Suspect Major Economic Offenders

.re
List of Offence / Modus – Operandi Codes

(For items 4,9 & 14 of Format I and item 11 of Format II)
w
Offence / Modus – Operandi Code

w
1. Misuse of Banking Channel 001

w
2. Money Laundering through Bank 002

3. Money Laundering through Hawala 003
4. Investment in Real Estate 004
5. Benami Transactions 005

6. Use of Hawala Entries 006
7. Misuse of Incentive in Income Tax (like Sec. 80HHc) 007
8. Smuggling of Contraband 008
9. Smuggling of Explosive / Ammunition 009

10. Smuggling of Gold through Land Border 010
11. Smuggling of Gold through Sea 011
12. Smuggling of Gold through Air 012
13. Smuggling of gold through Carrier 013

14. Smuggling of Silver through Sea 014
15. Smuggling of Silver through Air 015
16. Smuggling of Silver through Carrier 016
17. Smuggling of Silver through Land Border 017

18. Misclassification of Product 018
19. Under – valuation of Assessable Value 019
www.referencer.in
53
20. Misuse of Exemption Notifications 020
21. Misuse of various Performa Credit / Set / off / Money

Credit Schemes 021
22. Under – valuation of Imports 022
23. Over – valuation of Exports 023
24. Drawback Frauds 024
25. Import License Violation 025

26. Un-disclosed Investment in Shares, FDRS, other
Securities 026
27. Introduction of Black Money through Bogus
Creditors / Debitors 027
28. Under – invoicing of Sales 028
29. Over – invoicing of Purchases 029

30. Claim of Bogus Expenses / Capital built – up cases 030
31. Introduction of Black Money in the Books of A / Cs
In the form of Squared up Loans 031
32. Under – valuation of fixed Assets 032
33. Wrong Claim of Depreciation / Investment Allowance 033

34. Creation of Capital through Gifts in the names of Minors / Ladies 034
35. Creation of number of Entities to reduce tax 035
n
36. Misuse of MODVAT schemes 036
r.i
37. Suppression of production and unaccounted manufacture 037
38. Clandestine removal of excisable goods 038
39.
e
Wrong or Fraudulent availment of rebate, drawback,
nc
refund and other export incentives 039
40. Technical Offences under Central Excise & Salt Act and
Central Excise Rules not covered above 040
re
41. Illegal sale – purchase of Foreign Exchange in the

Open market 041
fe
42. Illegal sale – purchase of Foreign Exchange by Bank

Employees by having Pseudo Counters 042
43. Bogus Import Remittances through Bogus Import Documents 043
.re
44. Creating NRIs, obtaining Power of Attorney of their NRI

Accounts, Selling checks at premium 044
w
45. Remittances of Foreign Exchange through Hawala Bank TT 045

46. Non – realization of Export Proceeds and retention of
w
Export Proceeds abroad 046

47. Bogus Exports
w
-- Availing VABAL scheme 047

-- Repartition of Black Money as
export proceed 048
48. Importation of Gold and Silver –
Purchased through Hawala 049
49. Carrying of Foreign Exchange through “Diggi” 050
50. Foreign Exchange Transaction
-- through Vostro Accounts 051
-- through Escrow Accounts 052
51. Cross Border Smuggling of narcotics
-- by air 053
-- by sea 054
-- by land 055
-- by post 056
52. Inland smuggling of narcotics 057
52. Clandestine manufacture of narcotic and

Pschotropic substances 058
54. Smuggling of narcotics through carrier 059
www.referencer.in
54
Reporting Agency Codes for Customs & DRI Cases
AGENCY CODE 04
Reporting Agency code
I Directorate of Revenue Intelligence
DRI Headquarters 0400

Ahmedabad Zonal Unit 0401
Banglore Zonal Unit 0402
Bombay Zonal Unit 0403
Calcutta Zonal Unit 0404

Delhi Zonal Unit 0405
Madras Zonal Unit 0406
Surat Zonal Unit 0406
II Commissioners of Customs
Bangalore 0407
Calcutta (Port) 0408
Cochin 0409
Delhi (General) 0410
n
r.i
Goa 0411
Chennai (Port) 0412
Mumbai (General) 0413
New Kandla
e 0414
nc
Nhava Sheva 0415
Sahar International Airport 0416
Visakhapatnam 0417
re
Ahmedabad 0418
fe
Lucknow 0419
NE Region, Shillong 0420
Patna 0421
.re
Calcutta (Preventive) 0422
Amritsar 0423
w
Calcutta (Airport & Aircargo) 0424

Chennai (Airport & Aircargo) 0425
w
Delhi (Aircargo) 0426

w
Delhi (ICD) 0427

Jodhpur 0428
Mangalore 0429
Mumbai (Import) 0430
Mumbai (Export) 0431

Mumbai (Aircargo Complex) 0432
Mumbai (Preventive) 0433
Pune 0434
Trichy 0435
@@@@@@@@@@@@
www.referencer.in
CHAPTER – FIVE
SEARCHES
1. Introduction : One of the most important duties of the Customs Officers is that in which he will be
called upon to conduct a search or to supervise other officers in a search operation. The chances of
conducting a successful search increase proportionately with the planning, systematic procedure and
thoroughness, which go into a search operation, whether it be directed to a person, premises, vehicle,
vessel or some other object.
2. Definition : A ‘search’ can be defined as the examination of an individual’s house, premises or

person for the purpose of discovering proof of his guilt in relation to some crime or misdemeanor.
3. Empowerment : Chapter XIII of the Customs Act, 1962, deals with searches, seizures, etc.
Sections 100, 101, 102, 103, 105, and 106 of the Customs Act, 1962, empower an Officer of Customs to
carry out searches. Under Section 42, 43 and 44 of the NDPS Act, 1985, also, a Customs Officer is
n
empowered to carry out searches.
e r.i
4. Categories : Searches can be of three different categories as under :
nc
1. Search of the person.
2. Search of conveyances/animals
3. Search of premises.
re
4.
fe
5. Search of Persons under the Customs Act, 1962 :

(i) Three sections namely, Sections 100, 101 & 102 of the Customs Act, 1962 deal with the power to
.re
search persons. Section 100 of the Customs Act, 1962 stipulates the general power. Section 101 of the
Customs Act, 1962 extends the scope of the general power in respect of specified commodities and
w
Section 102 of the Customs Act, 1962 stipulates the procedure to be adopted in connection with the
search of such persons. The provisions of Section 102 of the Customs Act, 1962 apply to searches under
w
both the Sections 100 and 101.

w
(ii) For proper understanding vis-a-vis, analysis of search persons, it is convenient to seek answers to the
following questions,- (a) Who are the persons competent to search suspected persons? (b) What are the
circumstances in which such persons can be searched? (c) Which of the persons can be searched? (d)
For what purposes the persons can be searched?
6. The persons competent to search

Searches under Section 100 Of the Customs Act, 1962, can be conducted by the "proper officer'
of the Customs. Searches under Section 101 of the Customs Act, 1962 can be conducted only by "an
officer of Customs empowered in his behalf by general or a special order of the Commissioner of
Customs." The Commissioner of Customs has specified the following officers as proper officers: Under
Section 100 of the Customs Act, 1962 All officers of the Preventive Department except Clerks. Under
Section 101 & 103 of the Customs Act, 1962 All officers of the Preventive Department except Clerks &
Class IV officers.
7. According to Section 5(2) of the Customs Act, 1962, an officer of Customs rnay exercise the
powers and discharge the duties conferred or imposed under this Act on any other officer of Customs who
www.referencer.in
56
is subordinate to him. In view of this provision, the designation of the officer of the lowest rank authorised
to perform the functions under the particular section of the Act has been indicated.
8. The circumstances in which persons can be searched

Under Section 100 of the Customs Act, 1962, a person can be searched in a Customs Area if the
proper officer has reason to on to be searched has secreted on person, any goods liable to confiscation
or any documents relating thereto. Under Section 101 of the Customs Act, 1962, the search can be
conducted outside the Customs area provided there is reason to believe that the person to be searched
has secreted on person, goods of the specified description which are liable to confiscation or documents
relating thereto. The goods of the specified description are at present (a) gold, (b) diamonds, (c)
manufactures of gold or diamonds, & (d) watches. The list of the aforesaid goods may be extended by
inclusion therein of any other class of goods, which the Central Govt. may specify, by notification in the
Official Gazette.
The expression "Customs Area' has been defined in term of see 2 (ii) and it means "the area of
Customs Station and Includes any area in which imported goods or exported goods are ordinarily kept
before clearance by Customs Authorities”. In the context of vehicles, any person, who has got out of, or
n
is about to get into, or is in a vehicle, which has arrived from, or is to proceed to any place outside India.
r.i
The scope of the power to search has been extended to practically all persons under Section 101 of the
Customs Act, 1962, but the extension is not wide and general. The extension has been circumscribed by
e
the provisions that this extensive power would apply only where there is reason to believe that the articles
nc
secreted are of a specified description, or the documents pertaining to the goods of the specified
description and the same are liable to confiscation.
re
9. Procedure for search of person

fe
(a) Section 102 of the Customs Act, 1962 lays down procedure for search of person. The person to be
.re
searched under Section 101 of the Customs Act, 1962 has the right to be taken the nearest Gazetted
Officer of Customs or Magistrate. If this requirement comes into operation, the officer of Customs has
no other alternative than to take the person to be searched without unnecessary delay to the nearest
w
Gazetted Officer of Customs or Magistrate. The Act specifically provides that the person to be
w
searched can be detained until the officer of Customs can bring him before the Gazetted Officer of
w
Customs or the Magistrate. The Gazetted Officer of Customs or the Magistrate before whom the
suspected person is brought, is competent to decide if there is any reasonable ground for search and
he has the obligation to discharge the person forthwith if he comes to the conclusion that there is no
reasonable ground for search.
(b) Before conducting the search of the person, the Customs officer shall call upon two or more persons
to attend and witness the search. The Customs officer can issue an order in writing to the persons for
attending and witnessing the search. The Act requires that a list of all things seized in the course of
search in form of statement of facts/events shall be prepared by the Customs officer and shall be
signed by the witnesses. The Act does not require that even nil list should be prepared.
(c) The Act require that no female shall be searched by any one except a female.
(d) In case the contraband looked for is precious stones, a metal detector will show nothing and the
visual examination of the armpits, public parts, groins and inside of the thighs has to be thorough. X-
ray examination should be resorted to if suspicion of concealment in body cavities exists. In no case,
the search should be confined only to feeling the various parts of the suspect person.
www.referencer.in
57
10. Recommendation and guidelines for search

When conducting searches of person, there are some recommendations and guidelines and the
officer should constantly bear in mind. The most obvious of these is the need for two officers to be
present whenever an individual is to be thoroughly searched. The second officer can physically assist in
controlling the suspect if necessary. He can also witness the seizure of evidence or testify concerning any
accusations made by the suspect about the conduct of the searching officer.
There are three types of searches that are commonly made of individuals: (a) the frisks search; (b)
the fields search; and (c) the strip-search.
(a) Frisk search

The frisk is a cursory search also known as a pat-down. It is usually a brief search for weapons and is
limited to the general area of the outer clothing. A frisk may be conducted on persons not subject to
arrest. A frisk is lawful when the officer (1) has observed suspicious activity on the part of the person
being frisked; (2) has reason to believe that the suspect is armed; and (3) the officer limits himself to a
search for weapons. A suspect may also be stopped and searched when a reliable informant has advised
that the suspect is armed. A frisk under either decision is restricted to a quick pat- down or its equivalent,
n
plus an examination of bags or other objects that may contain weapons.
r.i
(b) Field search
A field search is conducted on the scene of arrest. The search is done subsequent to
e
handcuffing. This is a systematic search performed by dividing the body down the middle and searching
nc
one-half of the body at time. This search is conducted for weapons, narcotics, narcotics paraphernalia
and other contraband goods.
re
(c) Strip search

The Strip Search is conducted in a controlled and private environment such as a jail cell or detention
fe
area. This suspect is made to undress completely and all clothing is thoroughly searched. While in the
.re
wall position, the suspect is given a through search which includes body cavities – mouth, ears, nose and
rectum.
w
11. Rectum concealment

w
Rectum is lower part of the large intestine between the sigmoid flexure and anal canal.
w
The rectal region of the human body is a convenient cavity suitable for secreting contraband items like
gold, silver and narcotics. Smugglers regularly employ carriers, both male and female, who specialize in
carrying contraband in their rectums.
This is a very painful process and calls for great physical endurance. The standard procedure
employed is to abstain from consumption of solid food several hours prior to the insertion, of the material.
The bowels are purged by taking suitable laxatives. Thus all waste material inside the body is flushed out.
Fresh intake of solid food is restricted well in advance. The contraband meant for concealment is reduced
in size and length. Precious metals are converted into small pellets and put into latex condom. The
condom and the anal region are subjected to large doses of lubrication in order to facilitate easy
movement. Depending on the body size and structure, approximately, between ¼ kg and ¾ kg, can be
stored inside the rectum.
Once inside the rectum, the body is capable of retaining this foreign matter for duration of four to six
hours. After this duration, it becomes difficult to retain the material inside. The pressure to eject the
material becomes tremendous.
Customs personnel are able to detect cases of rectal concealment because the presence foreign
material inside the rectum affects the normal gait of the person. Normal waling becomes difficult, the legs
www.referencer.in
58
do not appear steady, and the person always adjusting his posterior posture. If such persons are
examined, the heavy lubrication of the anal region becomes apparent. The possibility of bloodstains
cannot be excluded. The material is ejected in the normal way and if necessary medical assistance is
sought.
Vaginal concealment
The rnusculo- membranous passage extending from the cervix uteri to the vulva, is the vaginal passage
in females. This affords a safe and private area for effective concealment. Vaginal concealment has been
used from time immemorial by female couriers, spies and underground activists.
The advantages of this system of concealment area:
• Easy to insert and retrieve
• Does not cause physical injury
• Can be retained in the body for a long duration of time
• Cannot be detected easily
• When used in conjunction with sanitary napkin, it is a highly effective form of concealment.
The vaginal concealment technique is superior to the rectal concealment because of the above
n
advantages.
r.i
Females can be searched only by females, hence trained female searchers are essential in an
Investigating team. Since these are delicate the sensitive issues, the trained officer should be able to
e
detect potential suspects by cleverly reading facial and body language. Any individual resorting to such
nc
devious means of secreting goods in their private parts are prone to display:
• A guilty look;
re
• An embarrassed look;
fe
• Unseemly haste to leave the place as quickly as possible;

• Get unnecessarily hostile when questioned; and
.re
• Put up resistance to be searched.

Only a highly observant female officer can successfully detect cases of vaginal concealment by visual
w
observation. It would be most advisable to used confirmatory test by way of hand-hold metal detector,
which has so far proved to have unfailing records.
w
w
12. Power to screen or x-ray bodies

(a) Under Section 103 of the Customs Act, 1962, bodies of persons, who are liable to be searched under
Section 100 of the Customs Act, 1962, can be screened and x-rayed if the proper officer has reason
to believe that such a person has any goods liable to confiscation, secreted inside his body.
The proper officer should detain the person suspected by him and produce him without unnecessary
delay before the nearest Magistrate. The Magistrate has the power to determine if there is reasonable
ground for believing that the suspected person has any goods liable to confiscation, secreted inside his
body. The Magistrate has the obligation to discharge the person forthwith if he comes to the conclusion
that there is no such reasonable ground. On the contrary, if the Magistrate has for believing that the
person produced before him has any goods liable to confiscation, secreted inside his body and he is also
satisfied that for the purpose of discovering such goods, it is necessary that the body of such person
should be screened or x-rayed, he may make an order to that effect. When such an order is made, the
proper officer shall, as soon as practicable, take the suspected person before a Radiologist possessing
qualifications recognised by the Central Government for the purpose of this Section. The Radiologist
shall, after screening or x-raying the body of such person, forward his -report together with any x-ray
www.referencer.in
59
pictures taken by him .to the Magistrate without unnecessary delay. When, on receipt of the Radiologist's
report, the Magistrate is satisfied that any person has any goods, liable to confiscation, secreted inside his
body, he may direct that suitable action for bringing out such goods be taken on the advice and under the
supervision of a registered Medical Practitioner and such person shall be bound to comply with such
direction.
(b) It is advisable to obtain order of the Magistrate for keeping the person in the custody of the Customs
officers and also for the period for which the person may be kept in custody.
(c) The aforesaid procedure for the screening or. x-raying of the bodies of suspected person can be
waived only in the case of a person who admits that goods liable to confiscation, area secreted inside
his body and who voluntarily submits himself for suitable action being taken for bringing out such
goods.
13. Refusal to be x-rayed

Section 134 of the Customs Act, 1962 stipulates that - If any person –
(a) resists or refused to, allow a Radiologist to screen or to take x- ray picture of his body In accordance
with an order made by Magistrate under Section 103 of the Customs Act, 962; or
n
(b) resists or refused to allow suitable action being taken on the advice and under the supervision of a
r.i
registered Practitioner for bringing out goods liable to confiscation secreted in his body, as provided in
Section 103 of the Customs Act, 1962; he shall be punishable with imprisonment for a term which
may extend to six months, or with fine, or with both.
e
nc
14. Search of Conveyance/Animals
re
Section 106 of the Customs Act, 1962 stipulates that where the proper officer has reason to belief that
any aircraft, vehicle or animal in India or any vessel in India or within the Indian Custom water has been,
fe
is being, or is about to be, used in the smuggling of any goods or any carriage of any goods, which have
.re
been smuggled, he may, at any time, stop any such vehicle, animal or vessel or, in the case of an aircraft,
compel it to land and –
(a) rummage and search any part of the aircraft, vehicle or vessel;
w
(b) examine and search any goods in the aircraft, vehicle or vessel or on the animal; and
w
(c) break open the lock of any door or package for exercising the powers conferred by clauses (a) and
w
(b), if the keys are withheld.

(2) Where for the purpose of sub-section (1)
(a) (a) it becomes necessary to stop any vessel or compel any aircraft to land, it shall be lawful for any
vessel or aircraft in the service of the Government while flying her proper flat and any authority
authorised in this behalf by the Central Government to summon such vessel to stop or the aircraft to
land, by means of an international signal, code or other recognised means, and thereupon such
vessel shall forthwith stop or such aircraft shall forthwith land; and if it fails to do so, chase may be
given thereto by any vessel or aircraft as aforesaid if after a gun is fired as a signal the vessel fails to
stop or the aircraft fails to land, it may be fired upon;
(b) it becomes necessary to stop any vehicle or animal, the proper officer may use all lawful means fail,
the vehicle or animal may be fired upon.
15. Automobile searching

The search of an automobile must be conducted methodically and thoroughly. The officer must have
some definite notions as to where to look, and nothing must be dismissed as impossibility. The officer
www.referencer.in
60
must continue the search for evidence until the entire vehicle has been covered, even if he uncovers
some contraband during an early part of the search.
Experienced investigators have learned that contraband is frequently hidden In relatively few locations on
the vehicle. The motor and dashboard recesses, the seats, and the trunk compartment are the most
widely used of these areas. However, the frequency of past usage of these hiding places must not lead
the searching officer to overlook other places of concealment. The vehicle is divided into three search
areas: (1) the front end, (2) the interior, and (3) the rear. Each section must be closely examined before
the search is carried to the next area.
(1) The front end: The grill, the bumper and the fender area provide excellent hiding places. Narcotics
may be placed in a container between the grill and radiator or secured to the grill. Contraband has
been discovered attached to the inner surface of the fender by means of a magnet, a magnetized
container or tape. The back of the license plate, the bumper and the underside of the undersigned of
the gravel pan should also be examined. The numerous recesses of the motor adjacent area are
frequently used to hide narcotics. A small packet of narcotics may be placed in a watertight container
and suspended inside the radiator. The battery, the battery case, the engine block, the clutch and
starter housings have all been used in the past. Close attention must be paid to the ventilating ducts
n
or any container found attached to the side of the motor well. The air filter of the carburetor should be
r.i
examined The body frame and supports also provide places of concealment that should be checked.
(2) The interior: The back of the dashboard Is undoubtedly the most extensively used place of
e
concealment for narcotics packages. The profusion of electric wires, the almost inaccessible recesses
nc
and availability to the occupants all contributes to the popularity of this location. It is not uncommon to
find within this area items attached by tape or pinned to the wiring. Fresh air ventilating outlets are
re
also frequently used to hide contraband.

The ability to locate evidence in this area will necessarily depend on search tactics. The rear portion
fe
of the dashboard can be thoroughly scrutinized with a mirror held in one hand and the flashlight pointing
.re
up under the dash. Merely glancing in the general direction of this area and groping blindly into the dark Is
Inadequate. The mirror also may be used under fenders and in other areas where visibility is -difficulty.
The area beside and under the seats is used frequently to hide contraband. Remove the seats whenever
w
possible, rather than merely looking or feeling under and between seat cushions. The front and rear
w
floormats are also removed whenever possible since contrabands are often hidden under this floor
w
covering. Each object found in a vehicle must be inspected. Any flashlight, book, magazine, or container
found in the automobile must be closely scrutinized.
3. The rear: The trunk must be given a complete examination and any item found in this compartment
must be inspected, including clothing, rags, containers and tools. The spare tyre wheel must be checked.
The interior of the trunk lid must also be examined for possible contraband. The underside of the
fenders, the bumper and the gravel pan must all be carefully searched.
16. Protection against criminal liability under Section 155 of the Customs Act, 1962.
In Costao Fernandes V State (1996) 7 SCC 513: (1996) 82 ELT 433 (SC), the court observed that it is
necessary to indicate a note of caution in the matter of consideration of protection against criminal liability
if sought for under Section 155 of the Customs 1962 at the threshold of the criminal trial. Since such
immunity is claimed at the threshold, the court should carefully scrutinise the relevant facts and materials
placed before it for the purpose of finding (a) that the concerned officer was authorised to act for
prevention of smuggling activity and in fact had acted bona fide in exercise of his duties and functions in
preventing the smuggling activities being carried or about to be carried, (b) there are- prima facie
materials to Indicate that such officer had honestly attempted to stop the conveyance for effecting search
www.referencer.in
61
of the same, (c) that such an attempt to stop the vehicle was sought to be frustrated either by not
stopping the vehicle or by attempting to forcibly taking away the vehicle despite attempt by the concerned
officer to stop the vehicle and (d) that recourse to use of force on the driver or occupant of the vehicle was
apparently necessary to immobilise the vehicle or to save himself from imminent danger of personal risk.
If on consideration of the materials placed before the court, a possible view can objectively be taken that
in discharge of the duties and functions under Section 106 of the Customs Act 962, a competent officer
had bona fide used force is not just a rise for high-handed action an his part which was not at all
necessary In the facts of the case but prima facie there is justification for the course of action pleaded by
the officer, the court would give effect to the protection under Section 155 of the Customs Act,1962 by
dropping the criminal case initiated the concerned officer ( Bhappa Singh v Ram Pal Singh 1981 (Supp)
SCC 12 : 1981 SCC (Cri) 602 relies on ).
17. Power to search the premises

Section 105 of the Customs Act, 1962 empowers Assistant Commissioner of Customs, etc. to search any
place either personally or through other officers duly authorised, if he has reason to believe that any
goods liable to confiscation, or any documents or things which in his opinion will be useful for or relevant
n
to any proceeding under the Customs Act, 1962, are secreted there. The procedure for such search will
r.i
be as provided in the Code of Criminal Procedure, as far as may be, subject to the modification as
provided by sub-section (2) of the section. The object of the section is to make a search for the goods
e
liable to be confiscated or the documents secreted in any place - which are relevant to any proceeding
nc
under the Customs Act, 1962. The legislative policy reflected In the section is that the search must be in
regard to the two categories mentioned therein, namely, goods liable to be confiscated and documents
re
relevant to a proceeding under the Customs Act, 1962.

In this context, the term 'document ' occurring in Section 105 of the Customs Act, 1962 has not
fe
been defined in the Act. But Section 3 (18 ) of the General Clauses Act defines the term as hereunder:
.re
“document' shall Include any matter written or expressed or described upon any substance by means of
letters, figures or marks, or by more than one of these means which is intended to be used, or which may
be used, for the purpose of recording matter'.
w
w
‘Document’, as defined in Black’s Law Dictionary, 5th Edition, is ‘an instrument on which is recorded, by
w
means of letters, figures, or marks, the original official or legal form of something which may be evidently
used. In this sense, the term ‘document’ applies to writings; to words printed, lithographed or photogra-
phed; to maps or plans; to seals, plates- or even stones on which inscription are cut or engraved. In the
plural, the deeds, agreements, title papers, letters, receipts, and other written instruments used to fact.’
18. ‘Secreted’ - meaning of - The argument that the word 'secreted’ is used In Section 105 of the
Customs Act, 1962 In the sense of being hidden or concealed and unless the officer had reason to
believe that any document was so concealed or hidden, a search could not be made for such a
document, is not acceptable. The word ‘secreted' must be understood in the context in which the word is
used in the section. In that context, it means ‘documents’ which are kept not in the normal or usual place
with a view to conceal them’ or it may even mean 'documents which are likely to be secreted'. In other
words, documents or things which a person is likely to keep out of the way or to put in a place where the
officer of law cannot find it. It Is in this sense that the word 'secreted’ must be understood as it Is used in
Section 105 of the Customs Act, 1962.
www.referencer.in
62
19. Reason to believe

To search Is the main weapon In the hands of a Customs engaged in the detection of smuggling
activities. But, pre-condition to justify the act is that he should have reason to believe that the place to be
searched has goods or documents secreted about it, which will be useful or relevant to any proceedings
under the Act. This obvious reason behind the legislative provision is to save the citizen from
unnecessary harassment. The expression ‘reason to believe’ which is the key to almost all action under
the Customs Act, 1962, the Supreme Court made it clear that the expression is not synonymous, with
subjective satisfaction of the officer. The belief must he held in good faith; it cannot merely be a pretence.
It is open to the court to examine the question whether the reasons for the belief have a rational
connection or a relevant bearing to the formation of the belief and are not extraneous or irrelevant to the
purpose of the Section.
Under Section 105 of the Customs Act, 1962, the Customs officer can be himself issue a warrant
if he himself has 'reason to believe'. He can in fact, though not lawfully, also do the act of issuing warrant
even where really he has no reason to believe though he mentions in the warrant that he has reason to
believe. But, in such a case, he is liable to punishment under Section 136(2) (c) of the Act. Obviously, the
Legislature considered it necessary to introduce provision in Section 105, by giving power to the Customs
n
officer to issue warrant himself but introduced safeguards by way of fixing a high rank for the officer and
r.i
providing under Section 136(2)(c) for his liability to punishment if he abused the power entrusted to him
under Section 105of the Act.
e
It is not possible to lay down precisely or exhaustively as to what constitutes ‘reason to believe’.
nc
It would depend on various circumstances. The issue of a warrant and the reason to believe for issue of a
warrant would involve the following elements: (a) Articles of search; (b) place in which they are secreted;
re
(c) manner In which they are secreted; (d) person who is in possession of the articles of search or the
place where they are secreted. It may be that the information which the Warrant officer has regarding
fe
each of the elements is not precise or absolutely certain without any possibility or doubt. But still if the
.re
information is such as leads him to believe that articles of search are secreted in a place which is
concrete, he may thereby have 'reasons to believe' as contemplated in Section 105. He may in such
circumstances issue a warrant even he does not know the name of the person who is in possession of the
w
articles of search or the place where they are secreted.

w
w
20. Procedure to be observed by the Customs officer while conducting a search

The Customs Act does not provide for any special procedure to be followed in conducting a search.
Sub-section (2) of Section 105 of the Customs Act, 962, however, provides that the provisions of the
Code of Criminal Procedure, 1898, relating to searches shall, ‘so far as may be’, apply to searches under
the Section subject. to modification as specified therein. As regards the procedure for search is that if the
Assistant Commissioner of Customs has reason to believe that any goods liable to confiscation or any
documents or things are secreted in any place, he may authorise any officer of Customs to search or
may himself search for such goods, documents or things. An officer of Customs conducting a search has
to observe the following formalities under the Criminal Procedure Code.
(a) The person of the officials and of the search witnesses must be searched before they are allowed to
enter premises so as to avoid any suspicion that any member of the search party had planted the
thing recovered, surreptitiously in the premises;
(b) The officer of Customs about to make a search shall call upon two or more respectable inhabitants of
the locality in which the premises to be searched Is situated to attend and witness the search
respectable person is one who is impartial and on whom the owner and occupier of the premises
searched can prima facie rely; Presence of Independent witness is an essential requirement of
www.referencer.in
63
Section 100(4) to (8) of the Criminal Procedure Code and therefore of Section 105 of the Customs
Act. Even though Section 100 of the Criminal Procedure Code says that the witness must be of the
same locality, this is merely directory and not mandatory. So long as the persons are respectable,
they can be from a different locality, An omission to get witness of the same locality will, therefore, be
at the most an act of irregularity and will not render such as illegal. If respectable persons are not to
be found very near the premises to be searched, it will not be illegal to bring person from half a mile
away.
(c) The search shall be made in presence of such witnesses and a list of all things seized in the course
of the places in which they are respectively found shall be prepared by such officer or other persons;
(d) The said list shall be signed by such witnesses;
(e) The occupant of the place searched or some person on his behalf shall be permitted to attend during
the searches;
(f) The copy of the list prepared and signed by the witness shall be delivered to such occupant.
(g) Where any person in or about such place is reasonably suspected of concealing about his person or
any article for which search shall be made by another woman with strict regard to decency. A list of all
things recovered from the possession of such persona shall be prepared and a copy thereof shall be
n
delivered to such person.
r.i
(h) Under Section 47 (2), Cr. P.C., the officer of Customs is authorised to break open any outer or inner
door or window of any house or place, whether that of the person to be arrested or of any other
e
person, if after notification of his authority and purpose, and demand of admittance duly made, he
nc
cannot otherwise obtain admittance.
(i) If any such place is an apartment in the actual occupancy of a woman (not being the person to be
re
arrested, who according to Customs, does not appear in public) such person or officer of Customs
shall, before entering such apartment give notice to such woman that she is at liberty to withdraw.
fe
and shall afford her every reasonable facility for withdrawing and may then break open the apartment
.re
and enter it.

(j) Under Section 165, Cr.P.C., a Customs officer has to make a search after completing certain
formalities. One of these is the statement of the grounds of proof and specifications of the articles
w
searched. Since sub-section (2) of Section 105 of the Customs Act, 1962, relating to searches says
w
that the provisions of Criminal Procedure Code, 1898, shall apply to searches made it is necessary to
w
observe these formalities also while conducting a search under Section 105 of the Customs Act,
1962, otherwise there will not be compliance of sub-section (2).
21. Offences by officers of Customs

Sub-section (2) (c) of Section ,136 of the Customs Act, 1962 stipulates that, if an officer of Customs
searches or authorises any other officer of Customs to search any place - without having any reasons to
believe - that any goods, documents or things of the nature referred to in Section 105 are secreted in that
place, he shall be punishable with imprisonment for a term which may extend to six months, or with fine,
which may extend to one thousand rupees, or with both. Thus, sub-section (2) of the Section provides for
adequate penal action against a Customs official, who regardless of the provisions of the statute searches
or causes to be searched any place without reasonable belief that any goods, documents or things of the
nature defined In Section 105 are secreted in that place. In other words, the provisions of sub- section (2)
aim at screening innocent people from undue harassment in the hands of irresponsible or dishonest
Customs officers, under threats of penal action.
www.referencer.in
64
22. Preliminary steps for the Execution of search warrants:

Before a search warrant is actually executed, the following preliminary steps shall be taken.
A complete survey should, in the first instance, be made of the building, premises/street/lane for
the purpose of having a first hand knowledge of the location of such building/premises/street/lane etc. as
also any special peculiarities of these places.
In the light of the information gathered by the survey, a co-ordinated action should be drawn up
by the leader of the search party and submitted for Assistant Commissioner (Preventive or Rummaging)’s
approval. This plan will inter-alia provide for (I) the number of Officers and Class IV (Group D) staff
required for the raiding party, (ii) the detailing of Officer at various vulnerable points and (iii) suitable
briefing regarding the things the officers are to look for and the precautions they should take.
Search Warrant – Execution of –
(a) The form of search Warrant to be used for searches shall be as under :
No ………………….of …………(date)………
Whereas there are reasons to believe that prohibited and dutiable goods liable to confiscation
and documents and things, which in may opinion will be useful for and relevant to proceedings
under the Customs Act, 1962, are secreted in the places mentioned below.
n
I,………………………………………………Assistant Commissioner of Customs,
r.i
…………..Department, ……….Customs House, hereby authorise Superintendent/s Shri
…………………………….and Preventive Officers of Customs S/Shri …………………………….
e
for the aforesaid prohibited and dutiable goods, documents or things in the places mentioned
nc
herein above and seize the same under Section 110 of the Customs Act, 1962 and produce them
forthwith before me, to be dealt with under the Provisions of the Customs Act, 1962.
re
Given under my hand and seal of the Officer this day of …….(date)…..
Assistant Commissioner of Customs, ……….(.Deptt.)
fe
(b) The search warrant should be prepared in Triplicate. All these copies after execution will be
.re
suitably endorsed to the effect that the search warrant has been executed. In the event of non-
execution of the search warrant for any reason, the search warrant would be endorsed to the
effect that it is unexecuted. Thereafter, the file should be put up to the Additional Commissioner
w
as laid down in Section 105 (2) of the Customs Act, 1962.

w
(c) The actual search under cover of the search warrant shall be executed as if it is a search made
w
under the provisions of the Code of Criminal Procedure. The search shall be conducted in
presence of two independent witnesses and the search list (panchanama) will be prepared in
Triplicate. A clear copy will be furnished to the person whose place is searched, the triplicate
copy of the search list (panchanama) alongwith the duplicate copy of the search warrant will be
retained in the file giving the material relevant to the grounds of belief the original Search Warrant
and the original search list (panchanama) duly endorsed will be returned to the Officer-in-charge,
Prosecution Unit/Legal Section for being retained as permanent record after Assistant
Commissioner of Customs has duly perused the endorsement with respect to the execution of the
search warrant and search Unit giving the list of articles seized during the course of the search.
A search Warrant Register shall be maintained by the Legal/Prosecution Unit in the
proforma shown below:
____________________________________________________________________________________
Sr. No. S. W. No. Date of Date of Execution Name of Officers Executing
issue and time the search warrant
1 2 3 4 5
www.referencer.in
65
File No. Particulars of Description of goods/ Approximate value

premises documents/things seized of goods
6 7 8 9
Last date before which Adjudication Order Date of release of the seized Remarks
S/C memo must issue goods/documents/things.
10 11 12 9
(d) When any searches are conducted in town, search list (Panchanama) will have minimum 4
copies. The original Panchanama along with the original of the Search Warrant and a copy of the
Seizure report shall be placed in the Prosecution file after perusal of the Assistant Commissioner.
The second copy of the Search List along with a copy of the Search Warrant and copy of seizure
Report shall be placed in the Investigation File (Penalty File). A third copy of the panchanama
along with seizure Report will be placed; in the Reward file. A clear copy of the Panchanama
n
should be given to the person from whose premises the goods are seized.
(e) Endorsement to be made on search warrants.
1. Submitted unexecuted e r.i Preventive Officer
nc
2. Submitted
The place of ………………….was searched under Search Warrant No. ………………………
re
dated…………………….on………………….by me with the assistance of ……………………..Intelligence

Officer(s)/ Preventive Officers and the goods and the documents were seized.
fe
Preventive Officer.
23. RUMMAGE OR SEARCH OF VESSELS
.re
a) Object of search
An effective; method of prevention of smuggling is rummage of suspect vessels in the port. In a
w
rummage the entire vessel has to be thoroughly searched for prohibited and restricted goods. (Viz. opium
w
and other dangerous drugs, arms and ammunitions, gold and silver bullion, foreign and Indian Currency in
excess of the permissible limits, obscenities, seditious literature, counterfeit coils, Leathers, fountain pens,
w
watches, other consumer luxury goods the import and export of which are restricted and other goods
which have not been duty declared but have been concealed in any; of the various parts of the vessels
including the engine room, bridge, officers and crew quarters, saloons, cargo, hatches, lockers, life boats,
coal bunkers, ventilators, paneling of cabins, cofferdam etc.
b) Rummage of vessels – Safety precautions to be observed:
The Superintendent or I.O. in-charge of the rummaging party will ensure that the officers and
Sepoys under them take adequate precautions to safeguard themselves as well as the vessel under
rummage:
The nature of all the precautions to be taken in this connection cannot normally be enumerated
but this shall include the following:
(i) Informing the Master of the Vessel or the Ship’s Officer/Engineer on duty before commencement
of a rummage.
(ii) Informing the Ship’s Officer/Engineer concerned before any oil tanks or water tanks, cofferdams
etc. are opened.
www.referencer.in
66
(iii) Allowing adequate time for escape of gas or fuel, air, before entering into such tanks etc, In such
places, Officers must always work in pairs.
(iv) Making sure that all those who have entered such tanks or other closed place have emerged
therefrom before the tank etc. is closed.
(v) Informing the ship’s Officer/Engineers, before any vital portions of machinery are opened.
(vi) Ensuring that all tank covers etc. are properly refitted and closed after inspection.
(vii) Observing “No smoking” regulations wherever so required on the vessel.
c) Supervision
(i) A rummage is generally carried out under the supervision of Rummaging Superintendent ( R )
who details the officers to different sections of the ship unless there is information about particular
spots on the vessel, in which case the officers have to concentrate on these spots.
(ii) The Customs Officers have in law full access to every part of the vessel. They have also the right
to break open and search any place, box etc. Care should however, be taken to conduct the
work in a manner that would cause the least annoyance and loss.
n
d) Search of vessels
r.i
Before rummaging a vessel, the officer in charge of the Customs party should communicate his
intentions to the Chief Officer (and Chief Engineer, if the engine room is to be searched). Whitest
e
insisting on making a thorough search, officers should avoid giving annoyance to the ship’s
nc
personnel and damaging the ship in any way. They must not search vital parts of a vessel except
in the presence of the Ship’s Officers, provided that such officers do not refuse to attend. Officers’
re
cabins and crew’s quarters should not be searched unless the occupants are present. (Boiler
suits, torches and certain tools should be provided for the use of searching officers).
fe
(ii) Two independent and respectable witnesses should be taken along when a ship is to be
.re
searched.
(iii) When this is not possible and articles or contraband are found, such articles should be allowed to
remain undisturbed in their original concealed place until they have been seen by two witnesses
w
who should be procured as soon as possible.

w
(iv) The containers in which contraband is concealed should also be seized, but if such containers
w
happen to be articles of furniture belonging to the ship, they should not be removed except with
the permission of the Assistant Commissioner in-charge.
(v) In his report, the seizing officer should mention every detail down to the minuets which may have
come bearing on the case, as any ; additional information subsequently recorded may not be
considered, in court, to be reliable by virtue of the fact that it was not recorded in the original
report.
(vi) All seized goods should be properly sealed and labeled, the labels being signed by the witnesses
as well as the accused ( if any ).
@@@@@@@@@@@@
www.referencer.in
CHAPTER – SIX
SEIZURE
PRELIMINARY
The natural corollary of a fructuous search is Seizure. Section 110 of the Customs Act, 1962,
empowers the officers of Customs to seize goods, documents, etc., provided there is reasonable belief
that such goods are liable to confiscation under the provisions of the Customs Act.
Seizure of goods, documents and things under the Customs Act, especially in anti-smuggling
operations, is an important aspect of Customs procedures.
SEIZURE OF GOODS, DOCUMENTS AND THINGS

It has been laid down in Section 110 of the Customs Act, 1962, that-
(1) If the proper officer has reason to believe that any goods liable to confiscation under this Act,
he may be seize such goods:
Provided that where it is not practicable to seize any such goods, the proper officer may serve on
the owner of the goods an order that he shall not remove, part with or otherwise deal with the goods
n
except with the previous permission of such officer.
r.i
(2) Where any goods are seized under sub-sec. (1) and no notice in respect thereof is given
e
under clause (a) of sec. 124 within six months of the seizure of the goods, the goods shall be
nc
returned to the person from whose possession they were seized:
Provided that the aforesaid period of six months may, on sufficient cause being shown, be
extended by the Commissioner of Customs for a period not exceeding six months.
re
(3) The proper officer may seize any documents or things, which in his opinion will be useful for,
fe
or relevant to, any proceeding under this Act.

In this context, the following lines enumerate definitions and elaboration of certain terms
.re
mentioned in the above Section:
‘Proper officer’-who is. - Under sec. 2(34) of the Customs Act ‘proper officer’ in relation to any functions
w
to be performed under the Act, means the officer of Customs who is assigned those functions by the
w
Board or Commissioner of Customs.

As regards to the expression ‘by the Board or Commissioner of Customs “ the Supreme Court in
w
Gopikisan v Asstt. Commissioner of Customs AIR 1967 SC 1298: 1967 Cr LJ 1194 observed that a fair
reading of the provision is that the preposition ‘by’ refers both to the Board and the Commissioner. Both
the Board and the Commissioner of Customs can assign functions to an officer of Customs. And in Durga
Prasad v H. R. Gomes AIR 1966 SC 1209: 1983 ELT 1501, the court held that where the Commissioner
of Customs has assigned the powers of a ‘proper officer’ to the subordinate officer, the said subordinate
officer must himself be deemed to have the powers of a proper officer under sec. 110 of the Customs Act.
Expression ‘seize’- meaning of. – The expression ‘seize’ means to take possession of goods contrary
to the wishes of the owner of the property. Seizure must take place from the custody of an unwilling
person in possession of goods that are liable to be confiscated – Masood Ali v Metropolitan Magistrate
1961 Tax LR 2961 (All). To ‘seize’ means to take possession of forcibly, to grasp, to snatch or to put in
possession –– Black’s Law Dictionary, 5th Edn.
‘Seizure’ is a forcible or secretive dispossession of something against the will of the possessor or
owner –– Black’s Law Dictionary, 5th Edn.
A ‘seizure’ under the authority of law does involve a deprivation of possession and not merely of
custody – Gian Chand v State of Punjab AIR 1962 sc. 496: 1983 ELT 1365.
www.referencer.in
68
Action in sealing the godowns and removing the books of account amount to seizure within the
meaning of sec. 110 of the Act- Vilayat Hussain v Union of India (1997) 95 ELT 19 (MP) (DB)
Reasonable Belief-meaning of – The seizing officer should have reason to believe that the goods in
question are liable to confiscation under the Act. The “reasonable belief” is a prerequisite condition of the
power of seizure that the law confers on the officer. The belief is subjective & need not be disclosed. It is
also not subject to any judicial review. The court cannot examine whether this belief is reasonable or not.
The court at the most can consider whether sufficient factors exist to warrant a reasonable belief.
‘Any goods’- what they include. – The words ‘any goods’ used in sec. 110 would obviously include both
dutiable goods and goods as defined in Sec. 2(22). Therefore, any conveyance or animals, used as a
means of transport in smuggling of goods or in the carriage of any smuggled goods, shall be liable to
confiscation under sec. 110(2) unless the owner of the conveyance shows that it was so used without his
knowledge or connivance- Tarlok Singh v Supdt. Of Customs 1978 ELT (Delhi): (1979)15 DLT 183.
n
r.i
Seizure of Documents
Sub-sec. (3) of sec. 110 empowers the proper officer to seize the documents, which in his opinion will be
e
useful for or relevant to any proceeding under the Act. It is, therefore, obvious that sub-sec. (3) gives an
nc
independent power in the matter of seizure of documents and the said power is not subservient to the
power exercisable by the proper officer under sub-sec. (1) of sec. 110. Since the purpose of the two sub-
re
sections is different, the documents or things can be seized under sub-sec. (3) of sec. 110 even in those
cases where there may be no seizure of goods on the ground that the goods are liable to confiscation. In
fe
other words, the seizure of goods on the ground that the proper officer has reason to believe that such of
.re
sub-sec. (1) of sec. 110 cannot be read as a condition precedent to the exercise of power of seizure of
documents under sub-sec. (3) of sec. 110 of the Customs Act .
w
w
Document includes “any matter written, expressed or described upon any substance by means of letters,
figures or marks, or by more than one of those means which is intended to be used, or which may be
w
used, for the purpose of recording that matter”. [Section 3(18) General Clauses Act]. This definition has to
be applied to the Customs Act which does not define ‘document’.-
British Physical Labs. v. Asstt. Commissioner, DRI – 1983 (14) E.L.T. 2270(Kar.)
Passport – whether document.

Passport is a prima facie evidence of nationality, a document of identity and essential for exit /
entry into countries. It has become a condition of free travel. – Satwant Singh v. Ramarathnam - AIR
1967 SC 1836.
The Criminal Court has the power to withhold or impound the passport of any person, more so of
a foreigner, accused of a grave offence. – Assistant Commissioner v. Abdul Samathu – 1985 (22) E.L.T.
761 (Mad.).
Passport may be seized under FERA (on summons issued under Section 40 and in exercise of
the powers under Section 38). It can be said to be both a document and a thing (vide Section 38), or at a
least a thing which is capable of being perceived. – Abdul Kadir Md. Jhaveri v. U.O.I. – (1987) 14 ECC 81
(Guj.).
www.referencer.in
69
Passport is a document liable to seizure under sec. 110(3) – Devadasan Dayalal v Commissioner
of Customs (1986) 26 ELT 728 (Ker) referred with approval in P. O. Thomas v Union of India 1990 Cr. LJ
1028 (Ker) (DB);
SECTION 110 (1A) OF THE CUSTOMS ACT, 1962

Section 110 (1)(A) of the Customs Act, 1962, stipulates that the Central Government may, having
regard to the perishable or hazardous nature of any goods, depreciation in the value of the goods with the
passage of time, constraints of storage space for the goods or any other relevant consideration, by
notification in the Official Gazette, specify the goods or class of goods which shall, as soon as may be
after its seizure under sub-sec. (1) be disposed of by the proper officer in such manner as the Central
Government may from time to time, determine after following the procedure hereinafter specified.
Notification issued in this regard has been reproduced below:
In exercise of the powers conferred by sub-section (1A) of section 110 of the Customs Act, 1962
(52 of 1962), the Central Government, having regard to the perishable nature, depreciation in the value
with the passage of time, constraints of storage space and valuable nature, of the goods, mentioned in
the Schedule hereto annexed, hereby specifies the said goods for the purposes of that sub-section.
n
r.i
The Schedule
1. Liquors;
1A. Photographic Films;
e
nc
1B. Patent or Proprietary medicine, i.e., any drug or medicinal preparation, in whatever form,
for use in the internal or external treatment of, or for the prevention of ailments in human
re
beings or animals, which bears either on itself or on its container or both, a name which is
not specified in a monograph, in a Pharmacopoeia or Formulary;
fe
2. Primary cells and primary batteries including re-chargeable batteries;

.re
3. Wrist watches including electronic wrist watches; watch movements, parts or components
thereof;
3A. Zip fasteners;
w
4. All electronic goods including television sets, Video Cassette Recorders, Tape recorders,
w
calculators, computers; components and spares thereof including diodes, transistors,

w
integrated circuits, etc;

4A. Gold in all forms including bullion, ingot, coin, ornaments crude jewellery.
4B. Silver in all forms including bullion, ingot, coin, ornament, crude jewellery.
5. Dangerous drugs and psychotropic substances.
6. Conveyance;
7. Man-made yarn and fabric; and
8. Currency, Indian & Foreign;
9. Bulk drugs and chemicals falling under Section VI of the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975).
10. Diamonds, precious and semi-precious stones.
11. Ball Bearings.
12. Cellular Phones.
[ Notification No. 31/86-Cus. Dt. 5.2.1986, as amended by No. 42/89-Cus.(NT), dt.30.6.1989, No.
7/93-Cus.(NT), dt.25.1.1993, No. 10/95-cus. (NT), dt.1.3.1995, No. 12/96-Cus. (NT), dt.11.3.1996,No.
72/97-Cus.(NT), dt.22.12.1997 and No. 90/98-Cus.(NT), dt.12.11.1998 ]
www.referencer.in
70
SECTION 110 (2) OF THE CUSTOMS ACT, 1962

Sub-sec. (1) of sec. 110 authorizes seizure, the only requirement being reasonable belief on the
part of the concerned officer at the time of seizure. The powers of seizure founded on a mere reasonable
belief being obviously an extraordinary power, the second sub-section envisages completion of the
enquiry within a period of six months from the date of seizure. But it provides that if such an enquiry is not
completed within that period and a notice under Sec. 124(a) is, therefore not given, the person from
whom the goods are seized becomes entitled to their restoration. However, on the supposition that in
some cases such an investigation may not be completed owing to some difficulties, the legislature gave
under the proviso power to the Commissioner, an officer superior in rank, to extend the time on two
conditions, namely, (1) it does not exceed one year, and (2) on sufficient cause being shown. The policy
of the legislature, therefore, clearly was that in view of the extraordinary power of seizure, the enquiry
should ordinarily be completed within six months but since it might not be possible to do so in some
cases, it gave power of extension to the Commissioner. The legislature was thus careful to entrust the
power of extension would have to be asked for and granted are thus envisaged as exceptions to the
general rule of six months laid down in sub-sec. (2). The second limitation to the power is that such as
extension can be granted only on sufficient cause being shown, a phrase often used for condonation of
n
delay, such as, sec. 5 of the Limitation Act, 1908.
e r.i
There can be no doubt that the proviso of second sub-section of sec. 110 contemplates some
sort of enquiry. The Commissioner, obviously, is expected not to pass extension orders mechanically or
nc
as a matter of routine, but only on being satisfied that there exists facts which indicate that the
investigation could not be completed for bona fide reasons within the time laid down in sec.110 (2) and
re
that, therefore, extension of that period has become necessary. He cannot therefore, extend the time
unless he is satisfied on facts placed before him that there is sufficient cause necessitating extension.
fe
The burden of proof in such an enquiry is clearly on the Customs officer applying for extension and not on
.re
the person from whom the goods are seized. The question, therefore, is as to the nature of such a
function and power entrusted to and conferred on the Commissioner by the proviso. It will be noticed that
whereas sub-sec. (1) of sec. 110 uses the expression ‘reason to believe’ for enabling a Customs officer to
w
seize goods the proviso to sub-sec. (2) uses the expression ‘sufficient cause being shown’. It would seem
w
that sub-sec. (1) does not contemplate an enquiry at the stage of seizure, the only requirement being the
w
satisfaction of the concerned officer that there are reasons their illegal importation. Even so, such
satisfaction, is not absolutely subjective in as much as the reasons for his belief have to be relevant and
not extraneous. It is clear that the legislature was not prepared to use the same language while giving
power to the Commissioner to extend time and deliberately used the expression ‘sufficient cause being
shown’. The words ‘sufficient cause being shown’ must mean that the Commissioner must determine on
materials placed before him that they warrant extension of time. Where an order is made in bona fide
exercise of power and reading the provisions of the Act which confers such power, the order undoubtedly
is immune from interference by a court of law, and, therefore, the adequacy of the cause shown may not
be ground for such interference. But there can be no doubt at the same time that the enquiry to be held
by the Commissioner has to be on facts, i.e. materials placed before him. There is, therefore, no question
in such cases of the subjective satisfaction of the Commissioner for, what he is asked to do by the proviso
is to determine that the cause shown before him warrants an extension of time.
The right to restoration of the seized goods is a civil right which accrues on the expiry of the initial
six months and which is defeated on an extension being granted, even though such extension is possible
within a year from the date of the seizure.
www.referencer.in
71
An ex parte determination by the Commissioner would expose his decision to be one-sided and
perhaps one based on an incorrect statement of facts.
Notice under section 124(a) of the Customs Act and service thereof. – Sub-sec. (2) of sec. 110
requires notice under sec. 124(a) to be ‘given’ to the person from whose possession the goods were
seized within six months of the seizure of the goods. This is a mandatory provision in the sense that
failure to do so entitles the person from whose possession the goods were seized to get return of the
same. Incidentally, Sec. 124 of the Act provides that no order confiscating any goods or imposing any
penalty under the Chapter (Chapter XIV) shall be made on any person unless the owner of the goods or
such person –
(a) is given a notice in writing;
(b) is given an opportunity to make a representation in writing.
Interestingly, sec. 124(a) does not provide any time limit for issuing such show-cause notice. The
object of service of such notice is also different so far as sec. 124 is concerned, through in view of sec.
110(2), the goods seized should be returned for non-service of such notice within the specified time
frame. It does not, however, denude the adjudicating authority of the power to initiate proceedings even
n
thereafter.
r.i
As to the service of notice, sec. 153 of the Act provides that it may be effected –
(a) by tendering it or sending it by registered post; or
e
(b) affixing it on the notice board of the customs house, if it cannot be served in the manner
nc
provided in clause (a).
re
Service of order, decision, etc. – Any order or decision passed or any summons or notice issued under
this Act, shall be served-
fe
(a) by tendering the order, decision, summons or notice or sending it by registered post to the
.re
person for whom it is intended or to his agent; or

(b) if the order, decision, summons or notice cannot be served in the manner provided in clause
(a), by affixing it on the notice board of the customs house.
w
w
Period of limitation under section 110(2) – whether affects proceedings under section 124. – Sec.
w
124(a) makes service of notice upon the concerned person or the owner of the goods, a pre-condition to
confiscation of goods or imposition of penalty. Incidentally, the section does not provide any time limit for
issuing such show-cause notice, through sec. 110(2) does. Now, sec. 110 relates to seizure of goods,
which the proper officer has reason to believe, are liable to confiscation. Service of notice in respect of
such seized goods under sec. 124(a) is necessary in order to enable the concerned person to show
cause why such seized goods shall not be confiscated or why personal penalty should not be imposed on
him. Sub-sec. (2) of sec. 110, in this connection, provides that where any goods are seized under clause
(a) of sec. 124 within six months of the seizure of the goods, the goods shall be returned to the person
from whose possession they were seized. Thus, so far, as sec. 110 is concerned, non-service of notice
under sec. 124(a) within the prescribed period, renders such goods returnable. The legislative object
behind this provision is obviously, not to allow the Customs authorities to keep the goods under seizure
for indefinite time without a proper enquiry being held as to whether such goods are actually liable to
confiscation. So, in relation to sec. 110, non-service of notice within the prescribed period affects merely
the validity of the seizure. It does not affect the confiscation and penalty proceedings as contemplated by
sec. 124. Because though the goods seized on a reasonable belief that they are liable to confiscation,
proceedings may still be held and / or continued.
www.referencer.in
72
Time - limit of six months – whether applicable to seizure under section 110(3).
Sec. 110(1) of the Act deals with seizure of goods; sub-sec. (2) stipulates the condition when the
seized goods are to be returned and sub-secs. (3) and (4) deal with the documents seized. The
Legislature in its wisdom thought it proper to lay down condition and time for return of seized goods, but
has not done so in case of seized documents. In view of this it cannot be urged that along with the seized
goods, seized documents should also be returned. It is, however, expected that the seized documents
would be retained so long they are required for investigation etc & should not held indefinitely.
CONFISCATION OF GOODS
Section 126 of the Customs Act, 1962, which deals with the confiscation of goods is reproduced
below:
On confiscation, property to vest in Central Government. - (1) When any goods are
confiscated under this Act, such goods shall thereupon vest in the Central Government.
(2) The officer adjudging confiscation shall take and hold possession of the confiscated goods.
n
Confiscated goods are vests in Central Government. – Section 126 of the Customs Act specifically
r.i
provides that when any goods are confiscated under the Act such goods shall thereupon vest in the
Central Government. It is also evident from the provisions of Sec. 141 of the said Act, that goods in the
e
customs area shall be subject to the control of the officers of customs, undoubtedly, the imported goods
nc
were unloaded from the ship in the customs area. So these were under the control of the officers of
Customs. Moreover, after confiscation of the entire consignment of imported goods, the same vested in
re
the Central Government in accordance with the provisions of Sec.126 of the said Act.
fe
A direction should be given to the Customs Authorities to start an adjudication proceeding for
.re
which they will make an enquiry on the documents and materials to be produced by the parties and
thereafter shall come to a conclusion as to whether the writ petitioner is entitled to release of the goods in
question. At the time of such hearing it will be upon to the Customs Authorities to decide as to whether in
w
view of the order of the Commissioner of Customs confiscating the goods and liberty given to the importer
w
to get the goods released on redemption in lieu of confiscation, the consigned goods which have been
w
confiscated by the said order are to be held as properties of the Central Government on confiscation in
terms of Sec.126 of the Customs Act.
In the instant case, the submission of Counsel for the petitioners is that pending the adjudication,
the respondents be directed to sell the seized goods by public auction, as they are perishable in nature.
These goods had been seized under Sec. 110 of the Customs Act, 1962, which is permissible under the
provisions of the Excise Act. Section 126 of the Customs Act states that where any goods are confiscated
under that Act, then such goods shall thereupon vest in the Central Government. This being so, no
direction could be given to the respondents to sell the seized goods y public auction as prayed by the
petitioners. The petitioners have also failed to substantiate that the seized goods are perishable in nature.
The writ petition is, therefore, disposed of finally directing the respondents to conclude the adjudication
expeditiously.
Provisions of Sec. 126 are applicable when goods are absolutely confiscated.– Condition of fixing
time limit while extending the option for redemption of goods is not in exercise of any statutory powers
given under the provisions of the Act, but is as an ancillary and the same has to be exercise rationally and
www.referencer.in
73
always carry with them an additional discretion to grant extension thereunder. As regards the provisions
of Sec. 126 are concerned, the same only provided that where any goods are confiscated under the said
Act, such goods shall thereupon vest n the Central Government. The confiscation in the instant case is
not an absolute confiscation. The same with condition extending option to the appellant, to redeem the
same. In case of exercise of option by the appellant, the vesting of such confiscated goods in the Central
Government does not arise at all. The provisions of Sec. 126 are applicable in cases where the goods are
either ordered to be absolutely confiscated or where the persons to whom the option have been given for
redemption of the goods do not exercise such an option. The appellant having deposited the money also
the provisions of Sec. 126 cannot be said to have any effect.
Certain officers required to assist officers of customs. - The following officers are hereby
empowered and required to assist officers of Customs in the execution of this Act, namely, -
(a) officers of the Central Excise Department;
(b) officers or the Navy;
(c) officers of Police;
(d) officers of the Central or State Governments employed at any port or airport;
n
(e) such other officers of the Central or State Government or a local authority as are specified by
r.i
the Central Government in this behalf by notification in the Official Gazette.
e
1. Officers of the Enforcement Directorate – powers.- Sec. 151 of the Customs Act empowers
nc
the officers mentioned in the section to assist officers of customs in the execution of this Act. Officers of
the Enforcement Directorate have no power to seize articles from persons. They can merely assist the
re
officers of the customs in the execution of the Act – Vasantlal Ranchchoddas v Union of India AIR 1967
Bom 138.
fe
2. Police officers – powers.- Sec. 151 does not empower police officers to exercise the powers
.re
of customs officers under the Customs Act, 1962. They can simply assist the customs officers. Where
gold is seized by police officers and subsequently transferred to the customs authorities, the seizure
could not be said to have been effected under the Customs Act by invoking sec. 151 – 1970 All LJ 390.
w
w
PANCHNAMA (SEARCH LIST) DRAWING OF –

w
(i) The Search list, as far a practicable must be prepared in the premises from which the goods were
recovered. In a case where more than one room is searched in a building the search list can be prepared
in any; one of the rooms from which the goods are recovered. When goods liable for confiscation are
found in different rooms they must be shown to the search witnesses in the rooms where they are found
before they are removed to another room. It is to be borne in mind that immediately on detection, .the
goods should be allowed to remain in its original place until the search witnesses have seen them.
(ii) In a case where goods are recovered from the person of a carrier as a result of personal search,
the search list may either be drawn in the premises where the person is searched or if it is not practicable
at the spot as near to the search premises as possible.
(iii) Great care should be exercised in selecting exhibits, which have a bearing on the mode of
concealment etc. The officers should invariably take possession of the packages, boxes, bags, writing
papers, containers in which the goods were concealed etc.
(iv) While seizing the documents, the following procedure should be adopted :
(a) All loose documents should be signed by the witnesses.
www.referencer.in
74
(b) Each page of all exercise books registers etc. must be numbered and the pages containing
writing must be signed by the witnesses. The number of written pages and the pages should
be separately indicated in the documents.
(c) The first and last document in the register, the exercise books etc. must be signed by the
witnesses.
(d) The seizing officer will also cause all seized goods to be property sealed with the Customs
seal as well as the seal of the accused (if any) if he so desires.
(v) As required under Section 103(2) of the Criminal Procedure Code a list of all things seized in the
course of the search and of the places in which they are respectively found shall be prepared by the
officer executing the search warrant and be signed by the two witnesses. As far as possible, a full
inventory should be prepared before the seizure. Where for any reason this is not possible, with the
owner’s consent, the goods may be seized in packages, bundles, boxes etc. and the containers sealed
carefully with the owners seal and the seal of the supervising Customs Officer. A memo should be served
on the spot directing the owner to attend the Custom House on the specified day and time for the
preparation of the detailed inventory, examination and valuation of his goods. If in-spite of this momo, the
owner fails to attend the Custom House within the specified time-limit for examination of the goods etc.
n
the goods may be examined in his absence before two independent witnesses.
e r.i
SEIZURE OF VEHICLES, MACHINERY GOODS – INVENTORY OF ACCESSORIES TO BE TAKEN
Whenever vehicles, cars or machinery goods are seized by Customs Officers, they should record
nc
not only all the specifications and descriptions of the articles but also clearly record the presence or
absence of the accessories and tools such as stepney, battery, horn, condition of cushion, winding
re
handles etc. for this purpose if the vehicle seized is in a very poor condition the services of a professional
surveyor may be availed of, if necessary. All the Preventive Officers should, therefore, note that if any
fe
doubt arises at a later stage regarding the exact condition of such seized articles owing to acts of
.re
omission on the part of the seizing officers, the Senior Officer making the panchanama will be held
responsible on the matter.
[ Board’s letter F. No. 20/21/60-Ad. V dated 7.2.1962 ]
w
w
w
Streamlining of procedure for seizure of goods and preparation of Panchnama-guidelines

The Central Vigilance Commission, in one of its annual report has observed that the procedures
for seizure of goods, and preparation of “Panchnama” needed to be streamlined, as in a number of cases,
several deficiencies were allowed to remain in these areas, due to which, the vigilance cases initiated
against particular officers could not succeed at enquiry stage eventually. The officers stressed on certain
omissions / deficiencies to counter department’s relied upon evidence and this could not be ignored by
the Enquiry officer. It has also come to Board’s notice that as the laid down guidelines are not followed
strictly, unnecessary complaints are received e.g. searches by unauthorized persons or seizures not
recording all the goods recovered or copies of seizure memos / Panchnamas not being given.
Deficiencies in Panchnama is often also exploited by the unscrupulous parties involved in smuggling / tax
evasion and they escape penalty / punishment otherwise due, by establishing that the Panchnama did not
reflect the facts properly & therefore could not be relied upon.
2. The Board would like you to ensure that officers under your charge, engaged in enforcement /
preventive functions, scrupulously adhere to the laid down guidelines while undertaking any searches of
any premise, place or person(s) or effecting seizure of any goods in such searches specially valuables
www.referencer.in
75
like currency, watches, precious and semi precious stones, gold / silver (including jewellery), sensitive
goods like narcotics, arms and ammunition or other contraband goods of considerable value etc. Though
a large number of instructions already exist on the procedure to be followed (some of which are given in
the Department’s Preventive Manual), some of the important points mentioned below are reiteration for
guidance of field officers:-
(a) The search of the premises / persons should be conducted, invariably, by persons with due
authorisation / authorities, in the presence of two independent and respectable Panch
witnesses of the locality and the occupants of the place or their representative(s). The leader
of the party conducting search must show / read out the search authorisation to the Panch
witnesses as well as he occupants of the premises or their representative(s) and must obtain
their signatures on the search authorisation, in token of the same having been seen by them:
(b) All the members of the search party, before starting search, must offer themselves for being
searched by the witnesses and / or the occupants of the premises and / or their
representative(s), and this fact must be clearly incorporated in the Panchnama. Great care
must be taken in recording in the Panchnama, all relevant & precise details of the
n
incriminating goods including valuables, currency notes or documents recovered and seized
r.i
during the search. The denominations of currency & total amount, details of valuables or
other contraband goods (with identification marks, wherever possible), both in quantities and
e
value term and the manner of packing / sealing of the goods seized, should be clearly
nc
mentioned in the Panchnama, to avoid any controversy of the actual contents / value in
different seized packages, at a late date;
re
(c) Detailed inventory of all contraband goods on Customs side or clandestinely manufactured /
unaccounted exciseable goods etc. on central Excise side proposed to be seized under the
fe
reasonable belief that these are liable to confiscation under the provisions of Customs Act,
.re
1962 / Central Excise Act, 1944 should be prepared & got duly authenticated by the Panchas
as well as representative(s) of the person(s) whose premises are searched;
(d) The description of places / packages etc., from where these goods / currency / valuables etc,
w
were recovered & if concealed, the manner of concealment etc., in cases of sensitive goods
w
and even other goods seized – should be clearly mentioned, (unless it becomes impractical
w
to undertake a detailed inventory of contents of each packages) and each package should be
got sealed and labelled, presence of Panchas and the owner / person incharge, form whose
premises these goods are recovered and labels got duly signed;
(e) The detailed inventory, as stated above, and copies of Panchnama, on each page, must be
got signed by the Panchas and the owner / person incharge of the premises, who have
witnessed the search / seizure & a copy of the Panchnama shall be handed over to him;
(f) It should be clearly mentioned in the Panchnama that except for the documents / goods
seized under Panchnama, nothing else was seized and / or taken in possession;
(g) The time and date of starting the search as well as the time and date of concluding the
search, should be clearly mentioned in the Panchnama and a facsimile of the seal used
during the search should also be embossed on the Panchnama;
(h) Any untoward incidence occurred during search should be clearly mentioned in the
Panchnama. If search was conducted smoothly, this fact should be mentioned in the
Panchnama;
www.referencer.in
76
(i) On completion of the search, all members of the search party, must again offer themselves
for being searched by the witnesses and / or the occupants of the premises, and / or their
representative(s) and this fact should also be incorporated in the Panchnama;
(j) On completion of the Panchnama, it must be read over to all concerned, in vernacular, and
signatures of Panch witnesses as well as occupants of the premises / their representative(s)
should be obtained on the Panchnama;
(k) A copy of the Panchnama should be handed over to the occupants of the premises or their
representative(s), under proper acknowledgement.
[ Ministry’s letter No. 394/226/98-Cus (AS) dt.30.8.1999 ]
n
e r.i
nc
@@@@@@@@@@
re
fe
.re
w
w
w
www.referencer.in
CHAPTER - SEVEN
INVESTIGATION
PRELIMINARY
Investigation constitutes one of the most important functions of the Intelligence branch.
Establishing an offence depends entirely on efficient investigations. The nature of the investigations
varies from case to case. However, in so far as, Customs cases are concerned, basically investigation
will mean the efforts to locate the source of the offending goods, the brains behind the entire smuggling
operations, the operators, funds, etc. The investigating officer is required to keep his knowledge update
about all the relevant laws, rules / regulations so as to come to a proper logical conclusion about the case
entrusted to him for investigation.
One of the important tools of investigation is interrogation, which is widely used in Customs
cases. The main reason being that the statements recorded by Customs Officer are not hit by Sec. 25 of
the Evidence Act.
In the Customs department, interrogation is very often treated as a casual recording of a
n
statement in relation to a particular incident. Interrogation is entrusted to any one who is available without
e r.i
consideration whether the officer has the necessary background and ability to interrogate the person.
Interrogation is an art, or perhaps even a science. The interrogator will have to approach his subject, i.e.,
nc
the person under interrogation in the proper way so that he can elicit as much information as possible
from a subject. The ability to conduct a good interrogation is closely related to the experience that the
re
interrogating officer has. His personality counts a lot.

An interrogation cannot start in vacuum. The interrogator must prepare the outlines of his
fe
approach and his questions before actually commencing the interrogation. Preparation would include the
acquisition of a thorough knowledge of the background data regarding the subject and complete details
.re
regarding the particular incident, which had resulted in the person being brought for interrogation. At the
same time the officer should be capable of switching his approach depending upon the developments
w
during the course of interrogation.

At the outset, every officer should inform the subject about the provisions of the Customs Act,
w
particularly regarding the need for the subject to be truthful in his statement. The provisions of Section
w
108 of the Customs Act should be explained in a language, which the subject understands. The particular
way in which an interrogation is commenced would naturally depend upon not only the personality of the
subject but also the extent of his involvement.
STATEMENT UNDER THE CUSTOMS ACT

Recording of the interrogation is known as ‘statement’. Section 107 of the Customs Act, 1962
stipulates that:
“Any officer of Customs empowered in this behalf by general or special order of the
Commissioner of Customs may, during the course of any enquiry in connection with the
smuggling of any goods –
(a) require any person to produce or deliver any document or thing relevant to the enquiry;
(b) examine any person acquainted with the facts and circumstances of the case.
Section 107 refers to an enquiry by a Custom Officer. Such enquiry does not have the attributes
of judicial proceedings unlike the enquiry under Section 108. It also does not enable the enquiry officer to
compel the attendance of witnesses or production of documents or things, and the witness also cannot be
www.referencer.in
78
compelled to speak the truth under penalty. What Section 107 contemplates, is therefore, a less formal
and rigorous type of enquiry by Customs officer; whereas Section 108 contemplates an enquiry which is
considered to be a legal proceedings. But neither the enquiry under Section 107 nor the enquiry under
Section 108 can in any way, in substance or in law, be considered to be the same as an investigation into
a Criminal offence, by an officer in-charge of a Police Station under Chapter XIV of the Code of Criminal
Procedure.
Section 107 of the Act does not empower any and every Gazetted Officer of the Customs
Department to record statements during the inquiry under the Section. It specifically says that only an
officer of the Customs empowered in that behalf by general or special order of the Collection of Customs
can record statements under the Section.
Under Section 5(2) of the Customs Act, 1962 vide Office Order No. 5 dtd. 1.2.1963 issued by
Commissioner of Customs, Bombay, from the file C1086/63, all officers except Clerks and Class IV
officers, of the Preventive Department are the officers empowered to record the statement under Section
107 of the Customs Act, 1962.
POWER TO SUMMON PERSON TO GIVE EVIDENCE AND PRODUCE DOCUMENTS
n
Sec. 108 of the Customs Act 1962 stipulates that –
r.i
(1) Any gazetted officer of Customs shall have power to summon any person whose attendance he
considers necessary either to give evidence or to produce a document or any other thing in any
e
inquiry which such officer is making in connection with the smuggling of any goods.
nc
(2) A summons to produce documents or other things may be for the production of certain specified
documents or things or for the production of all documents or things of a certain description in the
re
possession or under the control of the person summoned.

(3) All persons so summoned shall be bound to attend either in person or by an authorised agent, as
fe
such officer may direct; and all persons so summoned shall be bound to state the truth upon any
.re
subject respecting which they are examined or make statements and produce such documents
and other things as may be required.
Provided that the exemption under Sec. 132 of the Code of Civil Procedure, 1908 (5 of
w
1908) shall be applicable to any requisition for attendance under this section.
w
(4) Every such inquiry as aforesaid shall be deemed to be judicial proceedings within the meaning of
w
Sec. 193 and Sec. 228 of the Indian Penal Code (45 of 1860).
DOCUMENTS :
Customs Act does not define `Document.’ Section 3(18) of General Clauses Act define
`Document’ as under -
“ Document includes, “ any matter written, expressed or described upon any substance by
means of letters, figures or marks, or by more than one of those means which is intended to be used, or
which may be used, for the purpose of recording the matter.”
This definition has to be applied to Customs Act, 1962.
SMUGGLING:
In this context, the expression `smuggling’ has been defined in Sec. 2(39) of the Act to mean any
act or omission which will render such goods liable for confiscation under Sec. 111 or Sec. 113. The
same definition has been adopted in COFEPOSA Act. Even the general concept of the smuggling has
two elements; one, the bringing into India of goods the import of which is prohibited; and two, the bringing
into country’s stream of goods the import of which is permitted, without paying the Customs duty which
www.referencer.in
79
they are chargeable. The second eventuality can occur not only where there is a Clandestine import
evading the assessment of duty, but also where there is a clandestine removal without payment of duty
Under Sec. 108 of the Customs Act, 1962, a Customs Officer is given the power to interrogate
any person in connection with the smuggling of any goods which is officers’ duty to prevent. Such a
person may have nothing to do with the smuggling although he may know the whereabouts of the goods
and persons. Sub-sec. (3) of sec. 108 does not compel any person to make a statement, but if he makes
a statement he has to state the truth in order to avoid punishment under Sec. 193, IPC. At that stage
nothing may be known as to whether an offence has been committed or who has committed it and the
person interrogated at that stage certainly is not a person accused of or charged with an offence. He is
merely called upon to give evidence to facilitate the inquiry. He is not a witness giving evidence in a court
and his testimony will make him liable under Sec. 193., IPC, because of the express provision of law in
sub-sec (4) of [Sub-sec. (4) of sec. 108 of the Customs Act, 1962.)
SUMMONS -
Under Section 108 of the Customs Act, 1962, Section 14 of Central Excise & Salt Act, 1944,
Summons, as understood in the legal parlance, is an intimation requiring the person to whom it is issued
n
to appear to give evidence and/or to produce some documents. It is not an order in the sense that it
r.i
decides any question or communicates a decision taken.
e
PROFORMA OF SUMMONS UNDER SECTION 108 OF THE CUSTOMS ACT, 1962.
nc
OFFICE OF THE COMMISSIONER OF CUSTOMS, ……………….
(Name and address of the section)
re
……………………………………………….
SUMMONS UNDER SECTION 108 OF THE CUSTOMS ACT, 1962
fe
Summons No. …………. File No. …………………….

.re
WHEREAS, I, …………….. , ……………….. of Customs, ……………… duly employed in the

prevention of smuggling, consider the attendance of Shri ………………….. necessary for giving evidence
and / or producing relevant documents in respect of an enquiry being made by me in connection with the
w
alleged smuggling / seizure of ……………. on ……….

w
WHEREAS, I am satisfied that the relevant documents are in your possession or under your
w
control. Now, therefore, in exercise of the powers conferred on me under Section 108 of Customs Act,
1962, I hereby summon you to appear before me in person to give evidence and / or produce the below
mentioned documents at …….(place) ……… on the ……….. day of ….( year ) at …….. hours.
You are not to leave the above-mentioned Customs Office without leave and - if the case is
adjourned – without ascertaining the date of adjournment.
Non compliance with these summons is an offence under Sections 174 and 175 of the Indian
Penal Code, 1880.
You are warned that giving false evidence in these enquiry proceedings is an offence punishable
under Section 193 of the Indian Penal Code.
ISSUED TODAY, THE ……….. DAY OF ……….. ,( year )
Documents required:
……………… OF CUSTOMS
…..( Name & address of Office )……
( Seal of Office )
www.referencer.in
80
ADMISSIBILITY OF A CONFESSIONAL STATEMENT MADE UNDER THE CUSTOMS ACT

As to the admissibility of a confession made by a person summoned for an enquiry under Section
107 of the Customs Act, 1962, it can be seen that such a person is not an accused person and the officer
summoning that person is not a Police officer. Any confession made by such person is admissible in law
since it is not hit either by Section 25 or Section 26 of the Evidence Act. However, if it is shown in a given
case that such a confession was obtained by the Customs officer by exertion of inducement, threat,
coercion or duress, or extracted by illegally detaining the person in an unauthorised prolonged custody, or
obtained by using third degree methods, then the question about the acceptability and reliability of such
involuntary confession would arise.
CONFESSIONAL STATEMENT – when admissible :

It is a fundamental basic principle of criminal jurisprudence that caution must be administered to a
person from whom a confessional statement is recorded that the same could be used against him in a
judicial proceeding. Section 164 Cr. P.C. uses and refers to the expressions, “Confessions and
Statements”. In other words, the distinction between statements and confessions was kept in mind while
enacting Section 164 Cr.P.C. It is well settled that all confessions are statements, but all statements are
n
not confessions. Section 108 of the Customs Act authorising the empowered authority o record what the
r.i
person summoned, states. A plain reading of Section 108 of the Customs Act, makes it clear that it does
not enable the empowered authority to record a confessional statement from a person summoned
e
thereunder. In the absence of any such power conferred under Section 108 of the Customs Act, the
nc
empowered authority can only fall back upon Section 164 Cr.P.C. to record a statement of confessional
nature from the person summoned. As already stated, Section 164(2) Cr.P.C. enacts that the Magistrate
re
while recording a confessional statement, must administer the warning or caution to the person making
the confessional statement, that the same would be used against him. The same caution or warning, it
fe
follows, must also be administered to the person summoned, under Section 108 of the Customs Act by
.re
the empowering authority. Non-compliance with the mandatory provisions contained in Section 164(2)
Cr.P.C. is not curable under Section 463 Cr.P.C. and renders the statement so recorded inadmissible in
evidence. It, therefore, follows that unless the empowered authority under Section 108 of the customs Act
w
administers the caution or the warning embodied under Section 164(2) Cr.P.C. before recording a
w
statement of confessional nature, from the person summoned, the statement so recorded will be
w
inadmissible in evidence for any purpose. In other words, the impugned statements recorded by the
empowered authority under Section 108 of the Customs Act are inadmissible in evidence and liable to the
eschewed from consideration for any purpose, as no caution or warning embodied under Section 164(2)
Cr.P.C. was administered to the person from whom the said statements were recorded.
INTERROGATION OF SUSPECTS :
Whilst the following suggestions will apply to the majority of interrogations, they obviously have to
be varied with particular circumstances and suspect. Perhaps, to assist in this performance, suspects
could be divided into the following three categories:
a) Suspects who will confess readily;
b) Suspects who will confess their part in crimes, only after lengthy and skilful interrogation;
c) Suspects who decline to answer questions.
One of the most consistent weaknesses in the interrogation of suspects who readily confess is
that interrogators are apt to shorten the interrogation and not all essential questions are not put to cover
every aspect of guilt. Additionally, they frequently overlook the fact that although the suspect did confess
quite early in the interrogation, he almost invariably made certain denials at the start.
www.referencer.in
81
Before asking any specific questions about a particular crime, remember that the suspect may
have committed other offences and that a vague question may lead him to confess a number of other
offences. Very often, he himself will open the conversation by asking “Just what am I, supposed to have
done this time?” Instead of mentioning the crime under enquiry a reply “you know very well why you are
here, what about telling us the truth?” Can often lead to the clearing up of other crimes. This is particularly
how this unintelligent suspects and juveniles who will very often admit crimes of which the interrogating
officers were not even aware.
The following are rules that should be considered in all interrogations:
(1) Open the interrogation as friendly and firmly as the circumstance may permit.
(2) Attempt to develop in the suspect’s mind impression that you are in possession of substantial
evidence to establish his guilt.
(3) The suspect will be attempting, early in the interrogation, to decide how much evidence you have
against him and whether or not you are bluffing on certain aspects.
(4) Sympathetic enquiries as to whether or not he is able to obtain bail, how his family may fare in his
absence, whether they can obtain social services, accommodation, etc., whilst he is in jail, are
undoubtedly the most convincing matters which can be put to develop in him the certainty that
n
you have solid evidence against him.
r.i
(5) Not only do these questions conform to your planning, but they are also enquiries which will, in
most cases, convey to the suspect that you have a sympathetic and genuine interest in his
welfare and the future of his family.
e
nc
(6) Be careful not to exaggerate the seriousness of his offence. If possible, take the opposite stand
and look for factors, which will reduce the offensiveness of his crime and make confession easier
re
for him.
(7) In difficult cases, direct your questions to establish suspect’s presence at the crime scene. This is
fe
vital and, having placed him at the scene, you may then question him about his complicity in the
.re
crime itself.
(8) Avoid complicated or double questions.
(9) Once the interrogation is well under way, keep a constant stream of questions directed to the
w
suspect. Keep talking so that he is forced to think and answer questions fairly quickly.
w
(10) Do everything possible to keep pressing on him so that he will go on answering your questions.
w
The more he talks, the more he will lie or the more he will say things, which will establish his
innocence or guilt.
(11) Where he has not answered a question, repeat the question or state quite firmly “Come on now,
what do you say about that?”
(12) Avoid, at all costs, long periods of silence, suspects under pressure are often on the verge of
confessing but if allowed time to reconsider will frequently change their minds.
(13) Remember at all times that whilst he is talking about the crime, he is building up a word picture
you can visualize. It may be true or false but in most cases it will be part truth and part falsity.
(14) Where he is answering questions it is generally best to follow this order:
(a) a broad question first;
(b) then a narrower one; and
(c) a very specific question to remove any ambiguity.
(15) Do not be too quick to tell the suspect you know he is lying. Allow him to commit himself to a false
story at some length, then go back over it and point out some (not all, at this stage) of his lies.
(16) This method makes him wonder just how much you know or more importantly whether there is
anything in fact, you don’t know.
www.referencer.in
82
(17) At this stage, ask him to go over his story again, but tell him this time not to waste your time and
his by telling you lies.
(18) By not pointing out all his lies on the first occasion you have retained an important check on the
next story he begins to tell you.
(19) On the second occasion, stop him quickly and firmly at the first direct lie and let him see you are
displeased with his false story. If the interrogator does this convincingly the suspect will, in most
cases, immediately confess his part in the crime.
(20) With difficult suspects, the interrogator should first question him about minor facts and
surrounding issues; avoid direct questions as to the offence itself.
(21) Having established the presence at the crime-scene and obtained his agreement to these minor
points, gradually work up to the major issue of his part in the crime itself.
(22) Not only have you now developed valuable evidence but you have made it more difficult for him
to deny complicity and perhaps have made it easier for him to confess.
(23) Having in your possession studies of his previous modus operandi you should be in an excellent
position to question him on similarities between the present crime and those committed by him in
the past.
n
(24) Where suspect has been answering questions but now refuses to do so, a stage has been
r.i
reached where it can almost certainly be assumed that he is the guilty person.
(25) If he persists in his refusal to answer, make written notes about his physical reaction at this time.
e
For example: Have his hands started to shake? Are there tears in his eyes? Have his lips
nc
commenced to tremble? Does he generally appear to be agitated or unsettled?
(26) Do not overlook other questions, which can be put to him even though he still declines to answer.
re
fe
HOW TO RECORD A STATEMENT :

.re
As a direct result of interrogation, statements have to be recorded. It is significant to note that the
Customs Act, 1962 does not prescribe any procedure for recording of statements.
The absence of a proper prescribed procedure for recording of statements has resulted in wide
w
variance and disparity in the form and manner in which statements are being obtained. This has also
w
resulted in officers having to face accusations of malpractice, unjustifiable exercise of power,

w
irregularities, illegalities, etc.

As a matter of manifest convenience and usefulness, it is necessary that all officers follow a
uniform manner and format for recording of statements. A systematic and detailed pattern of questioning
and recording the statement is necessary to project a profile of fair functioning. Before recording of a
statement particularly under Sec. 108 of the Customs Act, 1962 it is mandatory to incorporate the
following clauses. The details of which are as under :-
“I am in receipt of your summon no. ………dated…… issued by

…………I have been explained the provisions of Sec. 108 of the
Customs Act, 1962 and have been warned that giving false
evidence in these enquiry proceedings is an offence punishable
under Sec. 193 of the Indian Panel Code. Further, I have also
been warned that my statement can be used against me in this
enquiry proceedings or in any other proceedings which may be
initiated against me.”
www.referencer.in
83
PATTERN OF RECORDING OF A STATEMENT :

(1) The relevant Act and section should be boldly indicated. e.g.
‘Statement recorded under Section 107/108 of the Customs Act, 1962.’
(2) Full name and address of the person giving the statement.
(3) Full name and designation of the officer recording the statement.
(4) If the person giving the statement has been summoned, indicate the reference number
and date of issue of summons. If the summons is oral, it should be so indicated and also
the manner, whether telephonic or through messenger.
(5) Date and time of appearance of the person summoned for giving the statement.
(6) Information about the person.
(a) Full Name and aliases if any.
(b) Address : (I) Business
(II) Residential
(c) Age. Date of Birth
(d) Occupation
(e) Names and addresses of partners, if any
n
(f) Annual income
r.i
(g) Marital status
(h) No of Children
(i) Languages known – read/write/speak
e
nc
(j) Any known medical complaints
Note : The more background details that can be elicited, the better.
re
(7) Why the person is giving the statement.

(8) Factual details of the case as known to the person.
fe
(9) How the above facts are known to the person:

.re
(a) Personal knowledge

(b) Hearsay
(c) Documentary evidence
w
(d) Material evidence

w
(10) If the evidence is hearsay, explanation of the person as to why it is reliable.

w
(11) If other people are sought to be implicated, get:

(a) Full identification
(b) Address
(c) Age
(d) Precise role played
(12) The nature of the violation committed.
(13) Affirmation that all details have been truthfully disclosed and voluntarily given.
(14) Full signature and name to be obtained at the end of each page of statement. Check
genuineness of signature.
(15) Date and time of conclusion of statement.
(16) Full name, signature and designation of officer recording the statement.
AUTHORISED AGENT :
In this regard, the expression àuthorised agent’ ( of the person summoned ) has not been
defined, but Sec. 146 A of the Customs Act defines an àuthorised representative’ as hereunder:
(a) his relative or regular employee; or
www.referencer.in
84
(b) a Custom House Agent licensed under sec. 146; or

(c) any legal practitioner who is entitled to practice in any civil court in India; or
(d) any person who has acquired such qualifications as the Central Government may
specify by rules made in this behalf.
Qualifications for authorised representatives. – For the purposes of section 146A, an authorised
representative shall include a person who has acquired any of the following qualifications, being the
qualifications specified under clause (d) of sub-section (2) of the said section 146 A, namely: -
(a) a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of
1949); or
(b) a Cost Accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of
1959); or
(c) a Company Secretary within the meaning of the Company Secretaries Act, 1980 (56 of
1980); who has obtained a certificate a practice under section 6 of that Act, or
(d) a post – graduate or an Honours degree holder in Commerce or a post – graduate degree or
diploma holder in Business Administration from any recognised University; or
n
(e) a person formerly employed in the Departments of Customs or Central Excise or Narcotics
r.i
and has retired or resigned from such employment after having rendered service in any
capacity in one or more of the said Departments for not less than ten years in the aggregate.
e
Explanation. – In this rule, “Recognised University” means any of the Universities specified below,
nc
namely: -
I. Indian Universities
re
Any Indian University incorporated under any law for the time being in force in India;
II. Rangoon University
fe
III. English and Welsh Universities

.re
The Universities of Birmingham, Bristol, Cambridge, Durham, Leeds, Liverpool, London,

Manchester, Oxford, Reading, Sheffield and Wales:
IV. Scottish Universities
w
The Universities of Aberdeen, Edinburgh, Glasgow and St. Andrews;

w
V. Irish Universities
w
The Universities of Dublin (Thirty College), the Queen’s University, Belfast and the
National Universities of Dublin;
VI. Pakistan Universities
Any Pakistan University incorporated under any law for the time being in force;
VII. Bangladesh Universities
Any Bangladesh University incorporated under any law for the time being in force.
Authority under section 146 A (5) (b). – The Commissioner of Customs having jurisdiction in the
proceedings in which a person, who is not a legal practitioner, is found guilty of misconduct in connection
with that proceeding under the Act shall be the authority for the purposes of clause (b) of sub-section (5)
of section 146 A.
However, as it is clear from sub-sec. (3) of sec. 108 that appearance through authorised
agent (which expression, it may be assumed, is synonymous with the expression àuthorised
representative’ as defined in sec. 146A) is not discretionary with the person summoned to appear
for examination. The discretion lies with the summoning officer, who may direct the person
summoned either to attend in person or by an authorised agent. And Sec. 146A (1) of the
Customs Act, 1962 as already seen, makes it imperative for the person to appear personally and
www.referencer.in
85
not by an authorised representative when he has been directed to do so. Thus, a person
summoned to attend personally under sec. 108, for examination, cannot insist for the assistance
of a lawyer. And the reason is obvious. As a matter of fact sub-sec. (1) of sec.146A authorises
any person who is entitled or required to appear before an officer of Customs etc. in connection
with any proceedings under the Act, may appear by his authorised representative, òtherwise
than when required under sec. 108 to attend personally for examination on oath or affirmation’
(emphasis supplied). So, here there is a statutory bar for a person directed to appear personally
for examination under sec. 108, to insist for appearance through a lawyer. In such a situation the
question that arises for consideration is whether such a person directed to appear personally, is
entitled to the assistance of a lawyer at the time of his examination by the Customs Officer. The
question, as already seen, has been answered in the negative by the Madras High Court in Anil
G. Merchant’s case, though with some reservation as reported in (1985) 20 ELT 292 (MAD).
Article 22 (1) of the Constitution, which provides, inter alia, that a person arrested and detained
shall not be denied the right to consult and to be defended by legal practitioner of his choice. But
since a person summoned to appear under Sec. 108 of the Customs Act, 1962 is neither arrested
nor detained, Article 22(1) of the Constitution cannot be brought in aid by such person. He will
n
be fully governed by Sec. 108 (3) and 146 (1) of the Customs Act, 1962.
NATURE OF STATEMENT :
e r.i
Section 108 of the Customs Act, 1962 is conspicuously silent about the nature of the statement
nc
i.e. whether it should be written or oral, whether the person summoned should give the statement in his
own hand-writing or the officer summoning will record the deposition in his own hand-writing. Sub-Sec. (3
re
) of Sec. 108 of the Customs Act, 1962 only states that – “ all the persons so summoned shall be bound
to state the truth upon any subject respecting which they are examined or make a statement……………..
fe
“ Thus, it is left to the person whether he should write the statement or not. No person can be compelled
.re
to make a statement in his own handwriting. The person can choose to answer the question orally.(In the
matter of Vitthalnathan Vs. Collector of Customs, Madras High Court).
COPY OF STATEMENT – WHEN TO BE GIVEN :
w
A person who has given a statement to a Customs officer cannot insist that a copy of the same
w
should be given to him immediately. The right to get a copy of the statement occurs only at the stage of
w
departmental adjudication or criminal prosecution in a court of law against the person. During the stage
of investigation copies of the statement are not given. But, if the person wishes to keep a note of the
submissions made by him he is at liberty to do so. He can separately make a written note of the
questions and submissions. The departmental authorities cannot object to this. (Delhi High Court, Cr.
M(M) No. 205 of 1983, Cr.M(M) No. 251 of 1983, K.T. Advani Vs. The State).
ROLE OF LAWYER DURING RECORDING OF A STATEMENT :-

Requiring a lawyer to be present while examining or interrogating a person during investigation is
not permitted as held by Supreme Court in the case of-
Poolpandi V/s Supdt. Central Excise in a Criminal Application No. 301 and 302 of 1987.
SEC. 108 OF THE CUSTOMS ACT, 1962 DOES NOT REQUIRE THAT THE STATEMENT SHALL BE
TAKEN ON OATH OR AFFIRMATION :-
It was reported in order No. 75/Cal/90-75 in Appeal No. C-389 of 1989 by Shri Sankaraman,
Member (T) and T.P. Nambiar, Member (J), CEGAT Calcutta in the case of Md. Alangir Vs. Collector of
Customs (Prev.) that -
www.referencer.in
86
Under Sec. 108 of the Customs Act, 1962 any gazetted officer of Customs shall have power to
summon any person to give a statement and such person so summoned shall be bound to state the truth
upon the subject respecting which were examined makes statement. There is nothing in Sec. 108 of the
Customs Act, 1962 which requires that the statement should be taken on oath or affirmation.
INVESTIGATING THE STATEMENT :

Mere recording of a statement is not sufficient in law. There has to be an Independent
confirmation of the version given in the statement. Obtaining the independent confirmation is the
fundamental responsibility of the investigating officer. The statement is only a narration of the activities
and the people involved in it. It need not represent the truth or the genuine facts. It can be just
explanatory fiction, doubtful observation, wrong inference or even suspect evidence. The conclusions in
the statement can be superficial or based on unsubstantiated rumour and speculation. The investigating
officer has to ensure that he is not duped by outright false and convoluted information. Hence his first
duty is to investigate the statement to ascertain the correctness of it.
The investigation has to be done systematically and scientifically. It should not be forgotten that
often falsehoods are asserted and reiterated as truth. Hence the object of any investigation is to reveal
n
the truth.
r.i
The simple and direct way to commence the investigation is to identify the verifiable data given in
the statement. Elementary information like names, addresses, telephone numbers and location, are
e
readily verifiable and if found correct begins to give a ring of authenticity to the statement. The statement
nc
has to be evaluated with other evidence and attending circumstances to prove the fact in issue. ( Orient
Enterprises Vs. Collector of Customs, Cochin – Order No. 584/1985-A, CEGAT New Delhi).
re
Where Suspect refuses to answer

fe
Very often, suspect, having had legal or other advice, will refuse to answer questions put to him
.re
by the interrogator. This situation can be very difficult, particularly as courts and judges vary considerably
in their decisions as to the admissibility of questions put thereafter. There is only one safe method and
that is for the interrogator to pursue his questioning as vigorously as possible in an attempt to ensure that
w
all conceivable questions are put to the suspect. The following procedure can be of assistance:
w
(a) Ask suspect why he refuses to answer.

w
(b) Be patient, take him quietly and explain to him that your inquiries have brought him under
suspicion but he is innocent his answer to questions will undoubtedly assist in clearing him of this
suspicion.
(c) Inform him that you are prepared to go to any lengths to establish his innocence and will interview
anybody he wishes, make any inquiries or transport him anywhere to assist.
(d) If he persists to answer, keep asking questions to cover every aspect of crime.
(e) Ask him of he has any witnesses or people who can provide him with an alibi or assist in
establishing his innocence.
(f) Try to pin-point the defence he will later put forward and question him now to destroy or nullify its
effect.
(g) Finally, if he has answered, put this question to him:
“Are we take it from your refusal to answer questions that you have in fact no answer to the
allegations which I have put to you?”
www.referencer.in
87
RETRACTION OF STATEMENTS
Retraction of a statement means to withdraw or revoke a statement. Very often, persons who give
statements under Section 107 or 108, as the case may be, give intimation to the Customs authorities
about their decision to retract the statements given by them.
The general reasons given for retraction are:
(1) Statement recorded under coercion, threat and duress
(2) Statement recorded by giving inducement
(3) Statement dictated by the authorities
Belated retraction does not merit consideration. What will constitute a belated retraction will
depend upon the fact and circumstances, and the reasons for belated retraction.
IMPORTANT FEATURES
SECTION 107 SECTION 108
1. Examination by any officer of Customs Examination only by a Gazetted officer of
empowered in this behalf by general or Customs
n
special order of the Collector of Customs
2. No requirement that person summoned is

bound to state the truth
e r.i
Person summoned is bound to state the truth
nc
3. Not a judicial proceeding Deemed to be a judicial proceeding within
the meaning of Sections 193 and 228 of the
re
Indian Penal Code (45 of 1860)

4. Not a statement made by a person accused Not a statement made by a person accused
fe
of an offence of an offence
.re
5. Not covered by Section 25 of the Evidence Not covered by Section 25 of the Evidence
Act Act
w
6. -- Cannot be considered as an investigation

into a criminal offence, by an officer-in-
w
charge of a police station under Chapter XII

w
of Code of Criminal Procedure, which is the

test for the application of Section 25 of the
Evidence Act
7. -- Statement not hit by Article 20(3) of the
Constitution
8. Not applicable If a person does not answer he is liable to be
prosecuted under Section 228 IPC
9. Not applicable If a person gives false evidence he is liable
to be prosecuted under Section 193 IPC for
giving false evidence in a judicial proceeding
10. -- Section 132 of the Evidence Act not attracted
11. -- Not competent to administer oath to any

person making statement
www.referencer.in
88
12. -- Lawyer cannot be present

13. -- Inducement, threat, coercion, duress not
permissible
14. -- Prolonged custody not permissible
15. Not applicable Cannot be treated as a confession recorded
by a Magistrate, under Section 164 Cr. P.C.
The above are the prominent aspects of statements recorded under Sections 107 and 108.
n
e r.i
nc
re
fe
@@@@@@@@@@@@
.re
w
w
w
www.referencer.in
CHAPTER - EIGHT
ADJUDICATION
1.0 Introduction:
1.1 Customs Act is a complete code with its own procedure and its own papers. As far as the
adjudicating proceedings in respects of seized goods are concerned, clear cut proceedings are
prescribed under the Act. The Customs Department is functioning as a quasi-judicial tribunal.
1.2 When there is a power to decide and determine to the prejudice of a person the duty to act
judicially is implicit in the exercise of such power. The duty to act judicially arises from the very nature of
the function. It need not be shown to be super added.
1.3 When acted in a quasi-judicial capacity, the rigid court room proceedings are not called for. What
is required is only to follow the principles of natural justice.
1.4 The doctrine of natural justice principally consists of two rules. “Nomo debit esse judex in propria
causa”, no none shall be a judge in his won cause and “Audi alteram partem”, no decision shall be given
against a party without giving him a reasonable hearing. (Menaka Gandhi vs. Union of India, AIR 1978
n
SC 597 per Bhagavati of P 626).
r.i
The audi alteram partem rule, in its fullest amplitude means that a person against whom an order
to his prejudice may be passed, should be informed of the allegations and charges against him, be given
e
an opportunity of submitting his explanation thereto, have the right to know the evidence, both oral and
nc
documentary, by which the matter is proposed to be decided against him, and to inspect the documents
which are relied upon for the purpose of being used against him, to have the witnesses who are to give
re
evidence against him examined in his presence and have the right to cross-examine them, and to lead his
own evidence in his defense.
fe
1.5 Section 124 of the Customs Act, which provides for issue of a Show Cause Notice, is in
.re
conformity with the principles of natural justice enumerated above.

2.0 Statutory provision:
2.1 Section 124 of the Customs Act, 1962, stipulates the provisions for issue of show cause notice
w
before confiscation of goods etc.

w
2.2 No order of confiscation of goods or imposition of penalty shall be passed on the owner of the
w
goods or any other person, unless

a) A notice is given in writing to the owner or such person;
b) Reasonable opportunity for making a representation in writing;
c) Reasonable opportunity of being heard.
2.3 The notice and representation can be oral at the request of the person concerned.
3.0 Time limit for issue of Show Cause Notice:
3.1 No time limit has been specified in Section 124 for issue of the notice.
3.2 But sub – section 2 of Section 110 states that the goods seized under Section 110(1) will have to
be returned to the person from whom it has been seized, if no notice under Section 124(a) is
issued within a period of six months from the date of seizure.
3.3 Proviso to Section 110(2) provides for extension of the aforesaid period of six months, on
sufficient cause being shown, for a period not exceeding six months by the Commissioner of
Customs.
There can be no doubt that the proviso the second sub-section of Sec. 110 contemplates
some sorts of inquiry. The Commissioner, obviously is expected not to pass extension orders
mechanically or as a matter of routine but only on being satisfied that there exist facts which
www.referencer.in
90
indicate that the investigation could not be completed for bona fide reasons within the time laid
down in Sec. 110 (2), and that therefore, extension of that period has become necessary. He
cannot, therefore extend the time unless he is satisfied on facts placed before him that there is a
sufficient cause necessitating extension. The burdens of proof in such an enquiry is clearly on the
Customs Officer applying for extension and not on the person from the goods are seized. An ex-
parte determination by the Commissioner would expose his decision to be one sided and perhaps
one based on the incorrect statement of facts. How then can it be said that his determination that
a sufficient cause exists is just and fair if he has before him a one-sided picture without any
means to check it unless there is an opportunity to the other side to correct or controvert it. The
difference in the language used in the first sub-section and the proviso to sub-section (2) lends
support to the contention that the power in one case may be subjective, and therefore, not calling
for an enquiry, and the power in the other is one, the exercise of which necessitates an enquiry
into the materials placed before the Commissioner for his determination.
Thus these considerations lead to the conclusion that the power under the proviso is not
to be exercised without an opportunity of being heard given to the person from whom the goods
are seized. ( Asstt. Commissioner v/s Charandas Malhotra, 1983 ELT (S.C.) 1477. )
n
4.0 Principles of natural justice:
r.i
4.1 Issue of a show cause notice is a preliminary requirement according to the principles of natural
justice, which says no one should be condemned unheard. (Buharudin Hussain Vs. State Air
e
1970 AP 337). The issues of show cause notice is not merely a formality but is an essential
nc
requirement either of statutory provisions or the principles of natural justice to which all quasi –
judicial authorities are bound. (Prem. Bus Services Vs. R.T.A. AIR 1961 SC 344, Rajasthan
re
Tobacco Company Vs. Assistant Commissioner of Central Excise (1977 ELT J 636)
4.2 What principles of natural justice requires is not the issue of a Show Cause Notice as a formality,
fe
but of informing person concerned ass the grounds on which the action is proposed to be taken.
.re
4.3 The notice should be specific and unambiguous. (Charan Das Malhotra Vs. Asstt. Commissioner
of Customs AIR 1968 Cal.28).
4.4 The Show Cause Notice should contain all the grounds and allegations since order can not go
w
beyond the show cause notice. (YACA (India) Pvt. Ltd. Vs. Union of India – 1980 ELT 227(Bom)
w
and Wimco Ltd. Vs. U.O.I. – 1980 ELT 235 (Bom)).

w
4.5 When confiscation of the goods is proposed, show cause notices have to be issued to the owner
of the goods and also to the person from whom the goods have been seized. Similarly, show cause
notices have to be issued to all persons on whom penalties are proposed to be imposed.
4.6 Section 122 of the Customs Act, 1962 prescribes the powers of various officers to adjudicate
offences. Section 124 (b) does not specifically provide that the person who passes the adjudication order
must issue the Show Cause Notice. (Taraknath Sen Vs. U.O.I. AIR 1977 Cal.).
4.7 The Officer issuing the Show Cause Notice need not be the same, as the Officer adjudging the
confiscation, as proceedings for Show Cause Notice do not form part and parcel of the adjudication
proceedings. (Manilal B. Patel V. Kaul AIR 1976 Gujarat 134 – 39).
{So far as issue of show cause notice is concerned, it has been held that so long as the officer to
whom the cause is to be shown is indicated in the notice itself, there is no objection to such a notice being
issued by any other officer. It has to be borne in mind however, that even then, it is always open to the
officer, who has finally to take the decision, to issue a fresh show cause notice if he feels that the
previous one was inadequate or defective for some reasons or on some point. Where, however, cause
has been shown to one officer as indicated in the show cause notice, but the final adjudication is to be
done by another officer, it may not be held to be instruct consonance with the principles if natural justice.
www.referencer.in
91
If the latter does not issue a notice himself. Here also, however, to avoid delay, since justice delayed
often amounts to justice denied, if the party concerned indicates in writing that he does not desire to show
any further cause, the case may be decided without a fresh show cause notice being issued.
It is now settled law that an order of confiscation or penalty under the Customs Act is not a mere
administrative or executive act, but is a quasi-judicial act and that, therefore, an application for a writ of
certiorari lies in respect of such an order. Hence, the need for issuing a proper and comprehensive show
cause memo, and adjudication order cannot be overemphasized.
[ C.B.R. Letter F. No. 100/- 1/62-L.C.I. dated 5.2.62 ]}
4.7 In the Show Cause Notice along with the grounds and allegations, the provisions of statute
contravened and the provision, under which action is proposed to be taken, should also be clearly
mentioned.
{ Issue of Show Cause Notice Under proviso to Section 28 of the Customs Act, 1962
A doubt has been raised whether in the cases where the department had passed an order and at
a later stage it has come to the notice of Department that the Importer had not only misrepresented the
facts before the Commissioner but had also filed a manipulated and fabricated documents, a fresh show
n
cause notice can be issued in such cases under the proviso to section 28 of Customs Act, 1962 for an
r.i
extended period of 5 years.
The matter was referred to Law Ministry by Board for opinion. The Ministry of law after careful
e
consideration of the issue and based on the decision in the light of the case of Pieco Electronics &
nc
Electricals Ltd. Vs. CCE, Pune [1994 (71)] ELT 1053 of the Supreme Court in the case of BOI Vs. M/s.
Maheswari Woollen Mills (AIR 1993 SC 1251) has held that the competent authority can issue fresh show
re
cause notice if new facts come to light. The aforesaid case related to Section 11A of the Central Excise &
Salt Act, 1944, which is similar to Sec. 28 of the Customs Act, 1962, had opined that in the circumstances
fe
of the case, if the department is satisfied that the requirements of proviso to section 28 of Customs Act,
.re
1962 are satisfied, then the competent authority can issue a fresh show cause notice if new facts come to
light.
[Mumbai Custom House S. Order No. 7348 dt.3.2.98] }
w
w
Opportunity of making of representation:

w
5.1 Natural justice requires that copies of all documents such as panchanama, statements etc. and
any other documents based on which the allegations are raised, are supplied along with the Show Cause
Notice.
5.2 The Show Cause Notice must be accompanied with copies of statements and it can not be
withheld mechanically on grounds of public interest; (Devichand Vs. Commissioner of Central Excise AIR
1965 A.P.41517 = (1965) 2 Cr. L.J. 602; Ganga Vs. State of Maharashtra AIR 1980 SC 1744. 7.8.9 =
1980 Cr. L.J. 1263).
5.3 An adjudication order passed on the basis of an evidence without disclosing its contents to the
petitioner which could give him an opportunity to make submissions against the allegations made therein,
is clearly a breach of the elementary principles of natural justice and as such is liable to be quashed
(Sohanlal Kaushiram Vs.U.O.I. 1980 ELT (Bom).
5.4 The designation and address of the authority in whom the representation is to be made should be
clearly indicated in the Show Cause Notice, in the absence of which it cannot be considered as a proper
opportunity to make a representation.
The notice must state to whom the representation is to be made; when the notice issued by the
Asstt. Commissioner does not state this, an order of adjudication by the Commissioner is liable to be set
www.referencer.in
92
aside, even if the person concerned does not ask for a personal hearing. It may well be that the said
person may waive hearing, because the penalty that may be imposed by the Asst. Commissioner may not
be very much (V Ramananda Vs. Commissioner of Central Excise AIR 1965 Kerala P.286.7).
5.5 The Show Cause Notice should contain, the allegations, the basis for the allegations, actions
proposed to be taken and statutory provisions for such action. It should not contain any affirmative
statements. A notice that states that the petitioner had ‘failed to prove legal importation’ would indicate
that the authority had already made up its mind (Charandas Vs. Assistant Commissioner of Customs AIR
1968 Cal at P.34).
6.0 Reasonable opportunity of being heard:
6.1 The law requires is that the enquiry must be conducted consistently with the principles of natural
justice, stating it broadly, all that the principles of natural justice required are, a fair opportunity to adduce
evidence, opportunity to cross examine either side with regard to the evidence produced and relied on by
the tribunal, the said evidence to be recorded in the presence of the party affected by the evidence, and
the tribunal to give a chance to the party affected by the evidence to explain the allegations therein.
(U.O.I. Vs. T.R. Verma AIR 1957, SC 882.5 = 1958 SC J 142).
6.2 Cross-examination is however not the technical cross-examination in a court of law, otherwise,
n
the Commissioner will find it literally impossible to discharge his functions. (Kishanlal Vs. Commissioner
r.i
of Land Customs, AIR 1967 Cal.P.87 – 8).
6.3 Where the petitioner had furnished a list of all firms from which he had made purchase of watches
e
and the Commissioner on making enquiry’s found that some of the firms were on existent firms, he should
nc
have furnished the petitions a list of the non – existent firms and copies of their statements, so that the
petitioner could prove that the purchases were still genuine. (Charandas Vs. Asstt. Commissioner of
re
Customs AIR 1968 Cal.28 – 33).

6.4 Where the Commissioner draws an inference from admitted facts without examining witness,
fe
there is no breach of the principles of natural justice (Pandurang Vs. Commissioner of Central Excise
.re
(1963) 2 Cr. L.J. 467 – 70 = Cr.L.J.460).

6.5 Where the Officer who heard the person concerned, having been transferred, the order of
adjudication, passed by his successor, without fresh hearing is violative of the principles of natural justice
w
(M/s. Ramchand jagadishchand Vs. Deputy Commissioner AIR 1963 Cal 331 – 5 – 6).
w
6.6 Quasi-judicial proceedings under Customs Act – Issue of Show Cause Notices and grant
w
of personal bearing by officers other than the one issuing final orders – Instructions.
a(1) Wherever a personal hearing has been asked for, the adjudicating officer should himself hear the
party before giving decision in the case. Where the outgoing officer had given a personal hearing but had
been unable to issue the final order, the successor in office must offer a personal hearing again, before
the formal order is actually issued. It is, however, open to the party concerned not to have a further
hearing after it has been offered to him. In case the party does not avail of the offer, the fact of the offer
and its not being availed of should be put in writing in the appropriate case records.
6.7 The principles of natural justice do not require that the persons who have given information
should be examined in the presence of the persons concerned or should be allowed to be cross
examined by him on the statement made before the Customs authorities. (Kanunge & Co. Vs.
Commissioner of Customs, Calcutta AIR 1972 Sc.2136).
6.8 If opportunity to cross-examine the witnesses, who effected the seizure, is not given, it would
amount to violation of principles of natural justice. (Ramkishan Agarwal Vs. Commissioner of Central
Excise and Customs 1981 ELT 217(Orissa)).
6.9 The Principles of natural justice do not require that there should be a kind of formal cross-
examination and formal cross-examination is procedural justice. Formal cross-examination of the
www.referencer.in
93
witnesses could hardly improve matters and refusal of the right to cross examine the witnesses formally in
the facts and circumstances of the case did not constitute any violation of the principles of natural justice
and did not deprive the petitioners of any reasonable opportunity of making their representation.
(Ashtyosyh Ghosh Vs. U.O.I. 1977 Cr.L.J. (NDC) 67 (cal); AIR 1976 Cal 80 AIR 1968 Cal 174; AIR 1972
SC 2136).
7.0 Drafting of Show Cause Notice:
7.1 The show cause notice is intended to give the person concerned, a reasonable opportunity of
refuting the charges leveled against him. It is not a mere legal formality but the very basis of adhering to
the principles of natural justice. Hence sufficient care should be taken while drafting the show cause
notice to see that it confirms to all the legal as well as factual requirements.
7.2 A show cause notice should contain:
(i) All the allegations
(ii) All the grounds for such allegation
(iii) Action proposed to be taken
(iv) Evidences that are going to be relied upon
(v) Statutory provisions under which action is proposed to be taken
n
(vi) Full address of the authority to whom explanation is to be offered
r.i
(vii) Time limit within which the explanation is to be offered
(viii) List of documents relied upon in the proceedings
(ix) Copies of such documents.
e
nc
7.3 Care should be taken to avoid the following;
re
(i) Use of affirmative words should be avoided. Use of words like “it is clear” or “it stands
proved” etc. should be avoided in show cause notice.
fe
(ii) Ambiguous allegation should be avoided.

.re
(iii) Facts and evidences extraneous to the allegations should be avoided

(iv) Reference to information or source of information should be avoided
(v) Comments on facts and evidences should be avoided
w
(vi) Executive instructions received from superior officers should not be mentioned in the
w
show cause notice.

w
(vii) Audit objections raised by internal audit or by accountant General should not be cited in
the show cause notice.
7.4 Grounds of Show Cause Notice:
The grounds given in the notice on which the action is proposed to be taken must be
clear, specific and unambiguous. A notice, which is vague, is not a proper notice and all subsequent
proceedings would be vitiated. The notice must mention of giving to the party a reasonable opportunity of
being heard in the matter.
8.0 Service of Show Cause Notice:
8.1 The manner of service of the notice is dealt within Section 153 of the Act. Any order of decision
passed or any summons or notice issued under this Act, shall be served-
a) by tendering the order, decision, summons or notice or sending it by registered post to the person
for whom it is intended or to his agent; or
b) if the order, decision, summons or notice can not be served in the manner provided in C1.(a), by
affixing it on the notice board of the Custom House.
The section requires that notice shall be served by sending it by registered post to the person to
whom it is intended. The section does not require that effective service should be effected on the
www.referencer.in
94
appellant receiving it. This position is made clear by reference to Sec.27 of the General Clauses Act
which states that where any Central Act requires any document to be served by post, then unless a
different intention appears, the service shall be deemed to be effected by properly addressing, pre –
paying and posting by registered post, a letter containing the document, and unless the contrary is
proved, to have been effected at the time at which the letter would be delivered in the ordinary course of
post. The normal presumption, unless the contrary is proved, is that the service shall be deemed to have
been properly effected when a letter is properly addressed pre – paid and posted by registered post. It
will be seen from Section 110 (2) and Section 124 (1) of the Customs Act that a notice in writing informing
the appellant of the grounds on which it is proposed to confiscate the goods or to impose a penalty should
be given within six months from the date of seizure of the goods.
8.2 Notice issued under Section 153 can be sent by registered post either to the person for whom it is
intended or to his agent and if it can not be so served, offering on the notice board of the Customs Officer
may effect the service. What is relevant is not effective service but issuing of the notice in any of the
manners provided in the Section. (Amabali Vs. Commissioner of Customs, 1971 KER L.R. 268)
9.0 Adjudication under the Customs Act, 1962.
Chapter XIV of the Customs Act, 1962 (Sec.111) to 127) deals with confiscation of goods
n
and conveyances and imposition of penalties. While sections 111 and 112 deal with improperly imported
r.i
goods, Sections 113 and 114 deal with the confiscation of goods attempted to be improperly exported out
of India. Section 115 deals with confiscation of conveyances, and Sections 117 to 121 deals with
e
confiscation of packages and their contents, other goods used for concealing smuggled goods and the
nc
sale proceeds of smuggled goods. Section 122 deals with the powers of adjudication and Section 124
with issue of a show cause notice, while section 123 deals with burden of proof in case of certain goods.
re
While taking up a case for adjudication, it may be ensured that -

(i) all the original documents like panchanamas or recovery memos, statements of the accused and
fe
witnesses etc. contraband goods and other incriminating documents, articles and things seized
.re
are lying intact and are available for adjudication.

(ii) post – seizure esquires / investigations are complete in all respects and a resume or a fiscal
report thereof is available on the file, showing evidence against each of the concerned persons
w
and the offences alleged to have been committed by each of them.

w
(iii) a Show Cause Notice has been given within time to all the ‘concerned persons’. In complicated
w
cases, assistance of legal branch or departmental counsel may always be taken in vetting the
show cause notice.
(iv) a separate file each for adjudication and prosecution is opened containing true copies of all
relevant documents etc. right from the beginning i.e. at the stage of seizure and investigation, so
that both the proceedings could be started simultaneously. The original documents, required for
producing in the Court may invariably be kept in safe custody to avoid tampering or loss.
10.0 Principles of Natural Justice:
It is well-settled principle of Indian Administrative Law that a quasi – judicial body should
act according to the principles of Natural Justice in discharging its adjudicatory functions.
11.0 Personal Hearing:

11.1 To the extent possible, personal hearing should be granted if requested for, even if
request for the same is belatedly received but before the adjudication of the case.
11.2 Adjournment may be granted if the officer feels that the grounds are genuine.
www.referencer.in
95
11.3 Opportunity for examination and cross – examination of witnesses pertinent to the issue
may be permitted and the adjudicating officer should have an open mind in the matter.
(i) Having regard to the various recent pronouncement by the Supreme Court and by some
of the High Courts that in quasi judicial proceedings where the evidence of any person is relied upon the
party concerned must be given an opportunity to test such evidence either by cross-examination or
otherwise. The Board considers that as adjudications of of Customs and Central Excise cases are of a
quasi-judicial nature, denial of an opportunity of cross-examining the `Departments’ witnesses by the
party concerned may amount to violation of the principles of natural justice. The adjudicating authorities
should not, therefore, reject requests for cross-examination of witnesses as a matter of course, but
consider the same on their merits.
(ii) Adjudicating authorities should obviously exercise caution against permitting cross-
examination indiscriminately. Where, for instance, there is a question of calling informers for cross-
examination or of producing business men to substantiate the information gathered from them in the
course of confidential market enquiries whereby public interest is likely to suffer, the request for cross-
examination need to be conceded by adjudicating authorities. Some of the other circumstances under
which the adjudicating authorities may turn down request for cross-examination of witnesses may, by way
n
of illustration, be given as under :-
r.i
(a) when production of the witnesses would entail expense or effort not commensurate with
the value of the evidence the witnesses are likely to give, having regard to the facts and
circumstances of the case;
e
nc
(b) when the witnesses are close relatives or dependants of the party concerned whom he
can produce himself;
re
(c) when the witnesses had already been examined by the party concerned during the
course of any enquiry under section 108 of the Customs Act, 1962 and/or it is not possible to
fe
produce those witnesses before the adjudicating authorities at the time of personal hearing, etc.
.re
In any case the Department is not bound to offer for cross-examination any witnesses whose
statements have not been relied on in the show cause notice.
For purposes of administrative record, it will, however, be necessary to record briefly in writing on
w
the file the reasons for refusal of the request to permit cross-examination of the witnesses.
w
(iii) It will be the responsibility of the Department to produce its witnesses whose cross-
w
examination is permitted by the adjudicating authorities. The expenses, if any, for the production of such
witnesses will have to be borne by the Department itself.
[ M.F.D.R., letter NO. 4/62/61 CUS VI OF 23.12.61 ]
11.4 The adjudicating authority under his dated signature should record the arguments raised
at the time of Personal Hearing and evidences brought out by examination of witnesses if any.
Granting of copies of depositions in cross examinations and re-examinations:

“There is, of course no legal objection to the grant of copies of depositions of witnesses in the
departmental enquiries. But the principles of natural justice do not require this if the party is actually
present and has been hearing the oral evidence, because it is for him to take note of the points emerging
from the oral evidence and to make use of it for cross-examination etc. No doubt in proceedings before
Courts parties are granted certified copies of depositions of witnesses subject to certain conditions. But
the enquiry by an Administrative Tribunal is not exactly a judicial adjudication trial are not automatically
applicable to a quasi judicial adjudication by an Administrative Tribunal.
www.referencer.in
96
2. There may, of course, be cases where it might be necessary owing to the complexity of the case
or otherwise to furnish the party with copies of deposition. In this case there might be justification
for grant of copies of depositions. But it cannot be a rule that copies should invariably be granted.
In other words the question of granting copies should be decided with reference to the facts of
each case and no hard and fast rule should be adopted.
[ Board’s Letter F. No. 4/99/62-Cus.VI dated 18.4.1963 ]
11.5 Adjudicating officers should have an open mind and be liberal in allowing legal
practitioners to appear before them in complicated and important cases.
11.6 In personal hearings, the notice should be heard as a matter of policy by the adjudicating
authority himself and not through subordinate to him.
11.7 Where an outgoing officer had given a personal hearing but was unable to issue final
orders, the successor in office must offer a personal hearing again before passing order.
12.0 Adjudicating Authority should be free from bias:
n
If the adjudicating authority is influenced to improperly favor one party against the other, it
r.i
is said to be biased. The bias disqualifies an individual from acting as an adjudicator flows from two
principles:-
(i)
e
No one should be a judge in his own cause;
nc
(ii) Justice must not only be done but also seen to be done.
re
13.0 Passing of Adjudication Order:

13.1 The adjudicating order should be a speaking order.
fe
(1) Speaking order- Opportunity to the party interested in the dispute to prevent his case on
.re
questions of law as well as fact, ascertainment of facts from materials before the Tribunal after disclosing
the materials to the party against whom it is intended to use them and adjudication by a reasoned
judgement upon a finding of the facts in controversy and application of the law to the facts found, are
w
attributes of even a quasi-judicial determination. It must appear not merely that the authority entrusted
w
with quasi-judicial authority has reached a conclusion on the problem before him : it must appear that he
w
has reached a conclusion which is according to law and just, and for ensuring that he must record the
ultimate mental process leading from the dispute to the solution ….. Recording of reasons in support of a
decision on a disputed claim by a quasi-judicial authority ensures that the decision is reached according
to law and is not the result of caprice, whim or fancy or reached on grounds of policy or expediency. A
party to the dispute is ordinarily entitled to know the grounds on which the authority has rejected his
claim. If the order is subject to appeal, the necessity to record reasons is greater, for without recorded
reasons the appellate authority has no material on which it may determine whether the facts were
properly ascertained, the relevant law correctly applied and the decision was just – Messers Mahabir
Prasad Santhosh Kumar v. State of U. P. – 1970 (1) SCC 764 [S.N. Mukherjee v. Union of India – 1990 –
(4) SCC 594].
(2) “ Statement of reasons is one of the essentials of justice”. “Reasoned decision is not only for the
purpose of showing that the citizen is receiving justice, but also a valid discipline for the Tribunal itself”. –
State of W. B. v. Atul Krishna Shaw – AIR 1990 SC 2205.
(3)“The Commissioner was obliged to write a speaking order. That speaking order had to show that he
had applied his mind to all relevant aspects of the controversy before him. If his order did not show such
application of mind, the court could not assume that he did apply his mind. The court must (then)
www.referencer.in
97
conclude that he did not apply the mind. If the court finds it inappropriate to consider the controversy, it
must remand the matter for consideration”. (Satellite Engg. Ltd. v. Union of India – 1987 (31) E.L.T. 356
(Bom.) )
(4)Order passed without giving reasons for the same was liable to be set aside and the matter remanded
for reconsideration. – Arunachal Plywood Industries v. Commissioner – 1989 (43) E.L.T. 695 (Tribubnal).
As a result of an analysis of about one hundred adjudication orders, the Directorate of Inspection
(Customs & Central Excise) have prepared a note pinpointing the principal defects in such orders. A copy
of the said note is appended for the information and guidance of all the officers concerned.
List of defects noticed.

(i) The main defects from which most of the orders suffer from is that they are not “speaking
orders”. It is one of the important ingredients of the principles of natural justice that the authorities vested
with quasijudicial powers must pass “reasoned orders”, even though no such obligation may have been
laid down in the statute. This is particularly so when there is provision for appeal against the order. The
general pattern followed in drafting adjudication orders has been to, first set out the facts of the case as
enumerated in the Show Cause Notice, then state the various arguments put forward by the
n
Parties and then to dispose of the matter in one sentence by adding some thing on these lines viz.,
e
adduced by the party. The evidence produced is not satisfactory". r.i
“ I have carefully considered the arguments put forward. I am not convinced of the ground
nc
Orders of this type will not help the parties in understanding why the particular pleas put forward
by them have been dismissed as unconvincing or unsatisfactory and what exactly they should do to
re
convince the Appellate or Revisionery authorities. Even at the appeal stage, it becomes difficult for the
Appellate authority to know the grounds on which the claims made by the parties were rejected. The
fe
importance of passing a self-contained order which not only sets out the facts of the case, the arguments
.re
put forward by the party as also the detailed grounds on which each point made by the party is accepted
or rejected cannot be over-emphasised. Every Adjudicating officer should recount in their orders all the
essential arguments put forward by the parties, deal with each of them on merits and come to a reasoned
w
conclusion on every single point. Though no doubt, this will result in the orders being elaborate and
w
consequently take more time of adjudication officers, it is necessary that in the interests of justice, this is
w
invariably done.
(ii) Some adjudication orders lack proper analysis of the evidence submitted by the parties.
An attempt should be made to consider carefully every piece of evidence submitted by the party and
sufficient grounds should be adduced in the order for rejecting or accepting the same. The present
tendency is to dismisses the evidence submitted, by a sweeping statement that “the evidence has been
carefully considered but has not been found to be acceptable”.
(iii) Another defect is that in many adjudication orders, it is not clearly brought out in what
manner and to what extent the provisions of the law have been contravened. It is desirable that the
provisions of the particular sections that are alleged to have been infringed be set out clearly and that the
same be brought out unambiguously in the orders issued. The contents of the provisions, which had
been violated, and the manner in which they were violated should be brought out clearly and in a
reasoned manner.
(iv) In a few cases dealing with under-valuation, the adjudicating officers instead of coming to
a definite conclusion as to the correct value, merely state that the value of the goods could under no
circumstances be less than a particular amount and since the declared value is less than that, an offence
of under-valuation is established. Such orders are vague and are likely to be questioned in Courts of
www.referencer.in
98
Law. It is always desirable to come to a definite conclusion regarding the value of the goods in cases of
under-valuation.
(v) When imposing personal penalty under Section 112 or 114 of the Customs Act 1962, it is
always desirable to bring out how the person concerned has committed an act of commission or
commission or a betted such an act or how exactly Section 112 (b) of the Customs Act 1962 is attracted
before a penalty is imposed.
(vi) A few cases have also come to notice where the grounds on which the goods were
finally confiscated, were slightly different from those on the basis of which the show cause notices were
issued. In such cases, it is always desirable to issue revised show cause notices.
(vii) Baggage adjudication orders also suffer from being gauge, on account of full details not
being furnished in the order. In all baggage cases, it is necessary to state clearly in the order itself, the
particular items which have been treated as coming within the scope of the allowance admissible under
the Baggage Rules and their value.
The present practice is to refer to some annexures attached to the order and sometimes, this
leads to doubts in the mind of the Appellate Authority. When using cyclostlyed forms for issue of spot
adjudication orders, in baggage cases, it should be ensured that all irrelevant portions are stricken off and
n
all necessary additions are made. Sometimes, when part of the goods is being confiscated absolutely
r.i
and part released on payment of redemption fine, the adjudication orders are so worded that it is not clear
whether the redemption fine is for the entire portion of the goods confiscated or only for apart thereof.
e
The orders should be drafted in a manner leaving no room for ambiguity.
nc
(viii) In the adjudicating cases relating to parcels coming as gifts, the provisions of the import
(control) order laying down the monetary limits upto which the parcels can come as gifts into India should
re
be clearly indicated.
(ix) In certain adjudication orders, the findings of the Adjudicating Officers are expressed in
fe
terms such as “the goods are deemed to have been imported unauthorisedly.” It would be better to
.re
express the conclusion of the Adjudicating Officer in direct terms as “ I hold the goods as having been
imported unauthorisedly.......”
(x) When certain licenses are held as not covering the goods imported, the orders passed
w
sometimes do not give full details of the licenses produced and as to why they are not valid for the goods
w
under consideration. The orders should be clear in this regard.

w
(xi) Except in cases covered by Section 123 of the Customs Act, 1962 it has to be borne in
mind that the onus of proving the offence rests with the customhouse. In a number of adjudication
orders, it is seen that this onus has been shifted to the parties, particularly in the case of allegedly
smuggled goods, the importation of which was prohibited in the last few years. The department’s case
usually rests on presumptions and doubts, and inability of the parties to prove how exactly the goods
were imported. Then in some cases the scope of Section 123 is even extended to clocks even though
only watches are to be covered.
[ Board’s letter F.No.15/21/65 Cus VI & 28/5/66 ]
Issue of formal Order-in-Original in every case where note order is passed in cases involving
adjudication
The Central Board of Excise & Customs have taken a serious note of the wrong practice being
followed by adjudicating authorities (Asst. Commissioners, deputy Commissioners and Addl.
Commissioners) of not passing formals orders-in-original after note-sheet orders are passed by them.
While the impugned goods in all such cases are being cleared on payment of duty, penalty and fine
adjudged in the note-sheet orders, in the absence of issue of formal orders-in-original, the opportunity to
www.referencer.in
99
review such orders is lost to the Government. Such a practice besides being to tally against the
instructions issued on the subject is also put in consonance with the statutory provisions of review and
appeal.
Central Board of Excise & Customs have therefore directed that all adjudicating authorities be
strictly instructed to invariably issue, without delay, formal order-in-original in every case where note-
sheet order is passed so that the parties concerned (importers etc.) as well as the Department get the
statutory opportunity of examining such orders for further course of action wherever necessary.
[ Mumbai Custom House S.O.No.7344 DT.13.12.97 ]
13.2 The order should contain the allegations raised against the party and the facts and evidences put
forth by the notice in his defense before the adjudicating officer.
13.3 The allegations raised and at the replies there to should be discussed one by one and
decisions arrived at with reasons thereof should be furnished in the order.
13.4 Finally the Adjudicating Authority should clearly mention such of those allegations that
n
stand proved and consequences thereof i.e. liability of the goods for confiscation and liability to penalty
r.i
including the statutory provisions for the same.
13.5
e
In the order portion, the details of the goods confiscated with authority for the same,
nc
quantum of penalty with authority and if any duty is demanded exact amount of such duty with authority
should also be furnished.
re
13.6 If the option to pay a fine in lieu of confiscation as contemplated in Section 125 of the Act
fe
is granted, then the amount of such fine and the period within which such option is to be exercised should
.re
be clearly indicated in the order.

Option in lieu of Confiscation – Exercise of discretion – Recording of reasons
The Government of India, Ministry of Finance, (Deptt. Of Revenue) observes that while ordering
w
absolute confiscation/exercising their discretion the Adjudicating Officers are recording no reasons.
w
Principles of Administrative Law require that discretion should be exercised in a judicious manner i.e.
w
actions should be supported by reasons to enable the courts to look into the validity of these reasons. In
the absence of reasons the departmental order, if challenged in courts, may not stand.
It is, therefore, impressed upon all the Adjudicating Authorities that even for exercise of discretion
i.e., for not giving the option to redeem the goods on payment of fine in lieu of confiscation and for
ordering absolute confiscation reasons therefore should be given in the order-in-original.
[Mumbai Custom House S.O. No. 6786 dated 08.08.83]
13.7 In the case of goods provisionally released pending adjudication, which are not produced
subsequently, adjudication order should specifically mention the same while appropriating the security
deposit suitably.
13.8 In adjudicating cases while the authorities are justified to adopt the reasoning containing
in a superior authority’s instructions, orders should not be issued by quoting the number and date of such
superior authority’s instruction, circular etc.
www.referencer.in
100
13.9 While acting in a quasi-judicial capacity, the officer takes an unbiased decision on
applying his own mind to the circumstances of a case. Therefore office notes by a subordinate authority
should not go to the extent of recommending the final decision or the amount of penalty etc.
13.10 In case of adjudication of cases detected by officers under the Customs Act 1962 where
the said offence also attracts the penal provisions of other enactment, the objective behind adjudication
should be that maximum penalty depending on the gravity of the offence is awarded to the offender and
therefore recourse should only be had under that enactment which provides for exemplary punishment.
An offence which attracts the provisions of both the Narcotics Drugs and Psychotropic Substances Act,
1985 and the Customs Act, 1962 is a case in illustration.
14.0 Powers of adjudication:
Powers of adjudication of various officers are dealt with in Section 122 of the Act. The Central
Board of Excise and Customs in its latest instructions inter – alia indicated that Commissioner of Customs
may adjudicate a case without any value limit. Consequent to the amendment of clause B of Section 122,
n
the powers of adjudication of Assistant Commissioner of Customs under the said Section, has been
r.i
revised, to empower him to adjudicate cases, where the value of the goods liable for confiscation does
not exceed ‘Rupees fifty thousand’. In so far as, adjudication by Deputy Commissioners and Additional
e
Commissioners of Customs shall exercise the same powers of adjudication of cases involving the goods,
nc
whose value does not exceed Rs. 10 lakhs.
re
14.1 Enhancement of Adjudication powers of Deputy Commissioners of Customs:--

(i) In the Finance Bill 1984, which received assent of President on 11th May, 1984 and enacted as
fe
Finance Act, 1984 (21 of 1984) certain categories of cases under the Customs Act. 1962 as spelt out in
.re
the clause-40 of the Finance Bill, 1984 amending Section 129 A of the Customs—Act, 1962 have been
taken away from the jurisdiction of the Customs, Excise & Gold Control appellate Tribunal, (GEGAT).
Consequent upon the exclusion of the jurisdiction of the Appellate Tribunal, a provision has been made
w
for revision by the Central Government of Orders-in-Appeal passed in such cases. With a view to
w
ensuring that, in all cases pertaining to the excluded categories, the first appeal lies to the Commissioner
w
(Appeals) and the second to the Revisionary Authority i.e. the joint secretary to the Govt. of India, Ministry
of Finance (Deptt. Of Revenue), New Delhi, it has become necessary to invest tot Deputy Commissioner
with full statutory powers of adjudication relation to the excluded categories of cases viz.
a) Any goods imported or exported as baggage;
b) Any goods loaded in a conveyance for importation into India, but which are not unloaded at
their place of destination in India; or so much of the quantity of such goods as has not been
unloaded at such destination are short of the quantity required to be unloaded at their
destination.
c) Payment of Drawback as provided in Chapter X and the rules made thereunder.
(ii) Under Section 122 of the Customs Act, 1962, Deputy Commissioners are empowered to
adjudicate cases without any value limit, although by issue of executive instructions their adjudication
powers have been restricted to monetary ceilings.
(iii) In the context of the new provisions as contained in the finance Act, 1984, it has, therefore, been
decided by the Government that, in partial modification of Board’s earlier instructions on the subject, the
Deputy Commissioners may exercise full statutory powers vested in them under Section 122 of the
Customs Act, 1962, in adjudication cases pertaining to the excluded categories only. Powers of
www.referencer.in
101
adjudication of the Deputy Commissioners in respect of cases other than the aforementioned excluded
categories of cases, however, would remain unchanged.
It should be ensured that the cases falling in the excluded categories which have been taken
away from the jurisdiction of the Tribunal are adjudicated at the level of the Deputy Commissioners and
that the-preamble to the orders contain clear directions that first appeal against that order will lie with the
concerned Commissioners (Appeals) and the Government of India, Ministry—of Finance (Department of
Revenue), New Delhi. Additional Commissioner is also, basically a Deputy Commissioner and while
adjudicating baggage cases he should adjudicate it as Deputy Commissioner.
[Mumbai Custom House S/O No.6808]
14.2 POWERS OF ADJUDICATION—COMPUTATION OF VALUE OF THE VEHICLES FOR

DETERMINING THE COMPETENCY OF THE OFFICER WHERE GOODS INVOLVED ARE
CONSIDERABLY LOW IN VALUE.
The competence of the adjudicating officer should be determined by the value of the goods liable
to confiscation as a whole, including vehicles used in the transport of goods, not with standing the amount
of fine (in lieu of confiscation of the conveyance) which may be fixed by the adjudicating authority.
n
[ Board’s Lr.F.No.40/118/63 – Cx.I – 29 /04/ 64 ]
14.3
r.i
Adjudication of cases involving under – valuation of imported goods – reg.
e
In all cases where the value of the offending goods sought to be determined after
nc
investigations is more than Rs.10 lakes, such cases should be adjudicated by the Commissioners of
Customs even if the value declared by the importer is less than Rs. 10 lakes. The adjudication of such
re
cases shall not be done by the Additional Commissioners of Customs or Deputy Commissioners
Customs.
fe
[ Board’s Circular No. 8/95 – CUs dated 23.01.1995) ]

.re
Regarding the cases here value declared by the importer is more than R. 10 lakes but after
investigation the same is sought to be reduced to below Rs. 10 lakes.
w
The matter was examined by Board and it has been observed that in cases where value is
w
declared for higher amount and the value is found to be lower on the advice of experts of otherwise even
w
in such cases, the adjudication is required to be done by the Commissioner of Customs because the
lowering of value is affected when the final order is passed after satisfaction of the adjudicating authority.
Hence Commissioner of Customs has to continue with the Adjudication.
[ Board’s Circular No.7/97 – CUs dated 31.03.1997 ]
14.4 Powers of adjudication of Additional Commissioners Customs – reg.

Para 3 of the Board’s instruction dated 13.05.92 provides that in cases where duty has
not been levied or has been short levied or erroneously refunded because of collusion, willful mis-
statement or suppression of facts etc. the show cause notice by the Commissioner of Customs and the
cases decided by them only.
In partial modification of above instructions it has been decided that in cases where the
duty involved is upto Rs.5 lakes, show cause Additional Commissioners of Customs may issue notice in
such cases and they may also decide the cases.
[ Board’s Circular No.47/97 dated 06.10.97 ]
www.referencer.in
102
14.5 provisional release of seized vehicles. Pending adjudication on deposit of Security and
execution of Bond – Amendment of para 56 of Adjudication Manual regarding.
1. Reference is invited to the instructions for provisional release as contained in para 56 of the
Adjudication Manual based on Ministry’s letter F.No. 22/32/67 – Lc II dated 15.04.68, release of seized
conveyance, under Section 115 of the Customs Act, 1962, to the owner pending adjudication on payment
of security deposit and on execution of the bond, as contained in para 56 of the Adjudication Manual,
based on Ministry’s letter F.No.22/32/97- Lc II dated 15.04.68. It has been provided in the said
instructions that the Bond amount in every case should be the estimated value of the vehicle and that the
security deposits to be made in terms of the bond will depend on the gravity of the offence committed in
relation to the vehicle liable to confiscation under Section 115 of the Customs Act. In the said para itself
certain criteria for deposits to be taken have been mentioned. Which are rather conflicting and confusing
in nature and give an erroneous impression as if the deposits may not exceed Rupees One Thousand i.e.
the maximum penalty leviable under Section 117 of the Customs Act, 1962, normally, though higher
deposits are also provided for.
n
2. In fact recently two instances have also come to the notice of the Board, where in takingr
r.i
ecourse to the above mentioned instructions, some courts have even ordered the provisional release of
seized conveyances carrying smuggled goods on bond and deposit of security of only Rs.1000/-, even
e
though the involvement of the driver/owner of the vehicle in the smuggling of confiscated goods was
nc
prima facie proved.
re
3. The matter has been examined in the Board. It is observed that Section 112 of the Customs Act,
fe
1962, interalia, provides for imposition of penalty on any person, who acquire possession of or is in any
.re
way concerned in carrying, removing, depositing, harboring, keeping, concealing, selling or purchasing or
in any other manner dealing with any goods which he knows or has reason to believe, are liable to
confiscation under Section 111. Such penalty may extend upto five times the duty sought to be evaded
w
on such goods or five times the difference between the declared value and the value thereof or one
w
thousand rupees whichever is the highest, therefore, in cases where transport vehicles are intercepted
w
carrying smuggled goods and are seized in terms of provisions of Section 115 (2) and where on the basis
of investigations, the involvement of driver and / or owner of the vehicle in the transportation and or in
many other way being concerned with in the smuggling of goods seized with the vehicle, is established,
the driver and / or the owner will be liable to penalty under Section 112 of customs Act, 1962, which is
much higher than Rs. 1000/- as provided under Section 117 of the Customs Act. The later penalty is
provided only where for any offence / contravention noticed under Customs Act, 1962, even in relation to
vehicles, no other penalty is impossible under any other section of the Customs Act. A security deposit of
only Rs.1000/- at the time of provisional release of the vehicle, may therefore, be grossly inadequate to
recover the amount of the penalty / fine that may be imposed on the driver and / or owner of the seized
vehicle on adjudication where they are held liable to punishment under Section 112. It has, therefore,
been decided by the Board to contest the provisional release allowed by the Courts in the above
mentioned specific cases. Simultaneously, it has been decided to modify the provisions contained in
Ministry’s earlier / instructions F.No. 22/32/67-LC II dated 15.04.68 and substitute para 56 of the
Adjudication Manual, as under, to remove any doubts and to make it clear that security deposit will be as
may be decided by the proper officer competent to adjudicate or provisionally release the vehicle
depending upon the gravity of the offence.
www.referencer.in
103
PARA 56 – provisional release of seized vehicles, pending adjudication, on deposit of security and
execution of bond-
In cases, where vehicles are seized buy the Customs officers for carrying contraband / smuggled
goods attracting action under section 115 of the Customs Act, 1962, such vehicles may be provisionally
released to its owner, pending adjudication, on payment of security deposit and on execution of a Bond in
the proper form. The Adjudicating officer competent to adjudicate the case under Section 122 of the Act,
may allow provisional release of the conveyances seized carrying contraband / smuggled goods in
violation of the provisions of the Customs Act. The bond amount in every such case should be the
estimated value of the vehicles. The security deposit to be made in terms of the bond will, however, vary
in each case and will depend upon an assessment of the gravity of the offence committed in relation to
the vehicle liable to confiscation under section 115 of the Customs Act, 1962, the involvement of the
person incharge / Driver / Owner of the vehicle and likely minimum penalties that may be imposed on
them. The object of such deposit is mainly to recover the fine in lieu of confiscation that may be adjudged
and penalty, that may be imposed on the driver and / or owner of the seized vehicle involved in the
transportation of contraband / smuggled goods. Before provisional release of the vehicle, it should,
however, be ensured that the same will not be required as evidence at a later date in a court of Law. If it
n
is likely to be so required, the vehicle should not be released even provisionally.
r.i
[ MFDR F.No.591/40/98 – CUs (AS) dated, 01-09-99.]
14.6
e
Permission for reshipment within specified period of confiscated goods:-
nc
In stances have been brought to the notice of the Board where adjudicating or appellate authorities permit
reshipment of goods within a specified period. There are invariably cases where for one reason or the
re
other reshipment is not effected during the period specified in the order in – original or order – in –
appeal. In the absence of any provision for extension of the time limit for reshipment in the order itself,
fe
Customs Houses have taken a view that reshipment beyond the period specified in the order can be
.re
permitted only by the next higher authority. This creates avoidable harassment for the passengers if
reshipment could not be effected in time on account of unavoidable difficulties.
w
Board, therefore, desires that adjudicating as well as appellate authorities while permitting
w
reshipment of any goods should clearly state in the order that reshipment would be permitted within
w
specified period or such extended period as may be permitted by the concerned Assistant
Commissioners.
[Board’s letter F.No. 495/19/87/ - CUS.VI dated 09.04.87]
14.7 Procedure to be followed in respect of re – shipment / re – export of import cargo where

clearance of the same is not sought by the Importer for home consumption – Instructions – reg..
1. It has been observed that different practices have been adopted by different appraising Groups
while permitting re – shipment / re – export of Import Cargo, for which importers have not sought
clearance for home consumption.
Attention in this regard is invited to the decision of Conference of Commissioners of Customs
held in September 1993 at Calcutta. The Conference was of the view that the adjudicating authority
should decide each case of re – shipment / re – export under provisions of Customs Act, 1962 read with
I.T.C provisions.
2. In order to observe uniformity of practice in this regard the following guidelines are issued for
compliance in respect of the requests made by the importers for re – export / re – shipment of
import cargo.
www.referencer.in
104
i. If the goods are not offending in any manner and re – export / re – shipment of the said goods is
sought for bonafide reasons it may be permitted without charging any fine / penalty. This is for
the simple resason that no Act or Rules are contravented when import is made.
ii. In other cases, imposition of fine / penalty etc. may be considered after adjudication by the proper
officer depending upon the marits of each case.
iii. In all the cases, re – export will be allowed only against firm L / C, advance remittance or on
importers providing documentary evidence to the satisfaction of Astt. / Addl. Commissioner of
Customs regarding remittance of foreign exchange etc. This would also be subject to fulfillment
of conditions provided under verious allied acts in force from time to time.
[S.O.No.7220 / 96 dated 29.01.96 issued by Mumbai Custom House]
14.8 Prohibition and restrictions under NDPS Act. 1985 - Possession, import into India, export
from India and transshipment of Narcotic Drugs and Psychotropic Substances is completely prohibited
under Section 8 of the Narcotic Drugs and Psychotropic Substances Act, 1985 and Rules made
thereunder except as provided for in the said Act.
All prohibitions and restrictions imposed by or under NDPS Act 1985 on the import into India,
n
export from India and transshipment of Narcotic Drugs and Psychotropic Substances shall be deemed to
r.i
be prohibited and restrictions imposed by or under the Customs Act, 1962 and the provisions of the
Customs Act shall apply accordingly as per Section 79 of NDPS Act, 1985.
e
No Narcotic Drug or Psychotropic Substances Specified in the NDPS Act, 1985 and rules made
nc
therein shall, be exported out of India / imported into India without export authorization / import certificate
issued by the Narcotics Commissioner and in a manner specified in the said rules.
re
14.9 Imposition or enhancement of personal penalty in readjudication cases under Sec.122 of

fe
Customs Act. 1962:- There may be a situation where the appellate authority had quashed an order of
.re
adjudication in which a fine in lieu of confiscation was imposed with or without personal penalty with
directions for making a de – nova Adjudication. The question arises whether at the time of fresh
w
adjudication it would be legally correct for the adjudicating authority to impose a fresh personal penalty
where no penalty was initially imposed or to impose a penalty higher than one that may have been
w
imposed in the quashed order. The correct legal position is that Section 111 of the Customs Act, 1962
w
provides for dealing with offences enlisted therein. Neither this Section nor any of the provisions in the
said Act provides any guiding principles as to when any of the penalties prescribed therein could be
imposed. In the circumstances the officer making the adjudication has full discretion to inflict the penalty
or penalties provided therein, which in his view may be just adequate to meet the situation existing in a
particular case. The fact that the adjudicating officer did not impose any personal penalty on the previous
occasion, i.e. in the initial (quashed) adjudication, would not debar him from doing so once the said
proceeding is quashed by the appellate authority and proceeds ahead to make a fresh adjudication. This,
however, does not mean that personal penalty could be levied against a person who may not be
concerned with any of the offences described therein and this essential condition should be satisfied
before the punishment of personal penalty could be inflicted. The principle contained in this paragraph
may be followed in Central Excise cases as well.
14.10 Onus of proof that goods are smuggled or imported illegally, on Customs
Department: -
(i) The Customs authorities should exercise caution in deciding cases involving confiscation of
goods merely suspected to has been smuggled and to which Sec.123 of the Customs Act, 1962
www.referencer.in
105
does not apply. While considering the question of onus of proof in such cases, the High Court at
Calcutta observed as follows:
“However, the point is that throughout the order the Asstt. Commissioner assumed that the
burden of proof was on the petitioner No.1 was unable to prove that the goods in his possession
were not smuggled into India or not imported illegally. According to him the petitioner No.1 was
unable to prove that the goods that were seized were not smuggled goods and had not been
illegally imported. In my opinion the entire approach is contrary to law and the order cannot be
supported. The burden of proof in this case did not lie on the petitioner No.1 or either of the
petitioners, but the burden of proof was on the customs authority to prove beyond reasonable
doubt that the goods had been illegally imported and were smuggled goods. The mere fact that
the goods were of foreign make was not sufficient to discharge this onus or shift the same upon
the petitioner. If the respondents had discharged the initial onus of showing that the goods had
been illegally imported, then they could confiscate the same. For purpose of penalty they would
have to go further and show that the petitioner No.1 had been in possession of the said goods
with the knowledge that they were smuggled. That, of course, has never been proved, because
the initial onus had been discharged by the respondents.”
n
r.i
(ii) It is now well settled, that except for commodities which attract the provisions of Section 178 A
S.C.A or Sec. 123 of the Customs Act, the burden to prove that the goods seized are smuggled is
e
on the Customs authorities and save in a very exceptional class of case, this burden never shifts.
nc
Even the provisions of the Evidence Act do not help in shifting the onus. However, in a case
where the person from whose possession the goods are recovered, admits that he imported
re
these goods, he may, by aid of the principles underlying Sec.106 of the Evidence Act, be called
upon to show that he had a licence for such importation. But when the goods are recovered from
fe
a person who is not proved to be the importer of the goods and claims to be a purchaser of the
.re
imported articles, onus is always on the Customs authorities to establish that the goods were
imported contrary to any import prohibition or restriction, and they have to bring home the guilt to
the person alleged to have committed a particular offence by adducing satisfactory evidence.
w
w
(iii) There are three essential ingredients of the offence under Sec.167 (8) of the S.C.A. or under
w
Sec.111 (d) of the Customs Act;

(1) that the importation of certain goods has been prohibited or restricted;
(2) that the goods in question belonging to such category, have been imported into India i.e.,
the goods are of foreign origin;
(3) that such importation has been contrary to such prohibition or restriction.
Unless all the three ingredients are proved by the Department, the offence is not established. In
other words even if the import of a particular commodity has been prohibited for quite some time and it is
also proved that the seized goods of that commodity are; of foreign origin, it would not be sufficient
evidence to hold that the goods seized are smuggled, unless there is evidence which conclusively leads
to the inference that the said goods were imported contrary to any prohibition or restriction. It has been
held that the circumstances that a person makes inconsistent statements regarding the manner in which
he came into possession of the articles, recovered from him, or that he did not maintain proper accounts
to show the purchase of the articles, or that the purchase vouchers produced were found to be forged
cannot necessarily lead to the conclusion that the articles were smuggled or were imported contrary to
any prohibition or restriction. The evidence to justify an inference of smuggling should be one, which is
www.referencer.in
106
relevant for proving the unauthorised importation of the goods and not the unauthorised possession of the
goods.
However, once there is evidence relevant for the consideration of the adjudicating authority and it
reasonably leads to an inference that the goods were imported contrary to any; import prohibition or
restriction, the Courts are not likely to interfere with; the order of confiscation on the ground of
insufficiency of the evidence. In fact in Ambala’s case the Supreme Court upheld confiscation of certain
items which; based merely on a retracted admission of the owner of the goods.
It is further well settled that (a) as soon as it is shown that certain goods have been imported
contrary to the statutory prohibition and restriction they are liable to confiscation and for confiscation it is
not necessary to establish further that the person from whose possession the said goods have been
seized is concerned with the illegal importation, as it is necessary; for awarding the penalty and (b) the
question of bonafides of the person from whose possession the goods have been taken is immaterial,
once it is shown that the goods by whomsoever the importation may have been made, were imported in
contravention of the statutory prohibition or restriction.
If the goods are resnullius i.e. are unclaimed and they are not seized from anybody’s custody or
possession, it would be open to the Department to confiscate them as soon as it is found that they are
n
goods of foreign manufacture and the importation of such goods is prohibited or restricted.
r.i
In view of the foregoing, the investigations should be primarily; directed to procuring evidence
which would be relevant for holding the goods as smuggled, though we should not discard our enquiries
e
regarding the manner in which the goods were acquired by the person from whose possession they were
nc
recovered. It must also be pointed out that the purpose of these instructions is not to slacken anti –
smuggling measures or to discourage town seizures but to make our investigations more purposeful, so
re
that they lead to adjudications which are based on sound legal footings.
[Ministry’s letterF.No.4/116/62 – CUs VI and 4/149/65 – CUs.III]
fe
.re
14.11 Whether same goods can be confiscated twice for misdeclaration of value and
contravention of import Trade Control Regulations – In order to make the position quite clear it would
be better to illustrate it by quoting a specific case; the case is:-
w
A consignment of Toymonicas valued at Rs.1357 was imported form the United States of
w
America without a valid import licences. As the goods originated from a dollar area and were a ‘nil’ item
w
for licensing purpose, they were confiscated absolutely by a Commissioner of Customs. The importers
appealed to the Central Board of Excise & Customs against Commissioners Order but it was rejected.
Against the Board’s order, the importers preferred a revision petition to the Government of India who,
however, directed that the offending goods be released for home consumption on payment of a fine of
Rs.630 in lieu of confiscation. When the case was taken up for action by the Customs in accordance with
Government of India orders quoted above it was discovered that the goods had also been undervalued.
This point had not considered at the time of presentation of the Bill of Entry when the question of Import
Trade Control Offences only was considered. The same goods were again confiscated by the
Commissioner of Customs, for the offence attracting clause 37 of Section 167, Sea Customs Act, and an
option was given to clear them for home consumption on payment of an additional fine of Rs.1500.
Against this new order (original) of the Commissioner the importer preferred an appeal to the Central
Board of Excise & Customs who in the peculiar circumstances of the case held the view that the
Government of India having an exercise of a specified sum as fine, the Commissioner was in law bound
and to carry out this order and to release the goods accordingly.
www.referencer.in
107
Once the goods are released and are taken away, the Commissioner would cease to have
jurisdiction to pass an order confiscating the same. The goods had not yet been released, and that the
owner had not yet paid the amount of fine although he seemed to have offered to do so. The legal effect
of the orders, including the order of the Govt. of India, is that until they are so released the goods stand
confiscated to the Govt. and by section 184, they vest in the Government, subject only to the right of the
owner to redeem them on payment of fine. In the eye of the law, the goods belong to the Government of
India unless and until the fine is paid and the goods are released. It follows, therefore, that since at the
time the commissioner made the order of confiscation the goods already stood confiscated to the Govt.
and were the property of the Government and thus the Commissioners (second) order confiscating the
same goods again for under – valuation is inoperative and null and void. This is the legal position in a
case where the Commissioner of Customs had confiscated the goods and the fine in lieu of confiscation
had not been paid by the importers. Incase of this nature Commissioner has no authority to make the
second order of confiscation before fine has been paid and while the goods already stood confiscated.
A question, however, arises whether the position would change if the fine in lieu of confiscation
had been paid and ownership had reverted to the importer and whether in that case the Commissioner of
n
Customs could lawfully again proceed against the same goods in respect of another offence. The correct
r.i
legal position in this changed context and circumstances is that there is nothing in Customs Act to bar an
action for an offence on the ground that it had not been taken earlier when action was taken in respect of
e
another offence concerning the same goods. If therefore any goods are seized once and confiscated or
nc
any goods in customs custody are confiscated, and the fine imposed in lieu of confiscation is set aside in
appeal or revision it would still be lawful thereafter to seize the same goods, under section 178 in
re
connection with a distinct offence, for which action had not been previously taken, after the ownership has
reverted to the person concerned. The principle contained in this paragraph may be applied mutatis
fe
mutandis to Central Excise cases.

.re
[PARA 71 OF ADJUDICATION MANUAL]

th
14.12 Extension of summary procedure for disposal of adjudication: -- In para 5.13 of their 89
Report, the Estimates Committee have recommended that the summary procedure of adjudication
w
presently adopted in Baggage cases should be extended to even other cases where the parties agree to
w
dispensing with the requirement of Show Cause Notice. After careful consideration of the
w
recommendation made by the Committee, it has been decided to extend the summary procedure, where
the parties so desire in writing, to other similar simple cases besides baggage cases, if they do not
involve determination of any question having a relation to the tariff classification and rate of duty or the
value of goods for the purposes of assessment or frauds prosecution or preventive detention or complex
points of facts or law, etc. It may, however, be emphasised that in every case of summary adjudication
proceedings adopted the waiver of Show – Cause Notice should be only on the basis of a written request
received in this behalf from the concerned party.
[Board’s letter F.No.394/233/84 – CUs (AS) Pt. V dated 06.09.85]
14.13 Adjudication of cases under Duty Exemption Scheme where exports obligation has not
been fulfilled according to prescribed procedure
In a case where export obligation under Duty Exemption Scheme was not fulfilled according to
the prescribed procedure and Department had issued Show Cause Notices for initiating action against
persons importing duty free raw materials under the Duty Exemption Entitlement Certificate, a doubt had
arisen whether it would be necessary to first establish through separate adjudication proceedings that
exports were not as per prescribed procedure. The Ministry of Law to whom the matter was referred
www.referencer.in
108
have, after detailed examination of the matter, advised that nullification of export by adjudication, is not
pre – requisite for action on import violation and that fraudulent exports can be brought up as evidence in
the adjudication by the authority having jurisdiction in the import offence.
[Board’s Circular No.64/95 dated 12.06.95 F.No.605/5/93 – DBK]
14.14 Option in lieu of confiscation – Exercise of discretion – Recording of reasons:- The

Government of India, Ministry of Finance, (Deptt. Of Revenue) observes that while ordering absolute;
confiscation / exercising; their discretion no reasons are being; recorded by the Adjudicating Officers.
Principles of Administrative Law require that; discretion should be exercised in a judicious manner i.e.
actions should be supported by reasons to enable the courts to look into the validity of these reasons. In
the absence of reasons the Departmental order, if challenged in courts, may not stand.
It is, therefore, impressed upon all the Adjudicating Authorities that even for exercise of discretion
i.e., for not giving the option to redeem the goods on payment of fine in lieu of confiscation and for
ordering absolute confiscation reasons therefore should be given in the order – in – original.
[Mumbai Customs S.O. No. 6786 dated 08.08.1983]
n
14.15 Imposition or enhancement of personal penalty in readjudication cases under Sec, 122 of
r.i
Customs Act, 1962. There may be a situation where the appellate authority had quashed an order of
adjudication in which a fine in lieu of confiscation was imposed with or without personal penalty with
directions for making a de – novo Adjudication.
e
The question arises whether at the time of fresh
nc
adjudication it would be legally correct for the adjudicating authority to impose a fresh personal penalty
where no penalty was initially imposed or to impose a penalty higher than one that may heve been
re
imposed in the quashed order. The correct legal position is that Section 111 of the customs Act, 1962
provides for dealing with offences enlisted therein. Neither this section nor any of the provisions in the
fe
said Act provides any guiding principles as to when any of the penalties prescribed therein could be
.re
imposed. In the circumstances the officer making the adjudication has full discretion to inflict the penalty
or penalties provided therin, which in his view may be just and adequate to meet the situation existing in a
particular case. The fact that the adjudicating officer did not impose any personal penalty on the previous
w
occasion, i.e., in the initial (quashed) adjudication, would not debar him from doing so once the said
w
proceeding is quashed by the appellate authority and he proceeds ahead to make a fresh adjudication.
w
This, however, does not mean that personal penalty could be levied against a person who may not be
concerned with any of the offences described therein and this essential condition should be satisfied
before the punishment of personal penalty could be inflicted. The principle contained in this paragraph
may be followed in Central Excise cases as well.
[PARA 73 OF ADJUDICATION MANUAL]
14.16 A CASE AGAINST A DIPLOMAT

In 1998 officers attached to Directorate of Revenue Intelligence seized foreign currency valued
over Rs.90 lakes from the possession of a Diplomat accredited to India. The currencies were sized while
he was departing abroad from Mumbai Airport. The Diplomat admitted in writing the illicit acquisition of
foreign exchange & also the attempt at smuggling the same for monetary consideration.
The sizing unit solicited advice of Ministry of External Affairs for further course of action. In
addition to not to launch prosecution against the Diplomat & Show Cause Notice for imposition of penalty
under the provisions of Customs Act 1962 was not issued in view of his Diplomatic Status & the immunity
conferred thereby from Criminal & administrative proceedings. However, as it is mandatory to issue a
notice under section 124 of the Act to the owner of the goods as such person, before initiating process of
www.referencer.in
109
confiscation, a Show Cause Notice was issued to prior to confiscation of the impaired currencies. In such
cases, Show Cause Notice would be got served through the Ministry of External Affairs. There is no base
to initiate prosecution proceedings / penal proceedings against accomplices in such cases.
n
@@@@@@@@@@@@
e r.i
nc
re
fe
.re
w
w
w
www.referencer.in
CHAPTER – NINE
SETTLEMENT COMMISSION
INTRODUCTION
The literal meaning of the term "settlement" implies an agreement composing differences and it is
generally contemplated to fix or resolve conclusively and there will not be any further development or
proceeding.
Delivering his 1998 Budget Speech, the Finance Minister pointed out that " litigation has been the
bane of both Direct and Indirect Taxes. A lot of energy of the Revenue Department is being frittered in
pursuing large number of litigation pending at different levels for long periods of time. Considerable
amount of revenue also gets locked up in such disputes. Declogging the system will not only incentivise
honest tax-payers, enable Government to realise its reasonable dues much earlier but coupled with
administrative measures would also make the system more user-friendly."
SETTLEMENT COMMISSION
n
The concept of setting up a Settlement Commission was mooted by the Government following the
r.i
legislative amendment through the Finance Act, 1998. Thus the Customs & Central Excise Settlement
Commission under Section 32 of the Central Excises Act, 1944 vide notification no. 40/99-CX (NT) dated
e
9.6.1999. The Commission shall consist of a Principal Bench at Delhi and one additional Bench each at
nc
Calcutta, Chennai and Mumbai. The Principal Bench shall have a Chairman and two Members whereas
each of the additional Benches will consist of a vice-Chairman and two Members. The Commission shall
re
function under the Department of Revenue.

There will now be a post of Commissioner (Investigation) who will be an officer of Customs or a
fe
Central Excise Officer appointed as such Commissioner to conduct inquiry or investigation for the
.re
purposes of settlement.
Objects of the Settlement Commission

w
The object behind the setting up the Commission is to create a channel whereby tax disputes can
w
be settled expeditiously and in a spirit of conciliation rather than prolonging them through adversarial
w
attitude. The Commission is not designed to provide an escape route for tax evaders. It is, in fact,
designed to provide a balance resolution of tax disputes with a view to avoid lengthy litigation, which
neither helps, the Department nor the members of the Trade and Industry. In the proceedings before the
Commission, there are no adversaries but only parties to the Settlement.
Disputes related to Customs

There were no provisions for expeditious settlement of dispute till Chapter XIV-A was introduced
in the Customs Act, 1962. The Settlement Commission constituted under Section 32 of the Central Excise
Act, 1944, can also settle dispute relating to Customs.
The provisions relating to settlement of disputes have been enumerated in Sections 127-A to
127-N of the Customs Act, 1962.
Definitions
Section 127-A in Chapter XIV-A of the Customs Act, 1962, outlines the following definitions-
In this Chapter, unless the context otherwise requires,-
(a) “Bench’ means a bench of the Settlement Commission;
www.referencer.in
111
(b) “case” means any proceeding under this Act or any other Act for the levy, assessment and collection
of customs duty, or any proceeding by way of appeal or revision in connection with such levy,
assessment or collection, which may be pending before a proper officer or the Central Government on the
date on which an application under sub-section (1) of sec. 127-B is made:
Provided that where any appeal or application for revision has been preferred after the expiry of
the period specified for the filing of such appeal or application for revision under this Act and which has
not been admitted, such appeal or revision shall not be deemed to be a proceeding pending within the
meaning of this clause;
(c) “Chairman” means the Chairman of the Settlement Commission;
(d) “Commissioner (Investigation)” means an officer of the Customs or a Central Excise Officer
appointed as such Commissioner to conduct inquiry or investigation for the purposes of this Chapter;
(e) “Member" Means a Member of the Settlement Commission and includes the Chairman and the Vice-
Chairman;
(f) “Settlement Commission ’’ means the Customs and Central Excise Settlement Commission
constituted under Section 32 of the Central Excise Act, 1944 (1 of 1944 ); and
(g) “Vice-Chairman” means a Vice-Chairman of the Settlement Commission.
n
r.i
Eligibility of the Applicant
Section 127-B of the Customs Act, 1962, stipulates that any importer, exporter or any other
e
person may, at any stage of a case relating to him, make an application in prescribed form containing
nc
“Full & True" disclosure of his duty liability which has not been disclosed before the proper officer having
jurisdiction, the manner in which such liability has been derived, the additional amount of Customs duty
re
accepted to be payable by him and such other particulars of such dutiable goods in respect of which he
admits short levy on account of misclassification or
fe
otherwise of goods.
.re
Admissibility of cases for Settlement

Under Section 127-B of the Customs Act, 1962, the following category of cases is excluded from the
w
purview of the Settlement Commission.

w
(1) Cases relating to Customs duty where no Bill of Entry or Shipping Bill, as the case may be, has been
w
filed or where no Show-cause-Notice has been issued to the applicant.

(2) Cases where the additional amount of duty accepted by the applicant in his application does not
exceed Rs. 2 lakhs.
(3) Cases which are pending with the Appellate Tribunal or with any court at the time of making the
application.
(4) Cases involving interpretation of the classification of goods under the Customs Tariff Act, 1975.
(5) Cases involving seizure of dutiable goods or any sale proceeds of the goods, books of accounts or
other documents, under the Customs Act, 1962, before the expiry of 180 days from the date of the
seizure.
(6) Cases relating to goods to which section 123 of the Customs Act, 1962, or provisions under the N D
P S Act, 1985, apply.
Application once made before the Settlement Commission cannot be withdrawn by the applicant and
every application shall be accompanied by such fees as may be prescribed by the Commission.
The application filed by an assessee shall be dealt with by the Commission in terms of provisions of
Section 127-C of the Customs Act, 1962
www.referencer.in
112
CUSTOMS AND CENTRAL EXCISE SETTLEMENT COMMISSION PROCEDURE

In exercise of the powers conferred by sub-section (4) of section 321 of the Central Excise Act,
1944 and sub-section (4) of section 127-F of the Customs Act, 1962, the Customs and Central Excise
Settlement Commission hereby makes the following procedure namely.
Short title and commencement
1. This procedure may be called the Customs and Central Excise Settlement Commission Procedure,
1999.
2. It shall come into force on the date of publication in the official gazette.
Definitions.
2. Unless the context otherwise requires:-
(i) “Central Excise Act” means the Central Excise Act, 1944 (1 of 1944);
(ii) “Customs Act” means the Customs Act 1962 (52 of 1962.)
(iii) “applicant" means a person who makes an application to the Commission under sub- section (1) of
Section 32 E of Central Excise Act or under sub-section (1) of Section 127 B of the Customs Act to have
a case relating to him settled;
(iv) “Authorized representative” means-
n
(a) In relation to an applicant, except where such applicant is required by the Commission to attend in
r.i
person, a person who would be entitled to represent him before any Central Excise and Customs
authority or under Section 35 Q of the Central Excise Act or Section 146 A of the Customs Act.
e
(b) in relation to a Commissioner, a person - (i) authorized in writing by the Commissioner or the
nc
Chief Commissioner; or (ii) appointed by the Central Government as authorized representative or
authorized by the Central Board of Excise & Customs to appear, plead and act for the Commissioner
re
in any proceeding before the Commission.

(v) “Commission” means the Customs and Central Excise Settlement Commission instituted under
fe
Section 32 of Central Excise Act and includes where the context so requires, any bench exercising or
.re
discharging the powers or functions of the Commission.

(vi) “Secretary” means the Secretary of the Commission and includes an Administrative officer.
(vii) “Settlement application” means an application made by a person to the Commission under sub-
w
section (1) of Section 32 E of Central Excise Act or under sub-section (1) of section 127 B of the
w
Customs Act, as the case may be, to have a case relating to him settled;
w
(viii) all other words and expressions used herein and not defined but defined in the Central Excise Act
and the Customs Act, shall have the same meaning respectively assigned to them in the said Acts.
Language of the commission
3 (1) All pleading before the Commission may, at the option of the applicant, be in Hindi or in
English.
(2) All orders and other proceedings of the Commission may, at the option of the Commission, be in
Hindi or in English.
Signing of Notices, etc.,
4 (1) Any requisition, direction, letter authorisation, order or written notice to be issued by the Comm-
ission shall be signed by the Chairman or a Vice-Chairman or any other member of the
Commission or by the Secretary.
(2) Nothing in sub-rule (1) shall apply to any requisition or direction which the Commission may, in the
course of the hearing, issue to an applicant or a Commissioner or an authorised representative
personally.
Procedure for filing settlement application
5 (1) A settlement application shall be presented by the applicant in person to the secretary at the
www.referencer.in
113
headquarters of the Commission at New Delhi or of the bench within whose jurisdiction his case
falls or to any officer authorised in this behalf by the Secretary, or shall be sent by registered post
addressed to the Secretary.
(2) A settlement application sent by post under sub rule (1) shall be deemed to have been presented
to the Secretary on the day on which it is received in the office of the Commission.
Preparation of Paper books, etc,
6 (1) If the applicant or the commissioner, as the case may be, proposes to refer or rely upon any
documents or statements or other papers, he may submit six copies of a paper book containing such
papers duly indexed and paged at least two weeks before the date of hearing under sub-section (1)
of section 32 F of the Central Excise Act, or sub-section (1)of section 127C of the Customs Act, as
the case may be.
Provided that the Commission may in an appropriate case condone the delay and admit the
paper book.
(2) If the applicant proposes to refer to or rely upon any documents or statements or other papers,
during the courses of hearing under sub- section (7) of Section 32 F of the Central Excise Act or sub-
section (7) of Section 127 C of Customs Act, as the case may be, he may submit six copies of a
n
paper book containing such papers duly indexed and paged, within thirty days or within such
r.i
extended period as may be allowed by the Commission, of the receipt of an order under sub-section
(1) of section 32 F of the Central Excise Act or sub- section (1) of Section 127 C of the Customs Act.
e
(3) If the Commissioner proposes to refer to or rely upon any documents or statements or other
nc
papers during the course of hearing under sub-section (7) of Section 32 F of the Central Excise Act,
or sub-section (7) of Section 127 C of the Customs Act, as the case may be, he may submit six
re
copies of a paper book containing such papers duly indexed and paged within thirty days or within
such extended period as may be allowed by the Commission, of the receipt of an order under sub-
fe
section (1) of Section 32 F of the Central Excise or sub-section (1) of Section 127C of the Customs
.re
Act.
(4) The Commission may, suo-motu, direct the preparation of six copies of a paper book by and at
the cost of the applicant or the Commissioner, containing copies of such statements, documents and
w
papers, as it may consider necessary for the proper disposal of the settlement applicant on or matters
w
arising therefrom.
w
(5) The papers referred to in sub-rules (1), (2), (3) and (4) must be legibly written or type- written in
double space or printed. If Xerox copy of the documents is filed, then the same should be legible.
Each paper should be certified as a true copy by the party filing the same and indexed in such a
manner as to give a brief description of the documents, with page numbers and the authority before
whom it was filed.
Filing of affidavit
(7) Where a fact, which is not borne out by or is contrary to the record relating to the case, is
alleged in the settlement application, it shall be stated clearly and concisely and supported by a duly
sworn affidavit.
Date and place of Hearing of application to be notified
(8) The Commission shall notify to the applicant and the Commissioner the date and place of hearing
of the application.
Sitting of Bench
(9) A Bench shall hold its sitting at its headquarters. The Bench may, however at the discretion of
the Presiding Officer, hold its sittings at any place in its jurisdiction notified by the Commission.
www.referencer.in
114
Powers of a Bench
(10) A Bench shall dispose of such settlement applications or matters arising therefrom as the
Chairman may by general or special order direct.
Constitution of Special Bench
(11) (1) The Chairman may, for the disposal of a particular case, constitute a special bench
consisting of at least five Members drawn from all the Benches of the Commission.
(2) The special Bench shall be presided over by the Chairman or a Vice Chairman .
(3) If the Members of the Special Bench are equally divided, they shall state the point or points
on which they differ and make a reference to the Chairman who shall refer the case for hearing on
such point by one or more of other Members of the Settlement Commission and such point or points
shall be decided according to the opinion of the Members of the Settlement Commission who have
heard the case.
(4) Notwithstanding anything contained in the foregoing provisions of this rule, if one or more
persons constituting the Special Bench (whether such person is the Presiding Officer or another
Member of the Special Bench) are unable to function in Special Bench owing to illness or any other
cause or in the event of occurrence of a vacancy either in the office of the Presiding Officer or in the
n
office of one or other Members of the Special Bench, the remaining Members, if more than three may
r.i
function as the Special Bench, and the senior most of the remaining Members shall act as the
Presiding Officer of the Special Bench.
Filing of authorisation
e
nc
(12) An authorised representative appearing for the applicant at the hearing of an application shall
file before the commencement of the hearing a document authorising him to appear for the applicant
re
and if he is a relative of the applicant, the document shall state the nature of his relationship with the
applicant, or if he is a person regularly employed by the applicant, the capacity in which he is at the
fe
time employed.
.re
Verification of additional facts

(13) Where in the course of any proceeding before the Commission any facts not contained in the
settlement application (including the annexure and the statement and other documents
w
accompanying such annexure) are sought to be relied upon, they shall be submitted to the
w
Commission in writing and shall be verified in the manner as provided for the settlement application.
w
Proceedings not open to the public

(14) The proceeding before the Commission shall not be open to the public and no person (other
than the applicant, his employee, the concerned officers of the Commission or the Customs and
Central Excise Department or the authoriesed representatives) shall, without the permission of the
Commission, remain present during such proceedings.
Publication of orders of the Special Bench
(15) The Chairman may, at his discretion, direct the publication of orders or portions containing the
rulings of the Special Bench with such modifications as to names and other particulars therein, as he
may deem fit.
Adjournment of hearing
(16) The Commission may, on such terms as it thinks fit and at any stage of the proceedings,
adjourn the hearing of the application or any matters arising therefrom.
[ Notification dated 26th October, 1999 issued by Joint Commissioner, Settlement Commission,
New Delhi, vide F .No. 22/10/99-Ad IC ]
www.referencer.in
115
CUSTOMS (SETTLEMENT OF CASES) RULES, 1999

In exercise of the powers conferred by Section 156 of the Customs Act, 1962 (52 of 1962), the
Central Government hereby makes the following rules, namely:-
1. Short title commencement:-
(1) These rules may be called the Customs (Settlement of cases) Rules, 1999.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions : In these rules, unless the context otherwise requires:-
(a) “Act” means the Customs Act, 1962 (52 of 1962).
(b) “Form” SC (C)- 1 means the form appended to these rules.
(c) “Settlement Commission” means the Customs and Central Excise Settlement Commission
constituted under Section 32 of the Central Excise Act, 1944 (1 of 1944).
(d) “Officer of Customs” means an officer of Customs as referred to in Section 3 of the Act.
3. Form and manner of application:-
(1) An application under sub-section (1) of Section 127 B of the Act shall be made in form SC (C)-1.
(2) The application referred to in sub-rule (1), the verification contained therein and all relevant
documents accompanying such application shall be signed.
n
(a) in case of an applicant, by the applicant himself or where the applicant is absent from India, then,
r.i
either by the applicant himself or by any other person duly authorised by him in this behalf and
where the applicant is a minor or is mentally incapacitated from attending to his affairs, by his
e
guardian or by any other person competent to act on his behalf;
nc
(b) In the case of a Hindu undivided family, by Karta of such family and, where the karta is absent
from India or is mentally incapacitated from attending to his affairs, by any other adult member of
re
such family.
(c) In the case of a company or local authority, by the principal officer thereof;
fe
(d) In the case of a firm, by any partner thereof, not being a minor,
.re
(e) In the case of any other association, by any member of the association or the Principal Officer
thereof; and
(f) In the case of any other person, by that person or some person competent to act on his behalf.
w
(3) Every application in Form SC (C)-1 shall be filed in quintuplicate and shall be accompanied by a
w
fee of one thousand rupees.

w
4. Disclosure of information in the application for settlement of cases:-

(1) The Settlement Commission may, while calling for a report from the Commissioner of Customs
under sub-section (1) of Section 127 C of the Act, forward a copy of the application referred to in
sub-rule (1) of rule 3. (other than the annexure and the statements and other documents
accompanying such annexure).
(2) Where an order under sub-section (1) of Section 127 C of the Act has been made to proceed
with the application by the Settlement Commission, the information contained in the Annexure to
the application in Form SC(C)-1 and the statements and other documents accompanying such
annexure shall be sent to the Commissioner of Customs along with a copy of the said order.
(5):- (1) Manner of Provisional Attachment of property:-
(1) Where the Settlement Commission, orders attachment of property under sub section (1) of
Section 127 D of the Act, it shall send a copy of such order to the Commissioner of Customs or
the Commissioner of Central Excise having jurisdiction over the place in which the applicant owns
any movable or immovable property or resides or carries on his business or has his bank
account.
www.referencer.in
116
(2) On receipt of the order referred to in sub-rule (1), the Commissioner may authorise any officer
subordinate to him to take steps to attach such property of the applicant.
(3) The officer authorised under sub-rule (2) shall prepare an inventory of the property
attached and specify in it, in the case of the immovable property the description of such property
sufficient to identify it and in the case of the movable property the place where such property is
lodged or kept and shall hand over a copy of the same to the applicant or to the person from
whose charge the property is attached.
(4) The officer authorised under sub rule (2) shall send a copy of the inventory so prepared
each to the commissioner of Customs or the Commissioner of Central Excise as the case may be
and also to the Settlement Commission.
(6):- Fee for copies of reports:- Any person who, under section 127G of the Act, makes an application
for obtaining copies of reports made by any Officer of Customs, shall pay a fee of rupees five per
page of each report or part thereof.
Form SC (C)-1.
n
[ See rule 3 of the Customs (Settlement of cases ) Rules, 1999 ]
r.i
Before the Customs and Central Excise Settlement Commission Bench at........................
e
nc
(Form of application for settlement of a case under section 127b of the Customs Act. 1962)
re
S. A (C) No /99
fe
1. Full Name and address of the applicant:

.re
2. Address for communication:

3. (1) Permanent account no:
w
(2) ITC Code no:

(3) Status (see note 2)
w
4. Commissioner of Customs having jurisdiction over the applicant:

w
5. Period / date of the cause/dispute in connection with which the application for settlement is
made:-
6. Details of Bill(s) of Entry/Shipping Bill(s) filed in relation to the case for settlement:-
7. Proceedings to which application for Settlement relates, the date from which the proceedings
are pending and authority before whom the proceedings are pending:
8. Where any appeal or application for revision has been preferred after the expiry of the period
specified for filing such appeal or application for revision, as the case may be, whether such
appeal or revision has been admitted.
9. Date of Seizure if any:
10. Brief facts of the case and particulars of the issues to be settled:
11. Total amount of duty involved in the dispute:
12. Additional amount of duty disclosed and accepted as payable. (See note 3)
Signature of applicant.
www.referencer.in
117
Verification
I.................son/daughter/wife of ...........residing at ........do solemnly declare that I am making this

application in my capacity as.........and I am competent to verify it.
That the contents of this application are true to the best of my knowledge and belief and no
information relevant to the facts of the case has been suppressed. Annexures of the documents
accompanying the application are true copies of the originals and the tables showing financial
transactions are correct and duly attested by me.
Verified today the........day.........of.........1999. at...........
Deponent.
Note.
1. The application fee should be credited in a branch of the authorised bank or a branch of the State
Bank of India or a branch of Reserve Bank of India and the triplicate copy of the challan sent to the
Settlement Commission with the application. The Settlement Commission will not accept cheques drafts,
n
hundies or other negotiable instruments.
r.i
2. Please state whether individual, Hindu undivided family, company, firm, an association of persons etc.
e
3. The additional amount of customs duty accepted as payable referred to in item 12 shall be given in
nc
Annexure to this application.
ANNEXURE
re
Statement containing particulars referred to in item 10 of the application made under Section 127B
fe
(1) of the Customs Act, 1962.

.re
1. Details of information which has not been correctly declared in the Bill of Entry/Shipping Bill:
2. Additional amount of duty payable on the goods covered in the Bill of Entry/Shipping Bill and
the manner in which such duty has been derived.
w
3. Duty liability accepted out of the total duty demanded in the show cause notice, if any, issued
w
and the manner in which such duty liability has been derived.
w
4. Full and true disclosure of the facts regarding the issues to be settled, including the terms of
settlement sought for by the applicant.
Signature of the applicant

Place:
Date:
[Notification No. 59/99-Cus. (N.T.) dated 22.10.1999 vide F.No 275/154/99-CX 8A ]
Procedure on receipt of application under Section 127 B.

Section 127 C prescribes the procedure for dealing with the application received under Section
127 B as following-
(1) On receipt of an application under Sec. 127-B, the Settlement Commission shall call for a report
from the Commissioner of Customs having jurisdiction and on the basis of the materials contained in such
report and having regard to the nature and circumstances of the case or the complexity of the
www.referencer.in
118
investigation involved therein, the Settlement Commission may, by order, allow the application to be
proceeded with or reject the application:
Provided that an application shall not be rejected under this sub-section, unless an opportunity
has been given to the applicant of being heard :
Provided further that the Commissioner of Customs shall furnish such report within period of the
one month of the receipt of the communication from the Settlement Commission, failing which it shall be
presumed that the Commissioner of Customs, has no objection to such application; but he may raise
objections at the time of hearing fixed by the Settlement Commission for admission of the application and
the date of such hearing shall be communicated by the Settlement Commission to the applicant and the
Commissioner of Customs within a period not exceeding two months from the date of receipt of such
application, unless the presiding officer of the bench extends the said period of two months, after
recording the reasons in writing.
(2) A copy of every order under sub-section (1) shall be sent to the applicant and to the
Commissioner of Customs having jurisdiction.
(3) Subject to the provisions of sub-section (4), the applicant shall, within thirty days of the receipt of a
copy of the order under sub-section (1) allowing the application to be proceeded with, pay the amount of
n
additional duty admitted by him as payable and shall furnish proof of such payment to the Settlement
r.i
Commission.
(4) If the Settlement Commission is satisfied, on an application made under sub-section (1) that the
e
applicant is unable for good and sufficient reasons to pay the amount referred to in sub-section (3), within
nc
the time specified in that sub-section, it may extend the time for payment of the amount which remains
unpaid or allow payment thereof by installments, if the applicant furnishes adequate security for the
re
payment thereof.
(5) Where the additional amount of customs duty referred to in sub-section (3) is not paid by the
fe
applicant within the time specified or extended period, as case may be, the Settlement Commission may
.re
direct that the amount which remains unpaid, together with simple interest at the rate of eighteen per cent
per annum or at the rate notified by the Board from time to time on the amount remaining unpaid, be
recovered as the sum due to the Central Government by the proper officer having jurisdiction over the
w
applicant in accordance with the provisions of Sec. 142.

w
(6) Where an application is allowed to be proceeded with under sub-section (1), the Settlement
w
Commission may call for the relevant records from the Commissioner of Customs having jurisdiction and
after examination of such records, if the Settlement Commission Is of the opinion that any further enquiry
or investigation in the matter is necessary, it may direct the Commissioner (Investigation ) to make or
cause to be made such further enquiry or investigation and furnish a report on the matters covered by
the application and any other matter relating to the case.
(7) After examination of the records and the report of the Commissioner of Customs received under
sub-section (1), and the report, if any, of the Commissioner (Investigation) of the Settlement Commission
under sub-section (6), and after giving an opportunity to the applicant and to the Commissioner of
Customs having jurisdiction to be heard, either in person or through a representative duly authorised in
this behalf, and after examining such further evidence as may be placed before it or obtained by it, the
Settlement Commission may, in accordance with the provisions of this Act, pass such order as it thinks fit
on the matter covered by the application, and any other matter relating to the case not covered by the
application, but referred to in the report of the Commissioner of Customs or the Commissioner
(Investigation) under sub-section (1) or sub-section (6)
(8) Subject to the provisions of Sec. 32-A of the Central Excise Act, 1944 (1 of 1944), the materials
brought on record before the Settlement Commission shall be considered by the Members of the
www.referencer.in
119
concerned Bench before passing any order under sub-section (7) and, in relation to the passing of such
order, the provisions of Sec. 32-D of the Central Excise Act, 1944 (1 of 1944) shall apply.
(9) Every order passed under sub-section (7) shall provide for the terms of settlement including any
demand by way of duty, penalty or interest, the manner in which any sum due under the settlement shall
be paid and all other matters to make the settlement effective and shall also provide that the settlement
shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud
or misrepresentation of facts.
(10) Where any duty payable in pursuance of an order under sub-section (7) is not paid by the
applicant within thirty days of the receipt of a copy of the order by him, then, whether or not the
Settlement Commission has extended the time for payment of such duty or has allowed payment thereof
by instalments, the applicant shall be liable to pay simple interest at the rate of eighteen percent per
annum or at such other rate as notified by the Board on the amount remaining unpaid from the date of
expiry of the period of thirty days aforesaid.
(11) Where a settlement becomes void as provided under sub-section (9) the proceedings with
respect to the matters covered by the settlement shall be deemed to have been revived from the stage at
which the application was allowed to be proceeded with by the Settlement Commission and proper officer
n
may, notwithstanding anything contained in any other provision of this Act, complete such proceedings at
r.i
any time before the expiry of two years from the date of the receipt of communication that the settlement
became void.
e
nc
Other salient features contained in Section 127 can be summarised as below-
No such application shall be rejected unless an opportunity has been given to the applicant of
re
being heard.
Once the application is allowed by the Commission to be proceeded with, the applicant will have
fe
to pay the amount of additional duty admitted by him as payable within 30 days of the receipt of the order
.re
allowing the application to be proceeded with. The Commission, however, has powers to extend the
aforesaid time for payment or to allow payment in instalments provided the applicant furnishes adequate
security for the payment thereof. The decisions of the Commission shall be by majority.
w
The Commission has powers to order provisional attachment of any property belonging to the
w
applicant for the purpose of protecting the interest of revenue during the pendency of any proceedings
w
before it. The Settlement Commission also has powers to grant immunity from prosecution for any
offences under the Central Excises Act, the Customs Act or under the Indian Penal Code or under any
other Central Act for the time being in force in respect of the case covered by the Settlement
Commission. The Commission also has powers to grant immunity either wholly or in part from the
imposition of any penalty, fine and interest under the Central Excises Act or the Customs Act, as the case
may be, in respect of the case covered by the Settlement Commission. No immunity, however, shall be
granted by the Commission in cases where the proceedings for the prosecution for any such offence
have been instituted before the date of receipt of the application under Section 32 E of the Central Excise
Act or section 127-F of the Customs Act.
The Commission also has powers to re-open completed proceedings under certain
circumstances with the concurrence of the applicant.
The Commission also has powers to send a case back to the proper officer in the event of the
applicant not cooperating with the Commission in the proceedings before it.
The order passed by the Commission shall be conclusive. The applicant shall not be entitled to
apply for settlement in relation to any other matter if the applicant has been penalised by the Commission
on the ground of concealment of particulars of his liability in a case or after passing of an order of
www.referencer.in
120
settlement in relation to a case, the applicant is convicted of any offence in relation to that case or if the
applicant’s case has been sent back to the proper officer by the Commission.
The proceeding before Settlement Commission shall be judicial proceedings within the meaning
of Section 193 and Section 228 of the Indian Penal Code and for the purpose of Section 196 of the said
Code. Section 193 of the IPC provides for punishment for intentionally giving false evidence in any
Judicial proceeding. Section 196 of the IPC provides for punishment for using evidence known to be false
and section 228 of the IPC provides for punishment for intentional insult or interruption to any public
servant sitting in Judicial proceedings.
SETTING UP OF ADDITIONAL BENCH AT MUMBAI
(1) In pursuance of the provisions contained in the Finance Act 1998, an Additional Bench of the
Customs and Central Excise Settlement Commission has been set up by the Government at Mumbai.
The Additional Bench at Mumbai would be operational with immediate effect. The office of the Additional
bench at Mumbai is located at the following address:
n
OFFICE OF THE SETTLEMENT COMMISSION, CUSTOMS & CENTRAL EXCISE,
r.i
6TH FLOOR, UTPAD SHULK BHAVAN, BANDRA - KURLA COMPLEX,
BANDRA (EAST), MUMBAI – 400 051.
e
nc
TEL. No EPABX : 652 3010 / 652 3011 / 652 3012
Extn Nos. 1600 to 1621
re
ENQUIRY COUNTER: 1661 (Extn)

FAX : 652 2425 / 652 7675
fe
.re
The Customs & Excise Settlement Commission is designed to provide a balanced, quick and final
resolution of tax disputes with a view to avoid lengthy litigation. All those who are eligible to avail the
services of the Settlement Commission may send their applications to the Customs and Central Excise
w
Settlement Commission, Additional Bench at Mumbai in accordance with the provisions of the Rules
w
contained in Notification No. 55 / 99 C. Ex (N.T.) dated 22nd October, 1999 in respect of Central Excise
w
disputes and in accordance with the provisions of the Rules contained in Notification No. 59 / 99-Custom
(N.T) dated 22nd October, 1999 in respect of Customs disputes. Copies of the above notifications
alongwith the prescribed form of application for settlement of cases are annexed to the Public Notice at
Annexure I & II.
Members of the Trade and Industry are requested to avail of services of the Customs & Central
Excise Settlement Commission for settlement of long pending disputes.
[Public Notice No. 1/SC/WZ/99 dated 28.10.1999 issued by Commissioner (Investigation),

Settlement Commission, Mumbai ]
(2) Attention of the Trade is invited to Notification Nos. 40/99 CX (N.T.) and 41/99 CX (N.T), both
dated 09th June, 1999, constituting Settlement Commission for Settlement of cases under Customs Laws
and Central Excise Laws as specified in Chapter XIV A of the Customs Act, 1962 (No. 52 of 1962) and
Chapter V of the Central Excise Act, 1944 (Act 1 of 1944).
The Additional Bench at Mumbai is situated at the aforementioned address and has started
functioning w.e.f. 1st November, 1999. This Bench has jurisdiction of Commissioners with headquarters
www.referencer.in
121
located in the States of Maharashtra, Gujarat, Madhya Pradesh and Goa. The list of existing
Commissioners of Central Excise and Commissioners of Customs is enclosed as Annexure “A”. The
jurisdiction is determined not by place of business or residence of the applicant but by location of the
Head quarters of Commissioner of Central Excise or Commissioner of Customs having jurisdiction over
such applicant.
In this connection, attention is also invited to Notification Nos. 55/99 C.E (N.T) and 59/99
Cus.(N.T) both dated 22.10.1999, prescribing, interalia, the form of application for settlement of Excise
cases under Section 32 E of Central Excise Act, 1944 {Form SC(E)-1} and Customs cases under section
127B of Customs Act, 1962 {Form SC(C )-1}, Verification, and Annexure thereto, which are to be filed in
quintuplicate alongwith triplicate copy of the TR-6 Challan evidencing payment of application fee of Rs.
1000/-( Rupees One Thousand only) to be deposited/credited under Heading "038-C Excise" -Other
Receipts- fees, fine penalties-etc, for Central Excise cases and Heading "037-Customs" -Other Receipts-
fees, fine, penalties etc, for Customs cases, in the bank as prescribed in the subject Notification (s).
It is emphasised that the “Annexure” to be appended to the Application form SC(E) –1 /SC (C )-1,
as the case may be, and the statement and other documents accompanying the said application should
be submitted in a “sealed cover” to the "Designated Officer” in the Settlement Commission (Additional
n
Bench-Mumbai), at the time of filing the application, to maintain secrecy.
r.i
All the Trade Associations are requested to bring the contents of this Public Notice to the notice
of their Members, Manufacturers, Importers, Exporters, in particular; and the Trade in general.
e
nc
[Public Notice No .2/SC/WZ/99 dated 5TH November, 1999, issued by Commissioner (Investigation),
Settlement Commission, Mumbai ]
re
fe
.re
w
w
w
@@@@@@@@@@@@
www.referencer.in
CHAPTER – TEN
APPEALS AND REVISIONS
PRELIMINARY
Chapter XV of the Customs Act contains the provisions regarding appeals against any order
passed by any Officer of Customs under the said Act. Hence the said provisions should be studied before
any appeal is preferred, to satisfy oneself that an appeal does in fact lie.
Appeal- definition of - A legal proceeding by which a case is brought from a lower to a higher court of
law for reversing 2. An application or reference to corporate, vindicate or decide by a recognized
authority. (Mar. Web. Dic.)
RIGHT TO FILE AN APPEAL

A right of appeal is not a natural right or an inherent right. Any person aggrieved with an order
passed by any authority does not have any natural right to question that decision by way of an appeal,
even if that decision may have adverse civil consequences affecting his rights. An appeal cannot be
n
preferred unless the concerned statute has provided for a right to appeal against that decision. As the
r.i
Supreme Court observed in Ganga Bai V. Vijayakumar (A.I.R. 1974 S.C. 1126) -
“There is a basic distinction between the right of suit and right of appeal. There is an inherent
e
right in every person to bring a suit of civil nature and unless the suit is barred by statute one may, at
nc
one’s peril, bring a suit of one’s choice. It is no answer to a suit, however frivolous the claim that the law
confers no such right to sue. A suit for its maintainability requires no authority of law and it is enough that
re
no statute bars the suit. But the position in regard to appeal is quite the opposite. The right of appeal
inheres in no one, and, therefore, an appeal for its maintainability must have the clear authority of law.
fe
That explains why the right of appeal is described as a creature of statute.”

.re
RIGHT OF APPEAL IS A VESTED RIGHT

The Supreme Court in hoosein kasam dada (India) Ltd. V. State of Madhya Pradesh [ AIR 1953
w
SC 221 = 1983 (13) E.L.T. 1277] observed :

w
“.....a right of appeal is not merely a matter of procedure. It is a matter of substantive right. The
w
right of appeal from the decision of an inferior tribunal to a superior tribunal becomes vested in a party
when proceedings are first initiated in, and before a decision in given by, the inferior court. In the
language of Jenkins, J. in Nana v. Sheku (ILR 32 Bom. 337) to disturb an existing right of appeal is not a
mere alteration of procedure. Such a vested right cannot be taken away expect by express enactment or
necessary intendment. An intention to interfere with or imperil such a vested right cannot be presumed
unless such intention be clearly manifested by express words or necessary implication.”
Again in Garikapatti Veerayya v. N. Subbia Choudhry and Others (AIR 1957 S.C. 540) it was
observed by the majority in para 23 :-
“From the decisions cited above the following principles clearly emerge :
(i) That the legal pursuit of a remedy, suit, appeal and second appeal are really but steps in a series
of proceedings all connected by an intrinsic unity and are to be regarded as one legal proceeding
( ii ) The right of appeal is not a mere matter of procedure but is a substantive right ;
( iii ) The institution of the suit carries with it the implication that all rights of appeal then in force are
preserved to the parties thereto till the rest of the career of the suit ;
www.referencer.in
123
( iv ) The right of appeal is a vested right and such a right to enter the superior court accrues to the
litigant and exists an on and from the date the lis commences although it may be actually
exercised when the adverse judgement is pronounced. Such right is to be governed by the law
prevailing at the date of the institution of the date of its decision or at the date of filing of the
appeal ;
(v) This vested right of appeal can be taken away only by a subsequent enactment, if it so provides
expressly or by necessary intendment and not otherwise.”
PRINCIPLES GOVERNING RIGHT OF APPEAL

The following principles are relevant with reference to a right of appeal : ( 1 ) The pursuit of a
Remedy in law by way of a suit, appeal and second appeal are all steps in a series of proceedings, all
connected by an intrinsic unity ; they are all to be regarded as one legal proceeding ; (2) The right of
appeal is not a mere matter of procedure but a substantive right; (3) The institution of the suit carries
with it the implication that all rights of appeal then in force are preserved for the parties thereto during the
rest of the career of the proceedings; (4) The right of appeal being a vested right accruing on the filing of
the suit, it exists in favour of the parties as on and from the date the lis commences ; although it may be
n
exercised only on the pronouncement of the adverse order the right is to be governed by the law as it
r.i
existed on the date of the institution of the suit or proceeding and not by the law as it stood on the date of
the adverse order or the date when the appeal is filed; (5) This right of appeal can be taken away by a
e
subsequent enactment only if it is so provided either expressly or by necessary intendment and not
nc
otherwise. (AIR 1967 ALL. 214; AIR 1979 Bom. 62; AIR 1977 Cal. 43).
No provision of law in a statute can be claimed to be ultra vires merely because no right of appeal
re
has been conferred under the statute against an order under that provision. (AIR 1975 Punj. 29).
A right of appeal is not a guaranteed or a Constitutional right. It is not a Fundamental right. Hence
fe
the legislature can within its plenary power take away a right of appeal. (AIR 1987 Pat. 33)
.re
PROVISIONS REGARDING APPEALS

Appeals to Commissioner (Appeals). As stipulated in section 128 of the Customs Act. 1962, (1)
w
Any person aggrieved by any decision or order passed under this Act by an officer of customs lower in
w
rank than a Commissioner of Customs may appeal to the Commissioner (Appeals) within three months
w
from the date of the communication to him of such decision or order.

Provided that the Commissioner (Appeals) may, if he is satisfied that the appellant was prevented
by sufficient cause from presenting the appeal within the aforesaid period of three months, allow in to be
presented within a further period of three months.
(2) Every appeal under this section, shall be in such form and shall be verified in such manner as
may be specified by rules made in this behalf.
Appeals to the Appellate tribunal—Section 129 A of the Customs Act, 1962, prescribes that (1)
any persons aggrieved by any of the following orders may appeal to the appellate Tribunal against such
order –
(a) a decision or order passed by the Commissioner of Customs as an adjudicating authority;
(b) an order passed by the Commissioner (Appeals) under Sec. 128A.
(c) an order passed by the Board or the Appellate Commissioner of Customs under Sec. 128, as
it stood immediately before the appointed day;
(d) an order passed by the Board or the Commissioner of Customs, either before or after the
appointed day, under Sec. 130, as it stood immediately before that day:
Provided that no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not
www.referencer.in
124
have jurisdiction to decide any appeal in respect of any order referred to in clause (b) if such order relates
to,--
(a) any goods imported or exported as baggage;
(b) any goods loaded in a conveyance for importation into India, but which are not unloaded at
their place of destination in India, or so much of the quantity of such goods as has not been unloaded at
any such destination if goods unloaded at such destination are short of the quantity required to be
unloaded at that destination;
(c) payment of drawback as provided in Chapter X, and the rules made thereunder :
Provided further that the Appellate Tribunal may, in its discretion, refuse to admit an appeal in
respect of an order referred to in clause (b) or clause (c) or clause (d) where ---
(i) the value of the goods confiscated without option having been given to the owner of
the goods to pay a fine in lieu of confiscation under Sec. 125: or
(ii) in any disputed case, other than a case where the determination of any question having a
relation to the rate of duty of customs or to the value of goods for purposes of
assessment is in issue or is one of the points in issue, the difference in duty involved or
the duty involved; or
n
(iii) the amount of fine or penalty determined by such order, does not exceed fifty thousand
r.i
Rupees.
(1A) Every appeal against any order of the nature referred to in the first proviso to sub -section
e
(1), which is pending immediately before the commencement of Sec. 40 of the Finance Act, 1984 (21 of
nc
1984) before the Appellate Tribunal and any matter arising out of or connected with such appeal and
which is so pending shall stand transferred on such commencement to the Central Government and the
re
Central Government shall deal with such appeal or matter under Section 129-DD as if such appeal or
matter were an application or a matter arising out of an application made to it under that section.
fe
(2) The Commissioner of Customs may, if he is of opinion that an order passed by—
.re
(a) the Appellate Commissioner of Customs under Sec. 128, as it stood immediately before the
appointed day, or
(b) the Commissioner (Appeals ) under Sec. 128-A, is not legal or proper, direct the proper
w
officer to appeal on his behalf to the Appellate Tribunal or, as the case may be, the Customs
w
and Excise Revenues Appellate Tribunal established under Sec. 3 of the Customs and
w
Excise Revenues Appellate Tribunal Act, 1986, against such order.

(3) Every appeal under this section shall be filed within three months from the date on which the
order sought to be appealed against is communicated to the Commissioner of Customs, or as the case
maybe, the other party preferring the appeal.
(4) On receipt of notice that an appeal has been preferred under this section, the party against
whom the appeal has been preferred may, notwithstanding that the may not have appealed
against such order or any part thereof, file, within forty-five days of the receipt of the notice, a
memorandum of cross-objections verified in such manner as may be specified by rules made
in this behalf against any part of the order appealed against and such memorandum shall be
disposed of by the appellate tribunal as if it were an appeal presented within the time
specified in sub-section (3).
(5) The appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-
objection(4), if it is satisfied that there was sufficient cause for not presenting it within that
period .
(6) An appeal to the Appellate Tribunal shall be in such form and shall be verified in such
manner as may be specified by rules made in this behalf and shall, in the case of an appeal
www.referencer.in
125
made on or after the 1st day of June, 1993, irrespective of the date of demand of duty and
interest or of levy of penalty in relation to which the appeal is made, be accompanied by a fee
of,--
(a) where the amount of duty and interest demanded and penalty levied by any officer of
customs in the case to which the appeal relates is one lakh rupees or less, two hundred
rupees;
(b) where the amount of duty and interest demanded and penalty levied by any officer of
customs in the case to which the appeal relates is more than one lakh rupees, on thousand
rupees :
Provided that no such fee shall be payable in the case of an appeal referred to in sub-
section (2) or a memorandum of cross-objections referred to in sub-section(4).
APPEALABLE ORDERS
1. “Decision or order”.—The words “a decision or order passed by an officer of customs under this
Act” used in Sec. 188 of the Sea Customs Act, 1878 (corresponding to Sec. 128 of the Customs Act
1962) must mean a real and not a purported determination. A determination, which takes into
n
consideration factors which the officer has no right to take into account, is no determination. In such
r.i
cases the provision excluding jurisdiction of civil courts cannot operate so as to exclude an enquiry by
them. The expression “any decision or order” are of wide amplitude and included all orders or decisions
e
passed under this Act. The authorities deciding the appeal, viz. the Commissioner (Appeals) and the
nc
Appellate Tribunal are functioning as quasi-judicial authorities. The expression used under Sec. 128 to
designate the Commissioners (Appeals)and the appellate tribunal is “appellate authority”.
re
When a person is designated as an appellate authority there is a lis between the appellant who pays the
duty and the revenue; and the order passed by the appellate authority is subject to revision by the Central
fe
Government. The power exercised under this section by the Commissioner (Appeals) or by the Appellate
.re
tribunal being of a quasi-judicial nature, no authority, however high placed, can control the decision of a
judicial or a quasi-judicial authority. This is the essence of own judicial system.
All judicial or quasi-judicial orders would, in their nature, be appealable. Of course this
w
would not necessarily mean that an appeal could, on that score itself, be maintained, since, as already
w
seen, no appeal would lie against such orders unless the statute itself provides for a right of appeal.
w
As to what would make a decision, or act, judicial the Supreme Court observed in the
Jaswant Sugar mills case (AIR 1963 S.C. 677)
“To make a decision or an act judicial the following criteria must be satisfied :
(1) It is in substance an determination, upon investigation, of a question by the application of
objective standards to facts found in the light of pre-existing legal rules ;
(2) That the investigation is subject to certain procedural at-tributes contemplating an
opportunity of presenting its case to a party, ascertainment of facts by means of evidence, if a
dispute be on a question of law on the presentation of legal argument, and a decision resulting in
the disposal of the matter on findings based upon those questions of law and fact.”
ORDER – MEANING OF
It may be noticed that in the provisions relating to appeals in both the Acts there is a slight
change in the words used. In some places the words ‘decision or order’ are used while in some places
the word ‘decision’ alone is used. On the question whether this variation would be of any particular
significance, the decision in Hindustan Safety Glass Works Ltd. (supra) may be referred to. As earlier
noted, the question in that case was whether any appeal would lie against a summons issued for
www.referencer.in
126
production of documents and for that reason of an available alternate remedy the writ petition should be
rejected. In para 10 the High Court observed:
“That summons issued under Sec. 14 does not fall under the category of a decision is not in doubt
and has not been characterised as such even by Shri Dhavan. What he however says is that it is an
order passed by the Asst. Commissioner and is consequently appealable under Sec. 35. We have
considered the submission with the seriousness it deserves, but we find it difficult to accept it. We find in
chapter VI in which Sec. 35 occurs a set of provisions relating to adjudication of confiscations and
penalty which includes provisions for appeals and revisions. When we look into Sec. 35 itself we find that
the word ‘order’ appears to have been used in the sense of an order in enforcement of a decision. This is
clear when we read the proviso to Sec. 35 laying down that no order passed in appeal confirming, altering
or annulling the decision or order appealed against shall be such as will have the effect of subjecting any
person to any greater confiscation or penalty than has been adjudged against him in the original decision
or order. And sub-section (2) of Sec. 35 makes an order passed in appeal final subject to one passed in
revision under Sec. 36 by the Central Board. The nature of an order which admits of an appeal or can be
passed by the appellate authority is, thus, contemplated as one resulting in some confiscation or penalty.
n
The world order in Sec. 35 would not take within its sweep a mere direction to produce some documents
r.i
which, by itself, cannot involve the consequence of any confiscation or penalty.”
e
The High Court thus held that the word ‘Order’ would refer to an order in enforcement of a decision.
nc
It would not include a mere direction without a consequent result of confiscation or penalty. Though the
High Court in the above passage referred to confiscation and penalty only, there can be no doubt that a
re
demand for duty would also be included. In fact orders for demand of duty, as well as orders on the basis
of which subsequent demands for duty could be raised, would all be orders that would be appealable.
fe
For instance, an order on a classification list or a price list is appealable though no demand for duty would
.re
arise until after an assessment later takes place following such an order.
In para 9 of the decision in Commissioner v. Nippon Bearings (P) Ltd. – 1990 (50) E.L.T.
276 the Tribunal has observed as follows :
w
w
“Sec. 122 of the Act should be read with Sec. 124 of the Act. Sec. 124 of the Act speaks of
w
‘an order’ and no reference is made to a ‘decision’. Therefore, the Commissioner while adjudicating
confiscation and penalties passes an order and not a decision. An order under Sec. 122 of the Act
requires communication under Sec. 129A(3) in the absence of which the question of filing an appeal does
not arise. At this stage we may point out that Sec.124 speaks of only an order. We may also point out
that Sec. 129A(3) does not speak of communicating a decision. In other words the parliament has
consciously made a distinction between a decision and an order to be passed under the Act for purpose
of filing an appeal to the tribunal.”
In Vaz Forwarding Pvt. Ltd. V. Commissioner [ 1990 (48) E.L.T. 477] the Tribunal held that
an order suspending the Custom-House Agent’s licence was appealable to the Tribunal as the order had
been passed by the Commissioner as an adjudicating authority. It was so held taking into consideration
the fact that the Custom House Agents Licensing Regulations, 1984 had been framed in exercise of the
powers granted under Sec. 146(2) of the Customs Act and so when the Commissioner acts under
Regulation 21 he does so as an adjudicating authority under the Customs Act. It may also be noted that
Regulation 23 provides for the procedure to be followed before suspension could be ordered and that the
procedure makes it clear that in making an order under Regulation 21 the Commissioner acts as a quasi-
www.referencer.in
127
judicial authority, his orders likely to result in civil consequences to the agent in respect of his right to carry
on a profession and forfeiture of his security amount also.
In Anand Laminates Ltd. v. Commissioner [1993 (64) E.L.T. 255] it was held that an order
by the Commissioner refusing to extend the period of warehousing would not be a mere administrative
order as the power to be exercised was a quasi judicial power and hence an appeal lay against the order
refusing such extension .
PERSON ENTITLED TO FILE THE APPEAL
1. PERSON AGGRIEVED
Sec. 35 and Sec. 35B(1) of the Central Excises and Salt Act, as well as Sec. 128 and
129A(1) of the Customs Act, state that any person aggrieved by the decision or order of the concerned
lower authority may prefer an appeal against the same. Thus, under these provisions no appeal can be
filed unless the person filing the appeal is aggrieved by the impugned order. Sec. 35B(2) of the Central
Excises and Salt Act and Sec. 129A(2) of the Customs Act designate the Commissioner as the person
entitled to file an appeal, permitting him to file the appeal by authorising a suitable subordinate to do so.
n
Sec. 35L of the Central Excises and Salt Act and Sec. 130E of the Customs Act merely read that an
r.i
appeal may be filed to the Supreme Court, there being no specification as to who would be entitled to file
the appeal . Hence once it has been found that an appealable order has been passed it will have to be
e
then verified who would be entitled to file the appeal. The “person aggrieved” would normally be the
nc
person who has been saddled with a liability under the impugned order, either by way of payment of
duty, or penalty, or an order for confiscation, with or without option for redemption. There have been
re
several decisions where this ‘phrase aggrieved’ has been gone into.
fe
Sec. 129A(2) of the Customs Act entitles the Commissioner to authorise the filing of an
.re
appeal, on behalf of the revenue, against an order of the Commissioner (Appeals). As to the process
leading to the filing of the appeal under that provision, the Tribunal held, in Commissioner v. Kirloskar
Cummins Ltd. [ 1987 (28) E.L.T. 65], that the order should be first examined by the Commissioner
w
himself and that the processing should not be from junior upwards. But when a similar submission was
w
made in a later case, Commissioner v. Cawnpore Sugar Works [ 1989 (42) E.L.T. 11], the Tribunal
w
disagreed with that view and held that if the Superintendent had initially gone through the file and made a
recommendation for filing an appeal and then the Commissioner, after having gone through that note,
agreed with that view and ordered the filing of the appeal such an order is not bad in law.
2. COMMISSIONER’S APPEAL
As to the right of a Commissioner to file an appeal under the provisions referred to earlier, it was held
in Commissioner v. Narendra P. Unrao & Ors. [ 1984 (15) E.L.T. 275 ] that the Commissioner has no
right to file an appeal against the order of the Central Board of Excise and Customs. In Commissioner v.
Pondicherry Papers Ltd. [1984 (18) E.L.T. 17] also it was so held even though in that case the
Commissioner had filed the appeal after obtaining the sanction of the Board to do so. In Commissioner v.
Govind Prasad Ruia [ 1987 (31) E.L.T. 723] it was held that the Commissioner was not entitled to file
appeal against order of Special Secretary.
The Assistant Director, Revenue Intelligence, who investigated the case, cannot file an appeal
against the order of adjudication by the Commissioner, as he is not an aggrieved person. Asstt.
Director, Revenue Intelligence v. Pooja Exports [ 1991 (52) E.L.T. 625]
www.referencer.in
128
Failure to send to the respondent copy of the authorisation of the Commissioner would not
invalidate the appeal when there was such an authorisation to file the appeal. – Collr. V. Alliance Udyog
[1993 (64) E.L.T. 258]
3. JOINT APPEALS
In connection with appeals a question that often comes up is whether a common appeal can
be filed by several persons or even by the same person against several orders. Such a situation may
arise under several circumstances :
1. Different show cause notices issued to the same person but finally disposed of under a
single order.
2. The above notices may be disposed of under separate, but identical orders.
3. Single show cause notice issued to several persons and then disposed of under a single
order.
4. Show cause notices to different parties separately but finally disposed of under a single
order.
5. Separate appeals filed by a single individual but all appeals disposed of under a single
consolidated order.
n
6. Separate appeals filed by different persons but heard together and disposed of by a single
r.i
order as involving a common issue.
7. Single appeal filed against several orders and disposed of under a single order without
objection.
e
nc
In respect of (1) above the original order being one it would be sufficient if a single appeal is
re
filed. See Godrej and Boyce Mfg. Co. Ltd. v. Commissioner [1994 (71) E.L.T. 429]. In respect of (2)
above the original orders being multiple in number, as many appeals will have to be filed as there are
fe
orders in original. In respect of (3) above it would be open to two or more of the persons concerned to
.re
join together and file a single appeal but it would be open to each individual to file his own separate
appeal. The same would be the position in respect of (4) above. See Kanta International and Motilal
Gupta v. Commissioner [ 1990 (48) E.L.T. 549] wherein it was held that in respect of an adjudication
w
order under which penalties have been levied against two persons, both of them could jointly file a single
w
appeal. See also Universal Automobile & Ancillary Ltd. v. Commissioner [1991 (56) E.L.T. 346] for the
w
same. When under the same transaction the firm as well as the partner are said to have committed the
offence and penalties are imposed on both under the same order, the firm and the partner are entitled to
file a joint appeal. Universal Automobile and Ancillary Ltd. v. Commissioner [1990 (47) E.L.T. 79]. In
respect of (7) above a single further appeal would suffice as there was only on appeal earlier and that
was disposed of under one order.
In Alliance Mills (Lessees ) Ltd. v. Collr.- 1996 (81) E.L.T. 615 the East Regional Bench had
to deal with a case in which 36 show cause notices were disposed of under a single order with one order
number only. An appeal against that order was also disposed of under a single order with a single
number only. When a single appeal was filed in the CEGAT against that order an objection was taken
that 36 appeals were to be filed and fees paid separately for each such appeal. Thus the situation was
are under (1) and (7) above. The Bench was of opinion that since the order in original as also the order in
appeal were given a single number only the appeal to the CEGAT would also be a single appeal only.
However it took note of an earlier judgment of the South Regional Bench to the contrary and referred the
matter to the President for Constitution of a Larger Bench, observing that the decision in Ekantika Copiers
www.referencer.in
129
also needed reconsideration. It is not known whether a Larger Bench was constituted and, if so, what
was the decision of that Bench.
But the opinion is not uniform in respect of (5) and (6) above. In Unique Pharmaceutical Lab.
V. Commissioner [1983 (12) E.L.T. 628] the Assistant Commissioner’s order related to four bills of entry.
On appeal the Commissioner (Appeals ) passed a single order. A single revision petition was filed to the
Govt. On transfer thereof to the Tribunal an objection was taken that four revisions should have been
filed. It was held that as the order of the Commissioner (Appeals) (it must have been the Appellate
Commissioner) was only one, a single revision would suffice. But it is not clear from the order Whether
there were four appeals before the Commissioner or only one. The above decision was followed in
Bharat Petroleum Corpn. v. Commissioner [ 1988 (33) E.L.T. 563] by the same Bench. However, when
this issue came up before another Bench in P.K. Himatsingka & Co. v. Commissioner [1987 (29) E.L.T.
714] it was held that there should be as many appeals as there are original orders to be contested. It
may be noticed that the contrary view, that one appeal would suffice even in such cases, has been put
forward in the Editor’s note under the above report, as also earlier in the Editorial at page A 102 of 1983
(11) E.L.T. The argument is that as the appeal is under the provisions of Sec. 35-B(1) of Central Excises
n
and Salt Act or Sec. 129A of the Customs Act, which refer to AN ORDER of the Commissioner
r.i
(Appeals), a single appeal should suffice against a single order. Reference is made also to a judgment of
the Andhra High Court C.I.T. v. Venkateswara Talkies (1985 Vol.20 Taxman 47) and of the Calcutta High
e
Court C.I.T. v. Rupa traders (1979 Vol. 118 ITR 412) as supporting the above view .
nc
This is on the theory that after an order is passed in the appeal, the order of the lower
re
authority is merged in the order of the appellate authority and hence there being a single order only of the
appellate authority, one appeal alone would suffice against that order. It may be seen that in S. S.
fe
Rathore v. State of Madhya Pradesh [1989 (43) E.L.T. 790] the Supreme Court has laid down that the
.re
doctrine of merger is applicable not only to proceedings in courts but also to proceedings before
Tribunals. But when applying the above argument is has also to be remembered that while passing a
consolidated order in multiple appeals the usual practice is to give the order multiple numbers equal to
w
the number of appeals, thus making the order in appeal a multiple order though identical. In that event
w
the above argument that there was only a single order in appeal may not hold good. Thus there appears
w
to be much to be said in support of either view.
However, as far as the CEGAT is concerned, multiple appeals are insisted upon as may also
be seen from CEGAT Public Notice No. 3 of 1986, dt. 30-5- in which it is mentioned in para 5 that while
multiple appeals are to be filed, a single consolidated paper book may be filed. This has been finally
settled by the Larger Bench decision reported in Ekantika Copiers (P) Ltd. (supra) it appears that in such
cases also as many appeals are to be preferred as there were 13 appeals filed before the Commissioner
(Appeals) and they were disposed of under 13 separate, but identical, orders since 13 separate numbers
had been given to the order in appeal. This that would be a case falling under (2) above, and not under
(5) or (6) above. But in para 7 of the main order (page 360) the Bench observed :
“Accordingly we hold that where the Commissioner (Appeals) disposes of a number of appeals
by a common order, the appellant should file as many appeals as numbers of orders in original and the
mere fact that a common order has been passed by the Commissioner (Appeals) cannot be a ground for
filing a single appeal.”
The point to be noted is that the above observations cover (2), (5) and (6) above though the facts
in the instant case do not appear to have covered (5) and (6). But since the observations are in a Larger
www.referencer.in
130
Bench decision it is felt that even in cases of (5) and (6) above multiple appeals may be necessary
hereafter.
4. aggrieved person – Who is not :

----- a person who has only an agreement of sale.................................
----- against whom no order has been passed .......................................
----- a person who had made no claim over the confiscated property during adjudication.........
----- whose claim had been upheld in the order on the classification list or price list.................
----- a mere broker...................................................
----- Consignor when Modvat credit is denied ..........................................
----- A person who has no direct legal interest in the goods
----- A CHA unless authorized to file appeal on behalf of importer.............................
----- An Asstt. Commr. In the matter of filing appeal for enhancement of sentence in a
criminal prosecution.
5. No appeal lies against
n
----- direction only .......................................
r.i
----- a trade notice.........................................
----- order of Commr. (A) refusing to grant waiver of pre-deposit .................................
e
----- order of Commr. (A) refusing to grant stay ...............................................
nc
----- a summons for production of documents...................................................
----- an order, unless it is adverse to the claimant .............................................
re
----- a direction to the Asstt. Commr. To prefer an appeal ...............

----- adjustment of previous licence against new licence ..................
fe
.re
6. No appeal lies to CEGAT against

----- order passed by Commr. (A) under Section 35E (4) CESA
----- order for payment of interest on yarn used in fabrics later exported
w
under Rule 13 CER.................................

w
----- Per Contra ...................................................

w
----- order rejecting claim for refund of interest collected on rebated duty of excise.................
7. Appeal lies to CEGAT against

----- order relating to refund claim of cess paid on jute yarn captively consumed......................
----- Demand for cess under Produce Cess Act.............................
----- Order under Cl. 3 of the Jute Manufactures Cess Rules.
FORMS AND PROCEDURE FOR FILING APPEAL
APPEALS TO COMMISSIONER (APPEALS)

Procedure in appeal Section 128 A of The Customs Act, 1962 provides that—(1) The
Commissioner (Appeals) shall give an opportunity to he appellant to be heard if he so desires.
(2) The Commissioner (Appeals) may, at the hearing of an appeal, allow the appellant to go into any
ground of appeal not specified in the grounds of appeal, if the Commissioner (Appeals) is satisfied that
the omission of that ground from the grounds of appeal was not wilful or unreasonable .
www.referencer.in
131
(3) The Commissioner (Appeals) may, after making such further inquiry as may be necessary,
pass such order as he thinks fit confirming, modifying or annulling the decision or order appealed against,
or may refer the case back to the adjudicating authority with such directions as he may think fit for a fresh
adjudication or decision, as the case may be, after taking additional evidence, if necessary :
Provided that an order enhancing any penalty or fine in lieu of confiscation or confiscating goods
of greater value or reducing the amount of refund shall not be passed unless the appellant has been
given a reasonable opportunity of showing cause against the proposed order:
(4) The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall
state the points for determination, the decision thereon and the reasons for the decision.
(5) On the disposal of the appeal, the Commissioner (Appeals) shall communicate the order passed
by him to the appellant, the adjudicating authority and the Commissioner of Customs.
Form of appeal to Commissioner (Appeals) –

Rule 3 of Customs (Appeals) Rules, 1982, prescribes that. (1) An appeal under sub-section. (1)
of Section 128 to the Commissioner (Appeals) shall be made in Form no. C.A.-1.
(2) The grounds of appeal and the form of verification as contained in form No.C.A.-1 shall
n
be signed :-
r.i
(a) in the case of an individual, by the individual himself or where the individual is absent from India, by
the individual concerned or by some person duly authorised by him in this behalf and where the
e
individual is a minor or is mentally incapacitated from attending to his affairs, by his guardian or by
nc
any other person competent to act on his behalf ;
(b) in the case of a Hindu undivided family, by the Karta and, where the Karta is absent from India or is
re
mentally incapacitated from attending to his affairs, by any other adult member of such family.
(c) in the case of a company or local authority, by the principal officer thereof ;
fe
(d) in the case of a firm, by any partner thereof, not being a minor ;
.re
(e) in the case of any other association, by any member of the association or the principal officer thereof ;
and
(f) in the case of any other person, by that person or some person competent to act on his behalf.
w
(3) The form of appeal in Form No. C.A.-1 shall be filed in duplicate and shall be accompanied
w
by a copy of the decision or order appealed against.

w
Form of Appeal to the Commissioner (Appeals) under Section 128 of the Customs Act, 1962
Form No. CA -1
(1) No.................of .................(year).....
(2) Name and address of the appellant.
(3) Designation and address of the officer passing the decision or order appealed against
and the date of the decision or order.
(4) Date of communication of the decision or order appealed against to the appellant.
(5) Address to which notice may be sent to the appellant.
(6) Whether duty or penalty or both is deposited. If not, whether any application for
dispensing with such deposit has been made. (A copy of the Challan under which the
deposit is made shall be furnished).
(6A) Whether the appellant wishes to be heard in person.
7. Reliefs claimed in appeal.
www.referencer.in
132
Statement of facts
Grounds of appeal
(i)
(ii)
. (iii)
Signature of authorised Signature of the appellant.
representative, if any.
Verification
I, ..................................., the appellant, do hereby declare that what is stated above is true to
the best of my information and belief.
Verified today, the .................... day of ............(year)............
Place ..................
Date ...................
Signature of authorised Signature of the appellant.
n
Notes : (1) The grounds of appeal and the form of verification shall be signed by the appellant in
r.i
accordance with the provisions of Rule 3 of the Customs (Appeals) Rules, 1982.
(2) The form of appeal, including the statement of facts and the grounds of appeal shall be filed
e
in duplicate and shall be accompanied by a copy of the decision or order appealed against.
nc
Form of application to the Commissioner (Appeals) under Section 129-D—
re
(1) An application under sub-section (4) of Section 129D to the Commissioner (Appeals) shall be
made in form No. C.A.-2.
fe
(2) The form of application in Form No. C.A. shall be filed in duplicate and shall be accompanied
.re
by two copies of the decision or order passed by the adjudicating authority (one of which at
least shall be a certified appeal copy) and a copy of the order passed by the Commissioners
of Customs directing such authority to apply to the Commissioners.
w
w
FORM NO. C.A.-2

w
[See Rule 4 of the Customs (Appeals) Rules, 1982]
Form of Application to the Commissioner (Appeals) under Sec. 129D(4) of the Customs Act, 1962
Appeal No. .........................of ..................(year).......................

....................................................................................Applicant
Vs.
.................................................................................Respondent
(1) Designation and address of the application (If the application is not the adjudicating authority, a
copy of the authorisation from the Commissioner of Customs to make the application should be
enclosed).
(2) Name and address of the respondent.
(3) Designation and address of the officer passing the decision or order in respect of which this
application is being made and the date of the decision or order.
(4) Date on which the order under sub-section (2) of Section 129D has been passed by the
Commissioner of Customs.
www.referencer.in
133
(5) Date of the communication of the order referred to in (4) above to the adjudicating authority.
(6) Relief claimed in the application.
Statement of facts
Grounds of appeal
(i)
(ii)
(iii) etc.
Signature of the applicant.
Note : The form of application, including the statement of facts and the grounds of application shall
be filed in duplicate and shall be accompanied by two copies of the decision or order passed by the
adjudicating authority (one of which at least shall be a certified copy) and a copy of the order of the
Commissioner of Customs under sub-section (2) of Section 129D of the Act.
n
r.i
AUTHORISED REPRESENTATIVES
Qualifications for authorised representatives. – For the purposes of section 146 A, an authorised
e
representative shall include a person who has acquired any of the following qualifications, being the
nc
qualifications specified under clause (d) of sub-section (2) of the said section 146a, namely:-
(a) a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or
re
(b) a Cost Accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959); or
fe
(c) a Company Secretary within the meaning of the Company Secretaries Act, 1980 (56 of 1980), who
has obtained a certificate of practice under section 6 of that Act; or
.re
(d) a post-graduate or an Honours degree holder in Commerce or a post-graduate degree or diploma

holder in Business Administration from any recognised University; or
w
(e) a person formerly employed in the Departments of Customs or Central Excise or Narcotics and has
retired or resigned from such employment after having rendered service in any capacity in one or
w
more of the said Departments for not less than ten years in the aggregate.
w
Explanation.—In this rule, “Recognised University” means any of the Universities specified below,
namely:-
I. Indian universities
Any Indian University incorporated under any law for the time being in force in India;
II. Rangoon University
III. English and Welsh Universities
The Universities of Birmingham, Bristol, Cambridge, Durham, Leeds, Liverpool, London
Manchester, Oxford, Reading, Sheffield and Wales;
IV. Scottish Universities
The Universities of Aberdeen, Edinburgh, Glasgow and St. Andrews;
V. Irish Universities
The Universities of Dublin (Trinity college), the Queen’s University, Belfast and the National
University of Dublin;
VI. Pakistan Universities
Any Pakistan University incorporated under any law for the time being in force;
VII. Bangladesh Universities
www.referencer.in
134
Any Bangladesh University incorporated under any law for the time being in force.
Authority under, section 164A(5) (b). -- The Commissioner of Customs having jurisdiction in the
proceedings in which a person who is not a legal practitioner is found guilty of misconduct in connection
with that proceeding under the Act shall be the authority for the purposes of clause (b) of sub-section (5)
of section 146A.
APPEALS TO APPELLATE TRIBUNAL

Section 129A of the Customs Act provides that—
(1) Any person aggrieved by any of the following orders may appeal to the Appellate Tribunal against
such order—
(a) a decision or order passed by the Commissioner of Customs as an adjudicating authority;
(b) an order passed by the Commissioner (Appeals) under section 128A ;
(c) an order passed by the Board or the Appellate Commissioner of Customs under section 128,
as it stood immediately before the appointed day ;
(d) an order passed by the Board or the Commissioner of Customs, either before or after the
appointed day, under section 130, as it stood immediately before that day :
n
Provided that no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not
r.i
have jurisdiction to decide any appeal in respect of any order referred to in clause (b) if such order relates
to,-
(a) any goods imported or exported as baggage;
e
nc
(b) any goods loaded in a conveyance for importation into India, but which are not unloaded at
their place of destination in India; or so much of the quantity of such goods as has not been
re
unloaded at any such destination if goods unloaded at such destination are short of the
quantity required to be unloaded at their destination;
fe
(c) payment of drawback as provided in Chapter X, and the rules made thereunder :
.re
Provided further that the Appellate Tribunal may, in its discretion, refuse to admit an appeal in
respect of an order referred to in clause (b) or clause (c) or clause (d) where-
(i) the value of the goods confiscated without option having been given to the owner of the
w
goods to pay a fine in lieu of confiscation under sec. 125; or

w
(ii) in any disputed case, other than a case where the determination of any question having
w
a relation to the rate of duty of customs or to the value of goods for purposes of
assessment is in issue or is one of the points in issue, the difference in duty involved or
the duty involved ; or
(iii) the amount of fine or penalty determined by such order, does not exceed ten thousand
rupees.
(1A) Every appeal against any order of the nature referred to in the first proviso to sub-section (1),
which is pending immediately before the commencement of section 40 of the Finance Act, 1984, before
the Appellate Tribunal and any matter arising out of or connected with such appeal and which is so
pending shall stand transferred on such commencement to the Central Government and the Central
Government shall deal with such appeal or matter under section 129DD as if such appeal or matter were
an application or a matter arising out of an application made to it under that section.
(2) The Commissioner of Customs may, if he is of opinion that an order passed by the Appellate
Commissioner of Customs under sec. 128, as it stood immediately before the appointed day, or by the
Commissioner (Appeals) under sec. 128A, is not legal or proper, direct the proper officer to appeal on his
behalf to the Appellate Tribunal against such order.
www.referencer.in
135
(3) Every appeal under this section shall be filed within three months from the date on which the order
sought to be appealed against is communicated to the Commissioner of Customs, or as the case may
be, the other party preferring the appeal.
(4) On receipt of notice that an appeal has been preferred under this section, the party against whom the
appeal has been preferred may, notwithstanding that he may not have appealed against such order
or any part thereof, file, within forty-five days of the receipt of the notice, a memorandum of cross-
objections verified in such manner as may be specified by rules made in this behalf against any part
of the order appealed against and such memorandum shall be disposed of by the Appellate Tribunal
as if it were an appeal presented within the time specified in sub-section (3).
(5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections
after the expiry of the relevant period referred to in sub-section (3) or sub-section (4), if it is satisfied
that there was sufficient cause for not presenting it within that period.
(6) An appeal to the Appellate Tribunal shall be in such form and shall be verified in such manner as may
be specified by rules made in this behalf and shall, in the case of an appeal made on or after the 1st
day of June, 1993, irrespective of the date of demand of duty and interest or of levy of penalty in
relation to which the appeal is made, be accompanied by a fee of,--
n
(a) where the amount of duty and interest demanded and penalty levied by any officer of customs in
r.i
the case to which the appeal relates is one lakh rupees or less, two hundred rupees ;
(b) where the amount of duty and interest demanded and penalty levied by any officer of customs in
e
the case to which the appeal relates is more than one lakh rupees, one thousand rupees :
nc
Provided that no such fee shall be payable in the case of an appeal referred to in sub-section (2)
or a memorandum of cross-objections referred to in sub-section (4).
re
Procedure of Appellate Tribunal. Section 129 C of the Customs Act, 1962, prescribes that—
fe
(1) The powers and functions of the Appellate Tribunal may be exercised and discharged by Benches
.re
constituted by the President from amongst the members thereof.

(2) Subject to the provisions contained in sub-section, (4), a Bench shall consist of one judicial member
and one technical member.
w
(3) Omitted.
w
(4) The President or any other member of the Appellate Tribunal authorised in this behalf by the
w
President may, sitting singly, dispose of any case which has been allotted to the Bench of which he
is a member where –
(a) the value of the goods confiscated without option having been given to the owner of the goods to
pay a fine in lieu of confiscation under Sec. 125; or
(b) in any disputed case, other than a case where the determination of any question having a
relation to the rate of duty of duty of customs or to the value of goods for purposes of
assessment is in issue or is one of the points in issue, the difference in duty involved, or the duty
involved ; or
(c) the amount of fine or penalty involved, does not exceed ten lakh rupees.
(5) If the members of a Bench differ in opinion on any point, the point shall be decided according to the
opinion of the majority, if there is a majority; but if the members are equally divided, they shall state
the point or points on which they differ and make a reference to the President who shall either hear
the point or points himself or refer the case for hearing on such point or points by one or more of the
other members of the Appellate Tribunal and such point or points shall be decided according to the
opinion of the majority of these members of the Appellate Tribunal who have heard the case,
including those who first heard it.
www.referencer.in
136
(6) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate its own
procedure and the procedure of the Benches thereof in all matters arising out of the exercise of its
powers or of the discharge of its functions, including the places at which the Benches shall hold their
sittings.
(7) The Appellate Tribunal shall; for the purposes of discharging its functions, have the same powers as
are vested in a Court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in
respect of the following matters, namely :
(a) discovery and inspection;
(b) enforcing the attendance of any person and examining him on oath;
(c) compelling the production of books of account and other documents; and
(d) issuing commissions.
(8) Any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the
meaning of Secs. 193 and 228 and for the purpose of Sec. 196 of the Indian Penal Code (45 of
1860), and the Appellate Tribunal shall be deemed to be a Civil Court for all the purposes of Sec. 195
and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)
n
Form of Appeals, etc., to the Appellate Tribunal.—
r.i
(1) An appeal under sub-section (1) of section 129A to the Appellate Tribunal shall be made in
Form No. C.A.-3.
e
(2) A memorandum of cross-objections to the Appellate Tribunal under sub-section (4) of section
nc
129A shall be made in Form No. C.A.-4.
(3) Where an appeal under sub-section (1) of section 129A or a memorandum of cross-objections
re
under sub-section (4) of that section is made by any person other than the Commissioner of
Customs, the grounds of appeal, the grounds of cross-objections and the forms of verification
fe
as contained in Form Nos. C.A.-3 and C.A.-4, as the case may be, respectively shall be
.re
signed by the person specified in sub-rule (2) of rule 3.

(4) The form of appeal in Form No. C.A.-3 and the form of memorandum of cross-objections in
Form No. C.A.-4 shall be filed in quadruplicate and shall be accompanied by an equal number
w
of copies of the order appealed against (one of which at least shall be a certified copy).
w
w
Form of application to the Appellate Tribunal.—

(1) An application under sub-section (4) of section 129D to the Appellate Tribunal shall be made
in Form No. C.A.-5.
(2) The form of application in Form No. C.A.-5 shall be filed in quadruplicate and shall be
accompanied by an equal number of copies of the decision or order passed by the Commissioner of
Customs (one of which at least shall be a certified copy) and a copy of the order passed by
FORM NO. C.A.-3

[See Rule 6(1) of the Customs (Appeals) Rules, 1982]
Form of Appeal to the Appellate Tribunal under Section 129A(1) of the Customs Act, 1962
In the Customs, Excise and Gold (Control) Appellate Tribunal

Appeal No. ........................ of ...............................
.........................................................................Appellant
Vs.
.......................................................................Respondent
www.referencer.in
137
(1) The designation and address of the authority passing the order appealed against.
(2) The number and date of the order appealed against.
(3) Date of communication of the order appealed against.
(4) State/Union territory and the Commissionerate in which the order/decision of
assessment/penalty/fine was made.
(5) Designation and address of the adjudicating authority in cases where the order appealed against is
an order of the Commissioner (Appeals).
(6) Address to which notices may be sent to the appellant.
(7) Address to which notices may be sent to the respondent.
(8) Whether the decision or order appealed against involves any question having a relation to the rate
of duty or to the value of goods for purposes of assessment; if not, the difference in duty involved
or amount of fine or penalty involved or value of goods involved, as the case may be.
(9) Whether duty or penalty is deposited ; if not, whether any application for dispensing with such
deposit has been made.
(A copy of the Challan under which the deposit is made shall be furnished).
(9A) Whether the appellant wishes to be heard in person.
n
(10) Reliefs claimed in appeal.
Statement of facts
Grounds of appeal
e r.i
nc
(i)
(ii)
re
(iii)
(iv) etc.
fe
Signature of the authorised Signature of the appellant.

.re
Verification
w
I, ................................... , the appellant, do hereby declare that what is stated above is true to the
w
best of my information and belief.

w
Verified today, the ........................... day of ....................19 ............
Signature of the authorised Signature of the appellant.

representative, if any,
Notes : 1. The grounds of appeal and the form of verification shall, if the appeal is made by any person,
other than the Commissioner of Customs, be signed by the appellant in accordance with the provisions of
Rule 3 of the Customs (Appeals) Rules, 1982.
2. The form of appeal including the statement of facts and the grounds of appeal shall be filed in
quadruplicate and shall be accompanied by an equal number of copies of the order appealed against
(one of which at least shall be a certified copy)
3. The form of appeal should be in English (or Hindi) and should set forth, concisely and under district
heads, the grounds of appeal without any argument or narrative and such grounds should be numbered
consecutively .
4. The fee of Rs. 200/- required to be paid under the provisions of the Act shall be paid through a
crossed bank draft drawn in favour of the Assistant Registrar of the Bench of the Tribunal on a branch of
www.referencer.in
138
any Nationalised bank located at the place where the Bench is situated and the demand draft shall be
attached to the form of appeal.
FORM NO. C.A.-4

[See Rule 6(2) of the Customs (Appeals) Rules, 1982]
Form of Memorandum of Cross-objections to the Appellate Tribunal under Section 129A(4) of the
Customs Act, 1962
In the Customs, Excise and Gold (Control) Appellate Tribunal
Cross-Objection No. .....................of .....................19 .........................
In Appeal/Application ............................... of ...................19..............
Vs.
..................................................................Respondent
(1) State/Union territory and the Commissionerate in which the order/decision of assessment/
penalty/ fine was made.
n
(2) Date of receipt of notice of appeal or application filed with the Appellate Tribunal by the
r.i
appellant or, as the case may be, the Commissioner of Customs.
(3) Address to which notices may be sent to the respondent.
(4)
e
Address to which notices may be sent to the appellant/applicant.
nc
(5) Whether the decision or order appealed against involves any question having a relation to
the rate of duty of Customs or to the value of goods for purpose of assessment; if not, the
re
difference in duty involved, or amount of fine or penalty involved or the value of goods
involved, as the case may be.
fe
(6) Reliefs claimed in the memorandum of cross-objections.

.re
Grounds of Cross-Objections
(1)
w
(2)
w
(3)
w
(4) etc.
Signature of the authorised Signature of the respondent.
Verification
I,............................, the respondent, do hereby declare that what is stated above is true to the
best of my information and belief.
Verified to day, the .......................day of ...................19..........

Notes : 1. The grounds of cross-objections and the form of verification shall, if the memorandum is filed
by any person, other than the Commissioner of Customs, be signed by the respondent in accordance with
the provisions of Rule 3 of the Customs (Appeals) Rules, 1982.
www.referencer.in
139
2. The form of memorandum of cross-objections shall be filed in quadruplicate.

3. The form of memorandum of cross-objections should be in English (or in Hindi) and should set
forth, concisely and under distinct heads, the grounds of cross-objections without any argument or
narrative and such grounds should be numbered consecutively.
4. The number and year of appeal/application is allotted by the office of the Appellate Tribunal and
appearing in the notice of appeal/ application received by the respondent is to be filled in by the
respondent .
FORM NO. C.A.-5

[See Rule 7 of the Customs (Appeals) Rules, 1982]
From of Application to the Appellate Tribunal under Section 129D(4) of the Customs Act, 1962
In the Customs, Excise and gold (Control) Appellate Tribunal
Appeal No. .......................................... of .....................................

.............................................................................. Applicant
Vs.
n
......................................................................... Respondent
(1)
e r.i
Designation and address of the applicant (if the applicants is not the adjudicating authority, a
copy of the authorisation from the Commissioner of Customs to make the application should be
nc
enclosed).
(2) Name and address of the respondent .
re
(3) Designation and address of the officer passing the decision or order in respect of which this
application is being made and the date of the decision or order.
fe
(4) State/ Union territory and the Commissionerate in which the decision or order was made.
.re
(5) Date on which order under sub-section (1) of Section 129D has been passed by the Board.
(6) Date of the communication of the order referred to in (3) above, to the adjudicating authority.
(7) Whether the decision or order appealed against involves any question having a relation to the
w
rate of duty of customs or to the value of goods for purposes of assessment; if not, the difference
w
in duty involved, or amount of fine or penalty involved or value of goods involved.

w
(8) Reliefs claimed in the application.
Statement of facts
Grounds of application
(i)
(ii)
(iii) etc.
Signature of the applicant.
Note : The form of application including the statement of facts and the grounds of application shall
be filed in quadruplicate and shall be accompanied by an equal number of copies of the decision or order
of the Commissioner of Customs (one at least of which shall be a certified copy) and a copy of the order
of the Board under sub-section (1) of Section 129D.
www.referencer.in
140
Revision by Central Government.- SECTION 129DD.

(1) The Central Government may, on the application of any person aggrieved by any order
passed under section 128A, where the order is of the nature referred to in the first proviso to sub-section
(1) of section 129A, annual or modify such order.
Explanation. – For the purposes of this sub-section, “order passed under section 128A” includes
an order passed under that section before the commencement of section 40 of the Finance Act, 1984,
against which an appeal has not been preferred before such commencement and could have been, if the
said section had not come into force, preferred after such commencement, to the Appellate Tribunal.
(2) An application under sub-section (1) shall be made within three months from the date of
the communication to the applicant of the order against which the application is being made :
Provided that the Central Government may, if it is satisfied that the applicant was prevented by
Sufficient cause from presenting the application within the aforesaid period of three months, allow it to be
presented within a further period of three months.
(3) An application under sub-section (1) shall be in such form and shall be verified in such
manner as may be specified by rules made in this behalf and shall be accompanied by a fee of two
hundred rupees.
n
(4) The Central Government may, of its own motion, annual or modify any order referred to
r.i
in sub-section (1).
(5) No order enhancing any penalty or fine in lieu of confiscation or confiscating goods of
greater value shall be passed under this section,-
e
nc
(a) in any case in which an order passed under section 128A has enhanced any penalty or fine
in lieu of confiscation or has confiscated goods or greater value; and
re
(b) in any other case, unless the person affected by the proposed order has been given notice
to show cause against it within one year from the date of the order sought to be annulled or
fe
modified.
.re
(6) Where the Central Government is of opinion that any duty of customs has not been levied
or has been short-levied, no order levying or enhancing the duty shall be made under this section unless
the person affected by the proposed order is given notice to show cause against it within the time limit
w
specified in section 2
w
w
REVISION BY CENTRAL GOVERNMENT

Form of revision application to the Central Government. –
1. (1) A revision application under sub-section (1) of section 129DD to the Central Government shall be
in Form No. C.A. –8.
(2) The grounds of revision application and the form of verification, as contained in Form C.A.-8, shall
be signed by the person specified in sub-rule (2) of rule 3.
2. Where the revision application is signed by the authorised representative of the applicant, the
document authorising such representative to sign and appear on behalf of the applicant shall be
appended to such revision application.
3. The revision application in Form No. C.A.-8 shall be filed in duplicate and shall be accompanied by an
equal number of copies of the following documents, namely :-
(i) order passed by the Commissioner of Customs (Appeals) under section 128A; and
(ii) decision or order passed by the Customs Officer which was the subject-matter of the
order referred to in clause (i).
www.referencer.in
141
Procedure for filing revision application.- (1) The revision application in Form C.A.-8 shall be
presented in person to the Under Secretary, Revision Applications, Ministry of Finance, Department of
Revenue, Central Secretariat, New Delhi-1, or sent by registered post addressed to said Under Secretary.
(2) The revision application sent by registered post under sub-rule (1), shall be deemed to have been
submitted on the date on which it is received in the office of the said Under Secretary.
FORM NO. C.A.-8

[See Rules 8A and 8B of the Customs (Appeals) Rules, 1982]
Form of Revision Application to the Central Government under Section 129DD of the Customs Act, 1962
1. Revision Application No. ............................. of .............................

2. Name and address of the applicant
3. Designation and address of the authority passing the order against which the revision application is
filed
4. The number and date of the order
n
5. Date of communication of the order.
r.i
6. Designation and address of the authority against which the order has been passed by the
Commissioner (Appeals)
7. Address to which notices/communications may be sent to the Applicant
e
nc
8. Whether duty or penalty, if any, has been deposited (a copy / extract of the challan / account current,
as the case may be, under which the deposit is made, shall be furnished)
re
8A. Whether the appellant wishes to be heard in person

9. Reliefs claimed in application
fe
(i)
.re
(ii)
(iii) etc.
Statement of facts
w
Grounds of appeal
w
w
Signature of the authorised Signature of the Applicant

Verification
I, .........................., the applicant, do hereby declare that what is stated above is true to the best of
my information and belief.
Verified today, the ..................... day of ....................19................
Signature of the authorised Signature of the Applicant.

Notes : (1) The grounds of application and the form of verification shall be signed by the applicant in
accordance with the provisions of sub-rule (2) of Rule 8A.
(2) The application, including the statement of facts and the grounds of application, shall be filed in
duplicate and shall be accompanied by an equal number of copies of the order against which the
www.referencer.in
142
application is filed and also the decision / order of the authority against which Commissioner of
Customs (Appeals) passed the order.
(3) The form of application shall be in English (or Hindi) and shall set forth, concisely and under district
heads, the grounds of application without any argument or narrative and such grounds should be
numbered consecutively.
(4) The fee of rupees two hundred required to be paid under the provisions of the Act shall be paid
under T. R. 6 challan and the duplicate copy of the T.R. 6 challan shall be filed along with the
application for revision.
(5) Where the application is signed by the authorised representative of the applicant, the document
authorising the representative to sign and appear on behalf of the applicant shall be appended to the
application.
[ M.F., (D.R.) Notfn. No. 212-Cus., dtd. 10-9-82 as amended by Notfn. No. 15/85-Cus., dtd. 30-1-85 ]
Statement of case to High Court. – SECTION 130
n
(1) The Commissioner of Customs or the other party may, within sixty days of the date upon
r.i
which he is served with notice of an order under section 129B (not being an order relating, among other
things, to the determination of any question having a relation to the rate of duty of customs or to the value
e
of goods for purposes of assessment), by application in such form as may be specified by rules made in
nc
this behalf, accompanied, where the application is made by the other party, by a fee of two hundred
rupees, require the Appellate Tribunal to refer to the High Court any question of law arising out of such
re
order and, subject to the other provision contained in this section, the Appellate Tribunal shall, within one
hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to
fe
the High Court :

.re
Provided that the Appellate Tribunal may, if it is satisfied that the application was prevented
by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be
presented within a further period not exceeding thirty days.
w
w
From of application of the High Court.-

w
(1) An application under sub-section (1) of section 130A requiring the High Court to direct the
Appellate Tribunal to refer to the High Court any question of law shall be made in From No. C.A.-6 and
such application shall be filed in quadruplicate.
(2) A memorandum of cross-objections under sub-section (3) of section 130A to the High Court shall be
made in Form No. C.A.-7 and such memorandum shall be filed in quadruplicate.
(3) Where an application under sub-section (1) of section 130A or a memorandum of cross-
objections under sub-section (3) of that section is made by any person other than the Commissioner of
Customs, the application, the memorandum or form of verification, as the case may be, contained in Form
NO.-6 or form No. C.A.-7 shall be signed by the person specified in sub-rule (2) of rule 3.
For Form No.-6 and Form NO. C.A.-7 appended to the said rules the following Forms shall
respectively be substituted, namely :-
www.referencer.in
143
FORM NO. C.A.-6

[See rule 8 (1)]
Form of an Application to the High Court under section 130A of the Custom Act, 1962
In the High Court of Judicature at

In the matter of Appeal No. (Name of the appellant)
Application No.--------------------------------of -----------------------------19----------
(To be filled in by the Office)
------------------------------------------------------------------------------------------------Applicant
Vs.
----------------------------------------------------------------------------------------------Respondent
(1) State or Union Territory and the Commissionerate from which the application is filled :
(2) Number of the appeal which gives rise to the application :
(3) Address to which notices may be sent to the applicant :
(4) Address to which notices may be sent to the respondent :
n
(5) The appeal noted above was decided by the ----------------------------------------------------- Bench of the
r.i
Appellate Tribunal on :
(6) The notice of the order under Section 129B of the Customs Act, 1962 was served on the applicant
on :
e
nc
(7) The facts which are admitted and/or found by the Appellate Tribunal and which are necessary for
drawing up a statement of the case, are stated in the enclosure for ready reference :
re
(8) The following questions of law arise out of the order of the Appellate Tribunal :
1.
fe
2.
.re
3. etc.
(9) The applicant, therefore, requires under sub-section (1) of Section 130A of the Customs Act, 1962
that High Court directs the Appellate Tribunal to refer to the High Court the question(s) of law
w
referred to in paragraph 8 above :

w
(10)The documents or copies thereof as specified below (the translation in English of the documents,
w
where necessary) is annexed) with the statement of the case.
Signature of the authorised Signature of the applicant.

Verification
I, ------------------------------------------------------- the applicant, do hereby declare that what is stated

above is true to the best of my information and belief.
Verified today, the ------------------------------- day of ------------------- 19 -------------------
Signature of the authorised Signature of the applicant.

www.referencer.in
144
Notes :
(1) The application and the form of verification shall, if the application is made by any person, other than
the Commissioner of Customs, be signed by the applicant in accordance with the provisions of Rule 3
of the Customs (Appeal) Rules, 1982.
(2) The application shall be filed in quadruplicate.
(3) The fee of Rs. 200/- required to be paid under the provisions of the Act shall be through a crossed
bank draft drawn in flavour of the Registrar of the High Court on a branch of any nationalised bank
located at the place where the High Court is situated and the demand draft shall be attached to the
form of application.
FORM NO. C.A.-7

[See rule 8 (2)]
Form of Memorandum of Cross-Objections under section 130A (3) of the Customs Act, 1962 in the
matter of an application before the High Court under section 130A(1) of the said Act
In the High Court of Judicature at
Memorandum of Cross Objections No.---------------------------------- of -------------------- 19--------------
n
(To be filled in by the Office)
r.i
In Application No. ----------------------------------------------of-------------------------------19-----------------
---------------------------------------------------------------------------------------------------------Applicant
Vs.
e
nc
-------------------------------------------------------------------------------------------------------Respondent
(1) State/Union territory and the Commissionerate from which the memorandum of cross-objection is
re
filled :
(2) Date of receipt of notice of application filed with the High Court by the respondent :
fe
(3) Address to which notices may be sent to the respondent :

.re
(4) Address to which notices may be sent to the applicant :

(5) The facts which are admitted and/or found by the Appellate Tribunal and which are necessary
for drawing up a statement of the case, are stated in the enclosure for ready reference :
w
(6) The following questions of law arise out of the order of the Appellate Tribunal :
w
1.
w
2.
3. etc.
(7) The respondent, therefore, requires under sub-section (1) of Section 130A of the Customs Act, 1962
that the Tribunal may be directed to furnish a statement of the case on the questions of law referred
to in paragraph 6 above.
(8) That the documents or copies thereof as specified below (the translation in English of the documents
where necessary) is annexed with the statement of the case.

Verification
I, ---------------------------------------------------------------------------- the respondent, do hereby declare
that what is stated above is true to the best of my information and belief.
Verified today, the ------------------------------ day of -------------------------19-----------------
www.referencer.in
145
Note :
(1) The memorandum of cross-objection and the form of verification shall, if the memorandum is filed by
any person, other than the Commissioner of Customs, be signed in accordance with the provisions of
Rule 3 of the Customs (Appeal) Rules, 1982.
(2) The memorandum of cross-objection shall be filed in quadruplicate.
[Notification No. 62/99-Cus. (N.T.), dated 17-11-1999]
Difference between Revision and Appeal

As to the difference in scope between appellate and the revisional proceedings, the Supreme
Court observed in State of kerala Vs K M C Abdulla & Co – Air 1965 SC 1585 as follows:
“There is an essential distinction between an appeal and a revision. The distinction is based on
differences implicit in the said two expressions. An appeal is a continuation of the proceedings; in effect
the entire proceedings are before the appellate authority and it has power to review the evidence subject
to the statutory limitations prescribed. But in the case of a revision, whatever powers the revisional
authority may or may not have, it has not the power to review the evidence unless the statute expressly
confers on it that power. That limitation is implicit in the concept of revision.”
n
r.i
The kerala High Court observed on this matter in Govt. of India and Others Vs A S Bava – 1980
(6) ELT 625 thus:
e
“No doubt, as pointed out by this court in Boraswamy Chettiar V. Nhandamandhas Kunhiraman
nc
and others – 1069 KLJ 227 the jurisdiction exercised by the Government of India under Sec.36(2) being
revisional in character, it is not expected to treat the proceedings as an appeal and substitute its own
re
conclusions on questions of fact in the place of those arrived at by the subordinate authorities. But the
revisional authority must, all the same, examine the legality, propriety and correctness of the findings
fe
entered by the subordinate authorities and in case it is found that a finding of fact can legitimately be
.re
characterised as ‘improper’ in the sense of its being wholly unreasonable or perverse, it is the duty of the
revisional authority to interfere with such a finding and render justice between the parties”.
w
Thus, the essential distinction between an appeal and a revision lies in the scope of the powers of
w
the authority exercising the revisional powers. An appellate authority can reappraise evidence and come
w
to its own conclusion on factual issues whereas a revisional authority has a limited power only in this
regard. It cannot upset the finding of the lower authority on questions of fact, unless it is of opinion that
the finding is either perverse or based on no evidence. The mere fact that the revisional authority feels
that an alternative finding is also equally permissible would not enable it to upset the finding of the lower
authority on a question of fact.
REVISION
There are three types of exercise of revisionary powers provided for in the Customs Act, 1962.
They are:
1. Revision petitions to the Central Govt. by the aggrieved assesses;
2. Suo moto exercise of revisionarty powers by the Central Govt.; and
3. Power of the Board or the Commissioner to take up for review an order passed by the appropriate
lower adjudicating authority and then, on being satisfied that the said order is not legal or proper,
direct a designated subordinate to make an application to the Tribunal or the Commissioner
(Appeals) for determination of the points (arising out of the order under consideration) that may
be specified in the order of the Board or the Commissioner.
www.referencer.in
146
1.Revision petitions to the Central Govt. by the aggrieved assesses

a) (i) The relevant provision in this category of cases is Section 129DD of the Customs Act, 1962,
which stipulates that the Central Govt., may, on the application of any person aggrieved any order
passed under Section 128a, where the order is of the nature referred to in the first provisio to sub
– station (1) of Section 129a, annul or modifies such order.
(ii) An application under sub – section (1) shall be made within 3 months from the date of
communication to the applicant of the order against which the application is being made:
Provided that the Central Govt. may, if it is satisfied that applicant was prevented by sufficient
cause from presenting the application within the aforesaid period of 3 months, allow it to be
presented within a further period of 3 months.
(iii) Normally the aggrieved party would be entitled to prefer an appeal against an order of the
Commissioner (Appeals). But the above provisions have carved out certain categories of such
orders for a remedy by way of revision. The categories so enumerated are:
Any goods imported or exported as baggage;
Any goods loaded in a conveyance for importation into India, but which are not unloaded at their
place of destination in India; or so much of the quantity of such goods as has not been unloaded
n
at any such destination if goods unloaded at such destination are short of the quantity required to
r.i
be unloaded at such destination;
Payment of drawback as provided in Chapter X and the rules made thereunder.
Limitation & Procedure:
e
nc
The Revision Petition by the aggrieved party under the Customs Act, 1962 has to be filed within 3
months from the date the impugned order was communicated to the party. There is a further provision for
re
condonation or delay, but it must be noted that such condonation can extend to a further period of 3
months only and not beyond. The Revision Petition is to be preferred in Form CA8. A fee of Rs 200/- is
fe
to accompany the Revision Petition. The Revision Petition has to be filed in duplicate accompanied by an
.re
equal number of copies of the impugned order as well as the order of the original authority. If an
authorised representative signs the petition, the authority executed in his favour is also to be enclosed.
The petition may be filed in person or sent by Regd. Post. If sent by post, the date of presentation shall
w
be deemed to the date on which the petition is received by the designated authority. The above
w
provisions are in terms of Rule 8A & 8B of Customs (Appeals) Rule, 1982. It is worthwhile to mention that
w
none of the provisions contains a specific provision for grant of a personal hearing to the Revision
Petitioner before the petition is disposed of. Column 8 – A of CA8 required the petitioner to state whether
the petitioner wishes to be heard in person. Hence, whenever a personal hearing is felt necessary, it
should be ensured that a suitable request is entered under the above column. Otherwise, it is quite likely
that the petition would be disposed of without the personal hearing and it may not be possible to make a
complaint of this in any subsequent step such as Writ Petition, etc.
2. Suo moto exercise of revisionary powers by the Central Govt.

a) Section 129DD(i) of the Customs Act, 1962, which stipulates that the Central Govt., may, on the
application of any person aggrieved any order passed under Section 128A, Where the order is of the
nature referred to in the first proviso to sub – station (1) of Section 129A, annual or modifies such order.
As per para 4 of Section 129DD, the Central Govt. may, of its own motion, annual or modify any
order referred in Sub – section (i). Thus, the said section of the Customs Act, 1962, enable the Central
Govt. to suo moto pass order annulling or modifying an order of the Commissioner (Appeals) referred to
in sub – section (1) of the said section. Thus, this power is also to be exercised only with reference to
Section 129A of the Customs Act, 1962.
www.referencer.in
147
b) Period of limitation for the exercise of such power

Sub – section (5) and (6) contain the provisions regarding the period of limitation for the issue of
suo moto revision notices. Sub – section 5(a) of Section 129DD reads that in cases where, under the
order of the Commissioner (Appeals), the penalty or fine in lieu of confiscation had been enhanced or
goods of greater value than under the order of the lower authority had been ordered to be confiscated, no
further enhancement of penalty or fine in lieu of confiscation can be ordered under the order in the
revision proceedings nor could goods of greater value be ordered to be confiscated. Sub – section 5(b)
then proceeds to lay down that in cases not covered by sub – section 5(a) no order for enhancement of
penalty or fine in lieu of confiscation or for confiscation of goods of greater value can be passed, unless
the person affected by the proposed order had been given notice within one year from the date of the
order sought to be annulled or modified. It should be noted that the starting point of limitation is the date
of the order (and not the date of its despatch) and that within the prescribed period it must be given (i.e.)
served on the party in any of the prescribed methods.
Sub –section (6) of the Section 129DD stipulates for the period of limitation in respect of cases
wherein the Central Govt. is of the view that under the impugned order any Customs duty has not been
levied or has been short – levied. The said sub – section reads that under the proposed order no order
n
levying or enhancing the duty shall be made unless the notice to show cause against such a proposal had
r.i
been given within the time limit specified in Sec. 11A or Sec. 28 of the appropriate Act.
c) Scope of the revisional power suo moto
e
Sub – section (4) of the Section 129DD reads that the Central Govt. may, of its own motion,
nc
annual or modify any order referred to in sub – section (1). But it has been noted that sub – section 5(a)
contains a restriction of this power. It reads that if under the order of the Commissioner (Appeals) the
re
penalty or fine in lieu of confiscation ordered by the lower authority had been enhanced, or confiscation
had been ordered of goods of greater value than under the order of the lower authority, then no order
fe
enhancing the penalty or fine in lieu of confiscation, or confiscating goods of greater value, can be made
.re
in the order to be passed in pursuance of the suo moto notice. Subject to this restriction (and also the
rules of limitation noted above) the Central Govt. is free to pass an order modifying or annulling the order
of the Commissioner (Appeals).
w
3. Power of the Board or the Commissioner to take up for review an order passed by the
w
appropriate lower adjudicating authority

w
a) Section 129D of the Customs Act, 1962 stipulates that the Board may, of its own motion, call or
and examine the record of any proceeding in which a Commissioner of Customs, as an adjudicating
authority, has passed any decision or order under this act for the purpose of satisfying itself as to the
legality or propriety of any such decision or order and may, by order, direct such Commissioner to apply
to the Appellate Tribunal [or, as the case may be, the Customs and Excise Revenues Appellate Tribunal
established under Sec. 3 of the Customs and Excise Revenues Appellate Tribunal Act, 1986] for the
determination of such points arising out of the decision or order as may be specified by the Board in its
order. Similarly, sub – section (2) of the above section provides for action on the part of Commissioner
with reference to any proceeding in which adjudicating authority subordinate to the Commissioner had
passed any decision or order. In such cases, the application is to be directed to be made to the
Commissioner (Appeals).
b) Limitation
Sub – section (3) of Section 129D of the Customs Act, 1962 provides that no order under sub –
section (1) and (2) shall be made after the expiry of one year from the date of the order or decision of the
adjudicating authority. A further period of limitation is provided in sub – section (4) to the effect that the
application to the Appellate Tribunal or the Commissioner (Appeals) is to be made by the adjudicating
www.referencer.in
148
authority within 3 months of the communication of the order under sub – section (1) or (2) to the
adjudicating authority. It should be noted that there is no provision for condonation of any delay in the
making of either the order under sub – section (1) or the application under sub – section (4).
Under Section 129D(1) & (2) of the Customs Act, 1962, reads that Board or the Commissioner
may authorise the designated officer to apply to the Tribunal or the Commissioner (Appeals), as the case
may be, for the determination of such point or points as may be specified in the order of the Board or the
Commissioner. It would, therefore, be clear that in making this application under sub – section (4)
thereafter the designated officer would have to confine himself to those specified points only and cannot
raise other points of his own.
CONDONATION OF DELAY IN FILING THE APPEAL
The Central Excises and Salt Act as well as the Customs Act contain provisions for condonation
of delay in the filing of the appeal, reference petition etc. and also, in some cases, the period for which
delay could be condoned. It has been earlier seen that the provisions of the Limitation Act will not be
attracted to the proceedings under these Acts before the authorities constituted under these Acts.
Generally the provisions state that the delay may be condoned if the appellant is able to establish that he
was prevented by sufficient cause from filing the appeal within time. As to what would constitute sufficient
n
cause, no definite propositions could be laid down since it would be essentially a question of fact in eac
r.i
case. There are numerous decisions on this question, each depending on its own facts. As held by the
Madras High Court in 1988 (37) E.L.T. 338 (supra) the appellate authority ha no inherent power to
condone delay in the presentation of the appeal.
e
nc
The general rule to be followed in condonation of delay would be that the delay should be
condoned if it had occurred in spite of the appellant exercising normal diligence and the delay was not
re
due to any indifference on his part in taking the necessary steps for filing the appeal within time. The
Supreme Court in the case of Commissioner, Land Acquisition, Anantnag v. Mst. Katiji and Ors. [ 1987
fe
(28) E.L.T. 185 ] considered this phrase summarised its conclusions as follows:
.re
1. Ordinarily a litigant does not stand to benefit by lodging an appeal late.

2. Refusal to condone delay may result in a meritorious matter being thrown out at the very
threshold and cause of justice being defeated. As against this when delay is condoned the
w
highest that can happen is that a cause would be decided on merits after hearing the parties.
w
3. “Every day’s delay must be explained” does not mean that a pedantic approach should be
w
made. Why not every hour’s delay, every second’s delay? The doctrine must be applied in a
rational commonsense pragmatic manner.
4. When substantial justice and technical considerations are pitted against each other cause of
substantial justice deserves to be preferred, for the other side cannot claim to have vested
rights in injustice being done because of a non deliberate delay.
5. There is no presumption that delay is occasioned deliberately, or on account of culpable
negligence or on account of mala fides. A litigant does not stand to benefit by resorting to
delay. In fact he runs a serious risk.
6. It must be grasped that judiciary is respected not on account of its power to legalize injustice
on technical grounds but because it is capable of removing injustice and is expected to do
so”.
What should therefore arise for consideration in such applications for condonation of delay would
be whether the applicant is shown to have been deliberately indifferent or supinely indifferent of his rights
and obligations under the Act or has been guilty of some mala fides. If non of these is established then
the rule should be to condone the delay.
www.referencer.in
149
PRE-DEPOSIT OF DUTY AND PENALTY AND WAIVER THERE OF

Section 35f of the Central Excises and Salt Act as also Section 129E of the Customs Act require
that in connection with appeals in which the goods are not in the custody of the Central Excise Officer of
the Customs Authorities, the duty demanded thereon under the impugned order, as well as the penalty
imposed (in all cases), shall have to be deposited with the adjudicating officer pending the appeal. That
means that without such a deposit the appeal shall not be heard by the appellate authority. The sections
further contain a proviso that in proper cases where the appellate authority is satisfied that the
requirement of such a deposit would cause undue hardship to the appellant, the appellate authority may
dispense with such deposit subject to such conditions as may be imposed to safeguard the interests of
the revenue. When it was contended before the Supreme Court that dismissal of the appeal cannot be
ordered as a consequence of the failure to deposit, as required under Section 129 (of the Customs Act as
it then stood), it was observed by the Supreme Court in Navin Chhotelal v. Central Board of Excise and
Customs - 1981 (8) E.L.T. 679 :
“No doubt Section 129 does not expressly provide for the rejection of the appeal for non-
compliance with the requirement of deposit of duty and penalty; but when sub-section (1) of Section 129
makes it obligatory on an appellant to deposit the duty or penalty pending the appeal and if a party does
n
not comply either with the main sub-section, or any order that may be passed under the proviso, the
r.i
appellate authority is fully competent to reject the appeal for non-compliance with the provisions of
Section 129 (1). That is exactly what the first respondent has done in this case. Accepting the contention
e
of Mr. Trivedi will mean that the appeal will have to be kept on file forever, even when the requirement of
nc
Section 129 (1) has not been complied with. Retention of such an appeal on file will serve no purpose
whatsoever because unless Section 129 (1) is complied with, the appellate authority connot proceed to
re
hear the appeal on merits. Therefore the logical consequence of failure to comply with Section 129 (1) is
the rejection of the appeal on that ground.”
fe
Section 129E. Deposit, pending appeal, of [duty and interest] demanded or penalty levied
.re
Where in any appeal under this Chapter, the decision or order appealed against relates to any
[duty and interest] demanded in respect of goods which are not under the control of the customs
authorities or any penalty levied under this Act, the person desirous of appealing against such decision or
w
order shall, pending the appeal, deposit with the proper officer the [duty and interest] demanded or the
w
penalty levied:
w
Provided that where in any particular case, the [Commissioner (Appeals) or the Appellate
Tribunal is of opinion that the deposit of [duty and interest] demanded or penalty levied would cause
undue hardship to such person, the [Commissioner (Appeals)] or, as the case may be, the Appellate
Tribunal may dispense with such deposit subject to such conditions as he or it may deem fit to impose so
as to safeguard the interests of revenue.
Provisions for Appeal, Revisions & Reference at a Glance
appeal memo
Provision of
Form to be
Enclosures
orders by
Period of
Copies of
limitation
Against
used
Fees
law
To
(1) (2) (3) (4) (5) (6) (7) (8)

APPEALS
1. Any Officer Commis Section 128 C.A.I. Three months NIL Two Copy of order
lower in rank sioner of Customs from date of appealed
www.referencer.in
150
to Commi- (Appeal Act, 1962 communication against

ssioner s) for a further
period of three
months
2. Commissi- CEGAT Sec. 129A C.A.3 Three months Rs. 200 if Five 1. Five
oner (1), 129C(3) from date of duty copies of
Customs Act. communication demand / order
Rule 6 of of order with penalty is appealed
Customs condonation for Rs.- against of
(Appeal) a further period 1,00,000 which one
Rules of three months or less; should be a
Rs. 1000 certified copy
if duty 2.Copy of
demand / authorisation
penalty is if appeal is by
more the Comm-
n
than Rs. issioner
r.i
1,00,000
3. Commiss- CEGAT Sec. 129A C.A.3 Three months Rs. 200 if Five 1. Five
ioner (A) (1), 129C(3)
e
from date of duty copies of
nc
Customs Act communication demand/ order appeal-
Rule 6 of of order with penalty is ed against of
re
Customs condonation for Rs.1lakh which one

(Appeal) a further period or less ; should be a
fe
Rules of three months Rs. 1000 certified copy

.re
if duty 2.Copy of
demand / authorisation
penalty is if appeal is by
w
more to the Comm-

w
Rs.1lakh issioner.
w
4. Cross- Concern Sec. 129A (4) CA 4 Forty five days NIL Five .............
objections in ed Customs Act, from date of
items 2 & 3 Bench & Rule 6 of order or
above before Customs communication
which (Appeal) thereof
Appeal Rules whichever is
is later
pending
5. Order of Suprem Sec. 130E(b) NIL Sixty days from Accordin- g to Or. XX-A &
CEGAT e Court Customs Act, date of order or Or. XX-B of the
relating to rate 1962 communication Supreme Cou -rt Rules.
of duty or thereof
valuation whichever is
later
6. By a High Suprem Section 130 NIL Sixty days from Accordin -g to Or. XX-A &
www.referencer.in
151
Court under e Court E (a) of date of order or Or. XX-B of the

Section 130 Customs Act communication Supreme Cou -rt Rules
Customs Act. thereof
REFERENCE
1. Order of CEGAT Sec. 130 C.A.6 60 days of Rs.200. Thre …………….
CEGAT not Customs Act . service of e
relating to rate Rule 8 of notice of order
of duty or Customs of CEGAT
valuation (App) Rules
2.Cross- CEGAT Sec. 130(2) C.A.7 45 days of rec- Nil Thre …………….
objections in Customs Act . eipt of notice of e
above Rule 8 of reference
Cus. (Appeal) application
Rules
3.Order of HIGH Sec. 130 (3) NIL 6 months of ............ …… ................
CEGAT COURT Customs Act date of service
n
dismissing of order of
r.i
reference CEGAT
petition
e
nc
REVISION
1. Commissio- CENTR- Sec. 129DD C.A.8 Three months .............. Two Two copies
re
ner (Appeal) in AL Customs Act from date of each of order

cases covered GOVT. R. 8A of communication passed by (a)
fe
st
by 1 proviso Customs of order of Commissione
.re
to Sec.129A of (Appeal) Commissioner r (App) (b)

Customs Act Rules (Appeals) Lower
REVIEW authority
w
a) Authority Commi- Sec .129D(2) C.A.2 Application to ............. Two 1. 2 copies of

w
subordinate to ssioner Customs Act Commissioner order of lower

w
Commissioner (Appeal) Rule 4 of (Appeals) to be authority one

Customs made within 3 should be a
(Appeals) months of date certified copy
Rules of communica- 2.Copy of
tion of order of order of Co-
Commissioner mmissioner.
b) Commiss- CEGAT Section 129D C.A.5 Application to ............ Four 1.Four copies
ioner as (1) Customs CEGAT to be of order of
adjudicating Act. made within Commr. of
authority Rule 7 of three months of which one
Customs date of should be
(Appeals) communication certified copy
Rules or order of 2.Copy of
Board. order of the
Board.
www.referencer.in
CHAPTER - ELEVEN
ARREST AND PROSECUTION
INTRODUCTION
Under Section 104 of the Customs Act, 1962, if an officer of Customs, empowered in this behalf
by an order of Commissioner of Customs & has reason to believe that a person has been guilty of an
offence punishable under Section 135 of the Act, he can arrest the said person. Also under Section 42 of
the NDPS Act, 1985, officers of Customs, as is empowered in this behalf by general or special order by
the Central Govt., can arrest any person whom he has reason to believe to have committed any offence
punishable under Chapter IV of the NDPS Act, 1988. S.O. 822(E) dt. 14.11.85 empowering Customs
officers (of and above rank of Inspector) to exercise the powers and perform the duties specified in Sec.
42 within the area of their jurisdiction is reproduced below :
S.O. 822 (E) : In exercise of the powers conferred by sub-section (1) of section 42 and section
67 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the Central Government
hereby empowers the officers of and above the rank of Sub-Inspector in the department of Narcotics and
of and above the rank of Inspector in the departments of Central Excise, Customs and Revenue
n
Intelligence and in Central Economic Intelligence Bureau to exercise the powers and perform the duties
r.i
specified in section 42 within the area of their respective jurisdiction and also authorise the said officers to
exercise the powers conferred upon them under section 67.”
e
If the person is arrested, he should be informed about the grounds of arrest.
nc
Next, without any delay he should be produced before a Magistrate. The person arrested should
not be detained for more than 24 hours, exclusive of the time necessary for the journey from the place of
re
arrest to the Magistrate’s Court.

Section 46 of the Code of Criminal Procedure lays down the procedure for effecting arrest which
fe
is as follows :
.re
(1) In making an arrest, the Police Officer or other person making the same shall actually touch or
confine the body of the person to be arrested, unless there be a submission to the custody by word or
action.
w
(2) If such person forcibly resists the endeavour to arrest him, or attempts to evade the arrest, such
w
police officer or other person may use all means necessary to effect that arrest.
w
(3) Nothing in this section gives a right to cause death of a person who is not accused of an offence
punishable with death or with imprisonment for life.
In addition to Section 46 of the Cr. P. C., the officers should also study the provisions of Section
41, 49, 50, 51 and 56 of the Criminal Procedure Code.
As discussed above, the officer must have reason to believe that a person has been guilty of an
offence punishable under Section 135, otherwise the person cannot be arrested.
In this context, before going in detail regarding arrest, it is necessary to know the provisions of the
Act under which the offences are triable by Courts.
Chapter XVI of the Customs Act deals with offences and prosecution. Offences under Section
132 to 136 triable by Courts. By virtue of Sec. 137 of the Act, no Court can take cognizance of any
offence under Section 132 to 136 except with the previous sanction of the Commissioner of Customs or
of Central Govt. in the case on a complaint filed by an officer of Customs not lower in rank than Asstt.
Commissioner of Customs. The Act provides inter-alia two types of action i.e.
(1) Action-in-rem i.e. action against the goods (2) Proceedings in personem, a criminal prosecution.
Both the proceedings are independent of each other. The Ministry from time to time issues and
reviews guidelines on launching of pro-section/arrests.
www.referencer.in
153
PROSECUTION CELL IN CUSTOM HOUSES

In order to have proper accountability the following procedures shall be followed in the
functioning of Prosecution Cell.
1. Where a decision has been taken to prosecute certain offenders under the provisions of Customs
Act, 1962 (as amended) the concerned seizing Unit, after enlisting all the relevant documents including
statements, panchanamas, receipts, bills, vouchers etc. with due verification and certification of
authenticity shall forward the concerned file duly indicating the number of pages on noting /
correspondence sides to Prosecution Cell and obtain receipt to that effect for placing the same on the
adjudication file. All such documents shall be the primary documents i.e. originals of the documents
which shall be placed in a prosecution file called part II file. Where the seizing unit (particularly Zonal
Office, D.R.I.) prefer to withhold the original documents till the completion of prosecution case, they shall
take entire responsibility of deputing their officers to Court to follow the day to day proceedings and to
assist, if necessary, the Officer deputed by the Prosecution Cell in this regard.
SUPERINTENDENT (P) /OFFICE ADMINISTRATION:

2. The Supdt., Office Administration, Prosecution Cell shall acknowledge the receipt of prosecution
n
file after due verification of the contents of file by the concerned Supdt. He shall preserve the original
r.i
documents liable to be tendered in the Court during prosecution proceedings separately in his safe
custody and keep duly certified zerox copies in the Court file for day to day functioning. The court file
e
shall be marked to the respective Supdt. (court matters) for further action.
nc
3. Supdt. Office Admn. in consultation with Supdt. Court Co-ordination shall further allocate the
work to panel counsel in such a manner that the prosecution cases are evenly distributed among all
re
available Counsels, except in cases where they; have expressed their inability for taking up any court
matter. He shall process the P.C. Bills after due verification of their authenticity. Besides assessment of
fe
work performance in the court by the panel counsels shall be taken into account while allocating the Court
.re
work to them and such assessment of performance shall be reduced in writing and be brought to the
notice of A.C./Prosecution for proper appreciation and for contemplating any action in this regard.
4. Supdt., Office Administration, shall have to attend general correspondence, and parliament
w
questions, which are based on factual information generated from Prosecution Cell or by collecting from
w
other Section of this Preventive Commissionerate. Primarily on completion of the last working day of
w
each month, total monthly figures shall be duly certified by the Supdt. Office Administration. Sources for
compiling statements and office copies of all the statements shall be noted in the file by the concerned
staff under the supervision of the Supdt./office Administration. All matters relating to registers and
statements thereto shall properly be co-ordinated between Preventive/Ministerial staff concerned in this
regard under the supervision of Supdt. Of Customs/Office Administration, Prosecution Cell and Deputy
Office Supdt. Ministerial staff respectively. Where writs, have been filed by private parties against Union
of India/Preventive Commissionerate on the issues arising out of any actions of particular
Section/Department of Preventive Commissionerate, such individual Section/Department, as the case
may be shall, in co-ordination with Prosecution Cell, deal/attend/assist during the progression of such
Court proceedings till the proceedings reach to its logical conclusions. All the developments of such
proceedings, from time to time shall be reduced in writing and be brought to the notice of Asstt.
Commissioner/Prosecution.
SUPERINTENDENT (P)/COURT CO-ORDINATION:
5. The Supdt./Court Co-ordination shall keep liaison with the Counsels, Law Ministry, witnesses and
all concerned departments and shall arrange meetings between them whenever needed. He shall be
www.referencer.in
154
looking after issue of notices, summons etc. He shall be assisted by I.Os. posted along with him from
time to time and shall also look after general administration.
SUPERINTENDENT (P)/COURT MATTERS:

6. As soon as Prosecution file is received by the concerned Supdt., he shall ensure that :
(i) a list (index) of all the documents viz. panchanama, statements, Arrest Memo and other
documents has been prepared and placed in the file by the Seizing Unit;
(ii) that all the original documents including purity and disposal certificates required are in
Prosecution file;
(iii) the copy of the remand application with the orders passed by the Magistrate is placed in the file;
(iv) if the accused remanded is already released on bail, full gist of the bail order mentioning bail
amount, surety, etc. and other conditions shall be clearly mentioned in the noting side and also next date
of remand. Whenever an accused is released on bail by the Court with a direction to attend the office
daily or on certain days for a specified period, such accused shall directly report to the Investigating Unit.
The Supdt. Of the concerned Investigating Unit shall also take necessary action and maintain an
attendance register. In case the accused fails to report in terms of the order of the Court, the matter shall
n
be immediately; reported to the Supdt. Prosecution Cell, who shall take action to get the bail of the
r.i
accused cancelled for non-compliance of the court order. The Supdt./Remand Officer shall also put up a
detailed note regarding the extension of remand from time to time in noting side of Prosecution file.
(v)
e
Entry is made in the Remand register when the accused is remanded to judicial custody and if the
nc
Prosecution file is received in the Prosecution Cell, on the next date of remand extension, the officer
concerned with the investigation, shall accompany the remand officer to brief the Panel Counsel
re
regarding the progress of the investigation. There are instances where Magistrate also insist for the
presence of the Investigation Officer to know the progress of the investigation or for any other queries. In
fe
the absence of information regarding progress of investigation, there may not be any material available to
.re
justify further custody and Magistrate may refuse to extend the custody.
7. He shall also ensure that orders that orders for allocation of the case to Penal Counsel is
obtained from A.C./Prosecution, and necessary entries are made in the Complaint Register by the Officer
w
attached to him. He shall handover the zerox copies of the documents to the concerned Penal Counsel
w
for drafting the complaint. As soon as the draft of the sanction for prosecution and complaint is received,
w
he shall verify whether the complaint and sanction for prosecution is factually correct as per the
documents and whether the Sections of the relevant Acts are quoted correctly. Thereafter he shall
submit the file to the Commissioner /Addl. Commissioner through the A.C./Prosecution for approval and
sanction. After the documents are signed, he shall ensure that the vankalatnama is prepared and the
complaint filed in the concerned Court.
8. Once the complaint is filed in the Court and the trial starts, it should be ensured that the
Prosecution Witnesses are called as and when the Panel Counsels desires to examine them. Such
witnesses shall go through Prosecution file in the Prosecution Section before tendering evidence in the
Court. Wherever necessary, they will also be briefed by the Panel Counsels. The Court Supdt. Shall also
collect the notes of evidence from the Court through the Panel Counsels. Such notes of evidence have to
be collected on making application to the Court and on payment of the cost. One copy of such notes of
evidence shall be kept in the case file and a copy of the same shall also be given to the panel Counsel so
that witnesses could refer to the said notes whenever they are called for examination/cross examination
later on. This will help the Panel Counsel to keep a track of the day to day proceedings and Asstt.
Commr./Prosecution would be in a position to exercise a closer supervision of the day to day
developments. The expenditure incurred for getting the notes of evidence will be claimed from Admn.
www.referencer.in
155
Section under miscellaneous expenditure by the Officer. The Supdt. Shall evaluate the quality of
evidence deposed by the departmental witnesses in respect of the document tendered by them. He shall
also watch the performance of the Panel Counsel with reference to the document tendered and defend
the interest of the department.
9. Once the judgement is delivered the Supdt. Court Officer shall pursue the Panel Counsel:
(a) to submit a written application to the Magistrate to allow a reasonable time in case where the
court passes orders directing the department to return the accused’s documents immediately
and also reasonable time from the execution of court order in case of acquittal.
(b) to apply for the certified copy of the judgement. While obtaining the certified copy of the
judgement, the Supdt. Court Officer shall invariably in each case obtain the Panel Counsels legal
opinion on the judgement. In case where the punishment awarded are inadequate or the cases
which deserve to be appealed against, the u;ncertified copies of the judgement shall be obtained
immediately. Opinion from the Law Ministry if necessary shall be obtained immediately and file
shall be submitted to Commissioner at the earliest so that the department can file the appeal
effectively wherever required.
10. Where a decision has been taken to file SLP /appeals to Superior Courts in any; prosecution
n
case, Supdt. Court Co-ordination and Supdt. Of the concerned Court, in consultation with Panel Counsel
r.i
and Law Ministry, as the case maybe, shall take all necessary precautions as deemed fit, to pursue the
case till its logical conclusions, besides progress of such case, from time to time, shall be reduced in
e
writing and be brought to the notice of Commissioner through A.C,/prosecution.
nc
[ Based on office order dt. 16.04.98 issued by Commissioner of Customs (Preventive), Mumbai, in
F. NO.- SD/ZNT/ADMN/161/98 A]
re
ARRESTS AND/OR PROSECUTION FOR CUSTOMS OFFENCES

fe
Guidelines on launching Prosecution/Arrests.

.re
Ministry’s instructions F. No. 711/16/84 – CUS (AS), dated the 21st May, 1990 and 20th February,
1992, and in view of the various changes in the policy & economic liberalisation effected since 1990, the
w
changes in the value of the rupee & need to avoid arrests / prosecutions in relatively petty offence cases
w
under the new environment the guidelines reviewed by the Government. Having due regard to the
suggestions of various Chief Commissioners and Commissioners in response to the Board’s
w
Communication on the above subject and after careful consideration, the Government has decided to
prescribe the following revised guidelines for launching of prosecution for offences under the Customs
Act, 1962, and arrests where warranted, in supersession of the existing guidelines contained in the
aforesaid letters :
2. Prosecutions should be considered and launched after very careful consideration of the nature of
offence, the role of the person concerned and evidence available to substantiate the guilty
knowledge/mens rea etc. Prosecution may be considered in the following categories of cases :
(i) (a) Cases involving unauthorised importation in baggage/ under Transfer of Residence Rules,
where the CIF value of the goods involved is Rs. 5,00,000/- (Rupees Five lakhs) or more ;
(b) Cases relating to importation of trade goods (i.e. appraising cases) involving deliberate
misdeclaration/ misclassification with a view to importing banned or highly restricted items or
with a view to attempt to defraud revenue or to smuggle goods in the guise of trade
consignments and where the CIF value of the offending goods is Rs. 10,00,000/- (Rupees
Ten lakhs) or more ;
www.referencer.in
156
(c) Other cases involving smuggling of goods and cases of attempted unauthorised
exportation/smuggling of currency by outgoing passengers or town seizures, where the CIF
value of the goods/currency is Rs. 5,00,000/- (Rupees Five lakhs) or more ;
(ii) The above criteria would, however, not apply in cases of repeat offences or persons indulging
professionally or habitually in such violations or where criminal intent is evident in ingenious way
of concealment or otherwise, where prosecutions can be considered irrespective of the value of
goods/currency involved in such repeat, professional or habitual offences, etc. However,
prosecution may not be considered in petty repeat violations so long as cumulative value of the
offending goods/currency is not more than rupees five lakhs.
(iii) The above criteria would also not apply in the cases involving offences relating to very sensitive
items like narcotic drugs and psychotropic substances, arms, ammunitions and explosives,
antiques, art treasures, wild life items and endangered species of flora and fauna. In such cases,
launching of prosecution should be considered invariably, irrespective of the value of the
offending goods involved.
It may be noted that considering the liberalisation in Gold/Silver import policy since 1991,
these items have been taken out of the list of sensitive items as per earlier guidelines where
n
prosecution was considered irrespective of value limit. Prosecution for offences relating to these
r.i
items will now be covered by guidelines at (i) & (ii) above.
(iv) In respect of cases involving non-declaration of foreign currency by foreign nationals and NRIs
e
(normally visiting India for travel/ business trips etc.) detected at the time of departure, exceeding
nc
the value limit of rupees 5 lakhs as prescribed under sub-para (i) (c) above, who claim the
currency having been legally acquired and brought into India but inadvertently not declared, the
re
arrest and prosecution need not be considered in routine. The status & business standing of the
foreign nationals/ NRIs the manner and place of recovery, corrobative evidence if any to
fe
substantiate the claim of bonafide & proper acquisition but inadvertent non-declaration, and other
.re
attendant factors may be considered immediately by the Commissioner concerned and a decision
taken whether the case involves criminal intent warranting arrest and launching of prosecution or
not. Where the prosecution is not considered called for the case can be adjudicated on the spot
w
by the proper officer and suitable order for confiscation / fine / penalty etc. passed.
w
(v) Except in respect of cases covered by sub-para (i) (b) above, in all other cases, prosecution may
w
be launched after due sanction by the concerned Commissioner of Customs. Prior concurrence
of the Chief Commissioner will be essential for prosecutions under category covering by (i) (b)
above.
3. Arrests in Customs offence cases :
(i) Persons involved in customs related offence cases who may be liable to prosecution should not
be arrested in routine unless exigencies of certain situations demand their immediate arrests.
Thus, at times, prior to prosecution, arrest (s) may be necessary to ensure proper investigations
and penal action against the person (s), as otherwise the person involved in the offence may
hamper investigations or disappear from the scene/area – such as in cases involving outright
smuggling by Sea/Air/Land route.
(ii) Arrest should be made only when it is intended to prosecute the offenders and the monetary
limits or conditions provided for prosecution would apply equally to arrests.
(iii) Though under Sec. 104 of the Customs Act, Commissioners of Customs have been empowered
to delegate to an officer of Customs by general or special order, powers of arrest of persons guilty
of offence punishable under sec. 135, Government would like extreme circumspection and care in
exercising these powers and ordering arrests. In all commercial fraud cases in relation to regular
www.referencer.in
157
imports or exports, before arresting any persons (s) the Commissioner/ADG concerned should be
approached by the Investigating Officer and the Commissioner /ADG should be personally
satisfied that there are sufficient grounds warranting arrest of the persons (s). These
grounds/reasons should also be recorded by the concerned Commissioner / Additional Director
General in writing on file before the arrest is ordered and effected by the proper officer.
(iv) As far as possible, in other than commercial fraud cases also warranting prosecution under Sec.
135, where arrest is considered necessary Commissioner’s / ADG’s prior clearance and approval
for arrest may be taken. However, there could be situations, for example in outright smuggling
cases in remote areas (and sometimes even in town seizure or international passenger clearance
offence cases) where it may not be administratively possible to get prior permission of concerned
Commissioner/ADG before effecting arrest. In such cases, the decision to arrest a person in
accordance with the quidelines - taki–g due note of the offence against the person which has
come to light in investigations carried out, should be taken at the minimum level of the concerned
Assistant Commissioner / Assistant Director – recording the reasons in writing. Further, in such
cases, the concerned Assistant Commissioner/Assistant Director or other higher officer (lower
than Commissioner/ADG) who has ordered arrest, should immediately after arrest furnish a
n
report incorporation reasons for arrest, to the jurisdictional Commissioner/ADG and his
r.i
satisfaction for the arrest made should also be kept on record in writing.
4. The following aspects of earlier instructions, (as modified where necessary) may also be kept in
e
view while considering launching of prosecution for offences under the Customs Act, 1962:-
nc
(i) Prosecutions should not be launched as a matter of routine and/or in cases of technical nature,
where the additional claim for duty is based solely on a difference of interpretation of the law.
re
Before launching any presecution, it is essential that the department should have sufficient
evidence to prove that the person company or individual, against whom prosecution is being
fe
considered, had guilty knowledge of the offence or had fraudulent intention of committing the
.re
offence, or in any manner possessed mens rea which would indicate his guilt. It follows,
therefore, that in the case of Public Limited Companies, prosecution should not be launched
indiscriminately against all the Directors of the Company, but should be restricted to only such of
w
the Directors like the managing Director, Director in charge of marketing and / or Sales, Director
w
(Finance) or such other Directors who are concerned with the import/export of the goods. The
w
intention should be to take recourse to the prosecution only against those persons, who have
taken active part in committing, or have connived at, the offencerelating to either of smuggling or
of Customs Duty evasion or of misdeclaration of value, quantity etc. For this purpose, the
Commissioners should go through the relevant case file thoroughly and ascertain for themselves
the definite involvement of different partners/directors/executives/officials, against whom
reasonable evidence about their involvement in the offence exists and should be proceeded
against, while launching the prosecution. For example, the nominee Directors of the Financial
Institutions, who are not concerned with day to day matters, should not be prosecuted, unless
there is a definite evidence to establish their active involvement. Prosecution should be launched
only against those Directors, Partners, Officials etc., who are found to have guilty knowledge,
fraudulent intention of mens rea necessary to hind them to criminal liability ;
(ii) One of the important considerations for deciding whether prosecution should be launched, is the
availability of adequate evidence. Prosecution should be launched against top management only
if there is adequate evidence/material to show their involvement in the offence and after proper
application of mind at the level of Commissioners/Chief Commissioners ;
www.referencer.in
158
(iii) Normally, adjudication proceedings should be completed before launching prosecution.

However, if the party deliberately delays the adjudication proceedings or in any case it is not
possible to complete the adjudication proceedings within a reasonable time limit, prosecution may
be launched even during the pendency of the adjudication proceedings, as undue delay could
weaken the department’s case. However, in straight cases, where persons, including foreigners,
are caught red handed and protracted investigations are not to be carried out, prosecution may
be launched immediately after the seizure of the goods;
(iv) Prosecution should not be kept in abeyance merely on the ground that the party has gone in
appeal/revision. However, in order to ensure that the proceedings in appeal/revision are not
unduly delayed, because the case records are required for purposes of prosecution, a parallel file
containing copies of the essential documents relating to adjudication should be maintained. It is
necessary to reiterate that in order to avoid delays, the Commissioners should indicate, at the
time of passing the adjudication order itself, as to whether they consider the case fit for
prosecution, so that it could be further processed for launching prosecuting or for being sent to
the Chief Commissioner for price approval, wherever necessary.
5. Procedure for launching prosecution :
n
(i) In all such cases, where prior approval of Chief Commissioner is necessary for launching
r.i
prosecution i.e. in cases covered by para 2 (i) (b) above, an investigation report for the purpose
of launching prosecution (as per Annexure- I), should be carefully prepared and signed by the
Assistant Commissioner concerned.
e
The investigation report, after careful scrutiny (for
nc
incorporation of all relevant facts) and duly endorsed by the Commissioner, should be forwarded
to the Chief Commissioner for approval, within a month of the adjudication of the case. A criminal
re
complaint in a Court of Law in such cases, should be filed only after the approval of jurisdictional
Chief Commissioner has been obtained. The Chief Commissioners should ensure that a decision
fe
about launching of prosecution or otherwise, is taken after careful analysis of evidence available
.re
on record and communicated to the Commissioners, within a month of the receipt of the proposal
from the Commissioners;
(ii) In all other cases, where prior approval of Chief Commissioner is not required, the decision about
w
launching of prosecution or otherwise should be taken by the Commissioner after careful

w
application of mind and analysis of evidence brought on record. This should be completed within
w
a month of adjudication of the case (unless it is decided to go for prosecution even prior to
adjudication in certain category of cases/particular case, mentioned earlier);
(iii) It is hardly necessary to emphasise that the prosecution once launched should be vigorously
followed. The Commissioners should monitor cases of prosecution at monthly intervals and take
corrective action, wherever necessary, to ensure that the progress of prosecution is satisfactory;
(iv) With a view to ensure that the prosecutions have a deterrent effect, it is necessary that
convictions should be secured with utmost speed. This can only be done by regular monitoring of
the progress of the prosecution;
(v) It has been observed that the delays in the Court proceedings occur due to the non-availability of
records required to be produced before the Magistrate. As a matter of practice, whenever a case
is taken up for seeking the approval of the Commissioner or Chief Commissioner, as the case
may be, for launching prosecution, an officer should be nominated/designated, who shall
immediately take charge of all documents, statements and other exhibits, that would be required
to be produced before a Court. The list of exhibits etc. should be finalised in consultation with the
Public Prosecutor at the time of drafting of the complaint. Such exhibits should be kept in the
safe custody;
www.referencer.in
159
(vi) Once conviction is obtained in a prosecution case, the Commissioner responsible for the conduct
of the prosecution, should study the judgement and where it is found that the persons have been
let off with light punishment than what is envisaged in the Act, the question of filing appeal under
the law should invariably be examined with reference to the evidence on record within the
stipulated time. This is equally applicable in cases in which a Court orders acquittal without
recording sufficient reasons in the judgement even though adequate evidence is available and
was provided before the Court;
(vii) Section 135-B of the Customs Act, 1962, grants the power to publish name/place of business etc.
of persons convicted under the Act, by a Court of law. It is observed that this power is being
exercised very sparingly by the Courts. The Board desires that in all cases in respect of all
persons, who are convicted under the Act, the department should make a prayer to the Court to
invoke this section.
(viii) A Prosecution Register in the form enclosed as Annexure II to this letter, should be maintained in
the prosecution cell of the Commissionerate headquarters/Custom House.
6. Director General (Inspection ) and Chief Commissioners of Customs & Central Excise, while
carrying out inspection of the Commissionerates/Custom Houses, should specially check all the
n
above mentioned points, and make a mention about implementation of the guidelines in their
r.i
Inspection Reports.
7. Where a case is considered suitable for launching prosecution and where adequate evidence is
e
forthcoming, securing conviction largely depends on the quality of investigation. It is, therefore,
nc
necessary for senior officers to take personal interest in investigations of important cases of
smuggling/duty evasion and to provide guidance and support to the investigating officers at the
re
stage of investigation itself.

fe
[ Ministry’s letter F. No. 394/71/97-CUS (AS) , dated the 22nd June, 1999 ]
.re
ANNEXURE – II
w
PROSECUTION REGISTER
w
w
1. SERIAL NUMBER
2. DIVISION/PREVENTIVE UNIT/APPRAISING GROUP
3. FILE NUMBER
4. DATE OF DETECTION
5. NAME OF ACCUSED
6. NATURE OF OFFENCE
7. AMOUNT OF CUSTOMS DUTY EVADED/VALUE OF CONTRABAND GOODS SEIZED
8. PERIOD OF EVASION, DATE OF SEIZURE
9. CRIMINAL COMPLAINT NUMBER
10. DATE OF SANCTION OF PROSECUTION
11. DATE OF FILING OF COMPLAINT
12. DATE OF ISSUE OF PROCESS
13. NAME OF COUNSEL
14. DATE OF JUDGEMENT
15. DATE OF APPEAL AGAINST THE JUDGEMENT & COURT IN WHICH APPEAL FILED
www.referencer.in
160
ANNEXURE – I
INVESTIGATION REPORT FOR THE PURPOSE OF LAUNCHING PROSECUTION

AGAINST_____________________________________________________________________
COMMISSIONERATE___________________________________________________________
1. Name & address of the Accused :
2. Nature of offence including commodity :
3. Charges :
4. Date/Period of offence :
5. Amount of duty Evasion/value of contraband goods involved :
6. Particulars of persons proposed to be prosecuted :
(a) Name
(b) Father’s name
(c) Age__________________ Sex________________
(d) Address
(e) Occupation
n
(f) Position held in the company/firm
r.i
(g) Role played in the offence
(h) Material evidence available against the accused (Please indicate separately documentary
and oral evidence)
e
nc
(i) Action ordered against the accused in adjudication proceedings
7. Brief note as to why prosecution is recommended
re
NOTE
fe
(A) The proposal should be made in the above form in conformity with the guidelines issued by the
.re
Ministry. With regard to column 3 above, all the charging sections in the Customs Act, 1962 and
other allied Acts should be mentioned. If the provision for conspiracy as under Section 120-B of
IPC is sought to be invoked, this fact should be clearly mentioned. With regard to Column 6,
w
information should be filed separately for each person sought to be prosecuted .

w
(B) A copy of the show cause notice as well as the order of adjudication should be enclosed with this
w
Report. If any appeal has been filed against the adjudication order, this fact should be specifically
stated.
(C) Where prosecution is being recommended even prior to completion of adjudication, as per
guidelines, brief reasons therefor be also indicated in the brief note mentioned at Sl. No. 7 above.
REQUIREMENT TO BE FOLLOWED IN ALL CASES OF ARREST

The Honourable Supreme Court in the case of D. K. Basu v/s. Sate of West Bengal and others
have envisaged certain requirements to be followed in all cases of arrest or detention. In line with the
said requirements, following preventive measures should be followed in all cases of detention or/and
arrest.
(1) The officer carrying out the arrest shall prepare an ‘Arrest Memo’ at the time of arrest and the
same shall be attested by atleast one witness. The witness may be either member of the family
of arrestee or respectable person of the locality. The ‘Arrest Memo’ shall also be countersigned
by the arrestee with date and time.
(2) The person who has been detained or arrested should be allowed to inform one friend or relative
or other person known to him or having interest in his welfare, as soon as practicable, unless the
www.referencer.in
161
attesting witness of the ‘Arrest Memo’ is himself [such friend or relative of the arrestee, about his
arrest and place where he is kept.
(3) The time, place of arrest and venue of the custody of an arrestee must be notified, where his
friend or relative lives outside & district or town through the Legal Aid Organisation in the District,
telegraphically within a period of 8 to 12 hours after the arrest.
(4) The person arrested must be made aware of this right to have some one informed of his arrest or
detention as soon as he is put under arrest or is detained. He should be made aware of this right
in writing and acknowledgement taken.
(5) If requested by the arrestee, he should also be examined at the time of his arrest and major and
minor injuries, if any, present on his/her body must recorded at that time. Such ‘Inspection
Memo’ must be signed by the arrestee and the officer effecting the arrest and its copy be
provided to the arrestee.
(6) The arrestee should be subjected to ‘Medical Examination’ by a trained Doctor every 48 hours of
his detention in custody by a Doctor on the panel of the approved Doctors appointed by the
Director, Health Services of the concerned States.
(7) Copies of the all the documents including the ‘Arrest Memo’ referred to above should be sent to
n
the CMM for his record.
r.i
(8) The arrestee may be permitted to meet his lawyer during interrogation, though not through-out
the interrogation. ‘Lawyers Register’ may be maintained to indicate the name of lawyer, whom
e
did he meet, starting and closing time of meeting and duration of meeting. The arrestee may be
nc
asked to give in writing if he wants to meet advocate and whether the lawyer meeting him is his
lawyer Signature of the lawyer be obtained in the said Register.
re
(9) An ‘Arrest Register’, should be maintained having following columns;

(j) Name, father’s name, address with telephone Nos. and age of arrestee.
fe
(ii) Name of officer (s) handling interrogation, with specific time of interrogation by the officer.
.re
(iii) Name of officer (s) who is causing the arrest.

(iv) Name of officer who informed the arrestees friend, relative etc. about arrest, time and
mode of such communication as also the name of such friend, relative etc. alongwith
w
address.
w
(v) In case the person arrested does not have friends, relative etc. in the place of arrest, the
w
time date and mode of informing Legal Aid Organisation about the arrest.
(vi) If arrestee is examined by the Doctor, his name, address and telephone number and date
and time of examination.
(vii) Report of examination.
(viii) Date and time of the submission of documents to CMM.
(ix) The officer (s) handling interrogation should bear accurate, visible and clear identification
of name and designation.
[ Excepts from DRI, MUMBAI, Circular No. DRI/BZU/B/22/97 of 01/12/97 ]
Grant of exit permission to foreigners arrested and prosecuted under various laws – procedure
The issue regarding grant of exit permission to foreigners arrested and prosecuted under various
laws has recently been taken up by the Ministry of Home Affairs with all concerned administrative
ministries.
The modalities and procedures have now been worked out and it is decided that in all cases of
foreign nationals arrested and prosecuted in the trial court the following procedure may be followed so
that there is no undue delay in taking a decision to hold back the foreigners in the country :-
www.referencer.in
162
(a) All the enforcement agencies would immediately inform the foreigners division of MHA about the
arrest of a foreigner and also the follow up action which is to be taken against him. Communication
shall be addressed to Chief Documentation Officer, Room No. 10, Foreigners Division, Ministry of
Home Affairs, Lok Nayak Bhawan, New Delhi. 110 003.
(b) All the enforcement agencies shall within a period of 10 days of the receipt of the certified copy of the
judgement/order decide the question of filing an appeal to the next higher court. The decision taken
in this regard may be comunicated to Ministry of Home Affairs (Foreigners Division) and to the nodal
Ministry concerned.
(c) Copy of the exit permission given by MHA shall be endorsed to the prosecuting agency/nodal agency.
[ M.F.,D.R., Letter No. 394/125/96-CUS (AS) dt. 12/06/97 ]
Guideline for submitting proposals to file SLP in Supreme Court against the High Court’s order in
all Anti Smuggling related matters –
On scrutiny of the proposal submitted by the Commissionerates from time to time for filing SLP in
the Supreme Court against the High Court’s order in respect of anti smuggling cases booked under
Customs Act, 1962 and NDPS Act, 1985 by the officers of the Customs Department or DRI etc., it is seen
n
that often the documents relevant to filing SLP in the Supreme Court are not furnished by the field
r.i
formations under the CBEC. Moreover the proposals are sometimes sent by the field formations much
after the limitation period on the expiry of the last date of filing SLP and without the reasons of delay
which have to be submitted to Supreme Court.
e
Due to delay in receipt of proposal from the field
nc
formations to file SLP, there is no time to pursue the case with Ministry of Law as well as with Supreme
Court, CAS to file SLP well in time. To avoid this delay in submitting the proposal you are requested to
re
furnish the following documents alongwith proposal for filing the SLP in the Supreme Court:-
(i) Proposal should enclose brief facts of the case giving details of seizure, adjudication, court cases
fe
etc.
.re
(ii) Certified copy of the High Court’s order. In case certified copy of the order is not available a dasti
copy alongwith date on which application for certified copy was made.
(iii) Copy of the Lower Court’s order.
w
(iv) Opinion of the Deptt. Counsel or senior Govt. Advocate.

w
(v) Copy of the opinion taken, from the concerned Law Sectt Branch, Ministry of Law. In case
w
opinion of regional Ministry of Law branch not taken, reasons therefor.

(vi) Proposal should be duly recommended by concerned Commissioner and must be send to the
Ministry within 3 weeks of date of receipt of order. In case of delay, day wise explanation for
delay must be given separately.
These guidelines may be followed strictly.
[ M.F.,D.R., letter F.NO. 591/41/96 – CUS (AS) Dt. 05-09-97 ]
Procedure for Complaint cases

Chapter XIX of the Code of Criminal Procedure 1973, regulates the procedure for trial of warrant
cases by Magistrates. There are two types of cases, namely (1) cases instituted on a police report (ii)
cases instituted other than on a police report. All offences (except those under Section 132, 133, 134 of
the Customs Act fall under category (ii) above, as they are warrant cases and the punishment provided
thereunder over two years. Offences under Section 132, 133 and 134 are summons cases as the
punishment provided is less than two years for which the procedure is laid down in Chapter XX (Sections
251 to 259 of the Code of Criminal Procedure). The complaints are Chapter III of the code of Criminal
Procedure deals with the powers at the various courts. Generally, the Customs cases are tried in the
www.referencer.in
163
Courts of Chief Judicial Magistrates or Chief/Additional Chief Metropolitan Magistrates who are First
Class Magistrates and are competent to award imprisonment upto 7 years.
Chapter XXI of the Code of Criminal Procedure deals with summary trials but the provisions
contained therein with regard to the punishment would not apply to the offences under the Customs Act
tried summarily. (Section 138 of Customs Act, 1962).
Various stages of prosecution case

A complaint case has generally four stages as under :
(i) After the accused person appears in the court and is released on bail, the prosecution starts with
the recording of their evidence mainly of eye-witnesses. Besides, the complainant is required to
prove the factum of the complaint having filed by him, the sanction accorded by the
Commissioner etc. In case, he has also taken part in the seizure or investigation of the case, the
factum or recovery and recording of the statements etc. would also be get proved through him.
The accused is given an opportunity to cross examine the witnesses and if necessary the
prosecution can re-examine them. The prosecution therafter closes its case for consideration of
the charge against the accused. After arguments for charge on both sides, the court decides
n
whether there is a prima facie case made out for framing of a charge or not against the accused.
r.i
A charge is always framed by the court in writing and is explained to the accused who is asked if
he would pleads guilty to the charge, the Court would pronounce the judgement and convict the
e
accused then and thereby imposing the punishment, arranged by law, if he does not plead guilty
nc
to the charge and claims to be tried he is asked, if he would like to cross-examine any of the
witnesses already examined before charge, who would then accordingly be summoned by the
re
Court, if no charge is made out, the court would straightway discharge the accused.
(ii) Trial stage – After framing of the charge, the trial of the case begins. After completing the cross-
fe
examination of the witnesses already examined before the charge and summoned at the instance
.re
of the accused, the remaining prosecution evidence is recorded, of course by giving an

opportunity to the accused to cross-examine and the prosecution to re-examine the remaining
witnesses. Thereafter, the prosecution closes its case.
w
(iii) Defence stage – The accused is first examined by the Court to personally explain the
w
circumstances appearing in evidence against him and then asked to lead his defence. He is not
w
examined on oath. However, the accused person can also be a witness in his defence at his
own request in writing, when he can be cross-examined by the prosecution also.
(iv) Final arguments and judgement :- After the close of the Defence evidence, the court hears the
final argumetns advanced by both sides who are also permitted to file written arguments in
support of their case. After hearing arguments, if the Court finds the accused not guilty, it shall
record the order of acquittal. If it finds the accused guilty, it shall after haring the accused on the
question of sentence, pass sentence on him according to law.
(v) Appeals : (a) Chapter XXIX of Code of Criminal Procedure deals with an appeal against
conviction awarded by the Chief/Additional Chief Judicial Magistrate or Chief/Additional Chief
Metropolitan Magistrate which would lie in the court of sessions. Where an accused person has
pleaded guilty and has been convicted on such plea, there shall be no appeal except to the extent
or legality of the sentence. No appeal shall also lie in petty cases i.e. if the Magistrate passes a
sentence of imprisonment for a term not exceeding 3 months or a fine not exceeding Rs. 200/- or
both.
(b) The State Government may in any case of conviction on a trial held by any Court other than a
www.referencer.in
164
Night Court, direct the public prosecutor to present an appeal to the High Court against the
sentence on the ground of its inadequacy.
(c) An appeal against acquittal may be filed by the State Government, which may direct the public
prosecutor to present an appeal to the High Court from an original or appellate order of acquittal
passed by any Court other than High Court.
(d) The complainant can also file an appeal in the High Court against the acquittal after obtaining
special leave to appeal from the High Court. Where the case has been investigated by Delhi
Special Police Establishment or any other agency empowered to make investigation under any
Central Act, the Central Government may also direct the Public Prosecutor to present an appeal
in the High Court against the acquittal.
(vi) Revisions :- Chapter XXX of Code of Criminal Procedure deals with Revisions. The High Court
or the Sessions Court may call for and examine the record of any proceedings before any interior court
situated within its or his local jurisdiction for the purpose of satisfying itself as to the correctness, legality
or propriety of any; finding, sentence or order, recorded or passed and as to the regularity of any
proceedings of such inferior court and may, when calling for such record, direct that the execution of the
sentence or order be suspended and if the accused is in confinement that he be released on bail on his
n
own bond pending the examination of the record. The powers of revision shall not be exercised in
r.i
relation to inquiry, trial or other proceedings.
Procedure for filing appeals etc

e
nc
Immediately after the judgement of the trial court is pronounced, a certified copy of the judgement
should be obtained and get examined from the departmental counsel whether it is a fit case for filing an
re
appeal, if there is an acquittal or for filing an appeal against the inadequate punishment awarded by the
trial court. All such cases should be examined critically and decision taken promptly in the matter of filing
fe
the appeal or otherwise, as advised. In important and complicated cases, the advice of the Ministry of
.re
Law should invariably be taken. The decision to file the appeal or not, be taken by the Commissioner and
the appeal should be filed within the limitation period.
w
Limitation for filing of the appeals against conviction / acquittals

w
The Limitation Act, 1963 applies for computing the period for filing of appeals against conviction
w
/acquittal/inadequate punishment awarded by the trial courts. While computing the said period,
the time taken for obtaining the certified copy of the judgement is however, excluded:
(i) Limitation for filing appeal against conviction : 30 days
(ii) Limitation for filing appeals against acquittal : 30 days
(a) Where appeals are filed by State or Central Government 90 days
(b) Where special leave is obtained and a regular appeal is filed by the complainant 30 days
from the date of obtaining the Special leave 90 days.
(iii) Appeal against the inadequate punishment
Prosecution under the Customs Act and other allied Acts

While department adjudication under the Customs Act cannot be combined with the adjudication
under the Gold Control Act, there is, however, no objection to charge the party for both the offence and to
have him tried in one trial by filing a single complaint, incorporating therein the facts constituting the
offence both under the Customs, and other allied Acts.
www.referencer.in
165
Model Remand Application
IN THE COURT OF THE CHIEF METROPOLITAN MAGISTRATE,...............
Application No.
Shri
.......................... Applicant
Customs Officer,
APPLICATION UNDER SEC. 104 OF THE CUSTOMS ACT, 1962
MAY IT PLEASE YOUR WROSHIP
I, ............................................... the abovenamed applicant, beg to state the following on solemn

affirmation :
n
r.i
1 That on .................................................. (Facts of the case)
e
nc
2 (Gist of the Statement)
re
fe
In the aforesaid circumstances, Shri ................................................................... appears

.re
to have committed an offence, punishable under the provisions of the Customs Act, 1962.
Therefore, he was arrested under Section 104, of the Customs Act, 1962, on .........................and
was lodged at ......................................... Police Station for safe custody. Today, I beg to produce
w
him before Your Worship and pray that he be remanded to Judicial Custody till ............................
w
as further investigations are in progress.

w
It is further prayed that the passport of Shri ......................................................... may be

ordered to be retained with the Customs Department, till the case against him is over.
Solemnly, affirmed at .................
Dated ..........................
(Signature of the Applicant)
( Office Seal )
www.referencer.in
166
Model Application to Court for Examination Warrant
IN THE COURT OF THE CHIEF METROPOLITAN MAGISTRATE,................
Application No. R.A. ................../..............
Shri ...................Preventive Officer of Customs, .................................. Applicant
APPLICATION FOR EXAMINATION WARRANT

MAY IT PLEASE YOUR WORSHIP
I, ...................................................................................... the applicant abovenamed, beg to state

the following on solemn affirmation.
That on .......................Shri................................................................................... was arrested by

this Department in connection with smuggling. He was produced before your Worship and was not
n
granted bail.
r.i
As he is required for interrogation in the Custom House, it is prayed that Examination Warrant
may be issued against accused Shri..........................................on .......................
e
nc
For this act of Kindness I shall ever pray.
re
Solemnly affirmed the aforesaid at

fe
This ........................... day of ..........................................

.re
(Signature of Applicant officer)

w
w
w
( Office Seal )
@@@@@@@@@@@@
www.referencer.in
CHAPTER – TWELVE
NARCOTIC DRUGS & PSYCHOTROPIC SUBSTANCES
INTRODUCTION
Since the dawn of history, mankind has been pre-occupied. With the discovery, acquisition and
use of substances – First natural and later man-made – believed to be capable of having a positive
influence on mood, behavior and health. The most ancient of these substances are opium from the poppy
plant; cocaine from the leaf of the coca bush; and cannabis from the hemp plant. Along with the growth of
interest and experience in the application of these substances to cure disease and to obtain pleasurable
sensations, means were found to restrict their use to avoid their sometimes negative and toxic effects,
while at the same time, maintaining the desired beneficial actions.
th
Till the end of the 19 century, it was possible to keep the use of these mood-altering substances
n
within acceptable limits in most geographical areas and cultural settings. With the development of
r.i
chemical technology, it became possible to synthesis quantities of morphine and its derivatives as well as
an increasing number of the alkaloids. The spread of drugs was made easier by the rapid expansion of
e
communications, transport and international trade which reduced geographical distances and eliminated
nc
many natural barriers between countries. A negative result of this development was that drug abuse
began to spread until it became a matter of increasing concern all over the World. The evident
re
relationship between the drug intake on the one hand and family and social disruption; crime and
personal and public health problems on the other hand, also contributed to the growing convictions that
fe
st
international and governmental controls were necessary. Thus, in the 21 century, society has become
increasingly concerned with the question of drugs, their actions end effects and their rational use. The
.re
spectacular increase in medical materials in general and in the use of synthetic psycho-active drugs in
particular has been the main contributing factor in this situation.
w
w
( A ) NARCOTIC DRUGS
w
The word “NARCOTICS” is a Greek term, which means ‘to deaden’ or ‘benumb’. The main effect
of narcotics is to reduce or kill pain. The intake benumbs the senses, thereby make pain or fear of it, less
acute and induce sleep.
Defined medically, “Narcotics” are drugs that produce insensibility or stupor because of their
depressant effects on the Central Nervous system (CNS). Included in this category are the opium and its
derivatives, synthetic opiates like mepridine and methadone.
Pharmacologically, narcotics are drugs that act in the same manner as the morphine. Since
morphine is the most important ingredient of opium, these drugs are known as “opioids”.
Drugs belonging to these three categories are studied under three broad categories. (1) narcotics
of natural origin, (2) semi-synthetic narcotics and (3) synthetic narcotics.
www.referencer.in
168
NARCOTIC ANALGESICS
______________________________________________
Natural Semi-Synthetic Synthetic
Poppy plant Morphine
Opium Heroin _____________________
Mepridine Methadone
Pethidine
Morphine Paragoric Codeine Brown Sugar

(Impure Heroin)
n
r.i
Poppy Plant
Poppy plant grows to about 1 metre in height. Its leaves are oblong and its flowers are while,
e
purple or red in colour. Several days after the poppy’s petals fall, a greenish pod, a couple of inches long
nc
and about 2 inches wide, is formed. While it is still unripe, incisions are made on the pod. The milky juice
which exudes from the cut, coagulates on exposure to air. The product so obtained is called opium.
re
Opium appears as dark brown chunk of a material of flattened mass grey brown in colour, malleable in
the fresh state but becomes battle when it is old. It is bitter in taste and narcotic in physiological action.
fe
Powdered opium is light brown in colour when made from crude material.
.re
Chemical tests for opium

The main constituents of opium are Codeine, thehaine, narcotine, papeveerine, porphyroxine and
w
meconic acid.
w
Morphine
Morphine is a white crystalline alkaloid, slightly soluble in water, ether and alcohol. Its source is
w
opium and it tastes bitter. It is administered in salts of morphine sulphate, morphine hydrochloride,
morphine acetate and morphine tartarate. Morphine sulphate is the most common preparation.
Codeine
It is a methyl compound of morphine and is present in opium in a small quantity varying from 0.2
to 0.8 percent. It is colourless and is in the form of white crystal or powder. It is slightly soluble in water
but soluble in ether or chloroform. It is a habit forming drug.
Semi-synthetic
In this category are included morphine, heroin and brown sugar. Morphine is also included in the
category of opium derivatives. Heroin (Diacetyl-morphine) is popularly known as smak, scag, brown sugar
or hard stuff. It is the hydrochloride of an alkaloid base obtained by there action of acetic anhydride with
morphine. It is a white, colourless crystalline powder having a bitter taste. The general physiological
action of diacetyl morphine is much like that of morphine except that the potency of heroin is five times
more than the morphine. It is a highly analgesic drug and is preferred by the hard addicts on account of
its potency.
www.referencer.in
169
Brown sugar
Its street name is smack. It is prepared by combining heroin with adulterants like rat poison
chalk, cleaning powder etc. Its physical appearance is in the form of powder having a high brown or dark
brown in colour.
Synthetic Drugs
Synthetic drugs are those drugs which are formed by chemical reaction in a laboratory as
compared to those of natural origin. The classical examples of these drugs are mepridine and
methadone etc.
( B ) PSYCHOTROPIC DRUGS & SUBSTANCES

The expression “psychotropic” is composed of two separate words ‘psychosis’ and `tropic.’
Psychosis means a mental a mental or personality disorder sufficiently severe to disrupt the individual’s
personal and social life and normally demanding special treatment and hospitalization. Tropic means
pertaining to or characteristics of or, occurring in the tropics, that is; the regions falling between the
0
corresponding parallels of latitude on the terresterial globe, one: tropic of cancer about 23 ½ N and the
0
other, tropic of capricorn, about 23 ½ S of the equator being the boundary of torrid zone. These drugs
n
usually occur in nature in the Torrid Zone.
r.i
Psychotropic substances mean drugs that have a short term effects on the nervous system,
particularly that change the levels of consciousness and/or variations of mood without general stimulation
or depression of the Central Nervous System (CNS).
e
nc
Schedule I of the Narcotic Drugs and Psychotropic Substances Rules, 1985 contains a list of 53
drugs whose import into and export from India is prohibited (vide Rule 53) and their manufacture,
re
possession, transport, import inter-State and export inter-State, sale, purchase, consumption or use are
prohibited vide Rule 64 of the N.D.P.S. Rules (Central).
fe
Schedule II of the Rules contains a list of 24 drugs which shall not be imported into India without
.re
an Import Certificate (in respect of the consignment) issued by the Issuing Authority, in Form No. 4
appended to these rules. Their transit through India is also not allowed unless such consignment is
accompanied by a valid Export Authorisation in this behalf issued by the Government of the exporting
w
country (Vide Rule 57). Similarly they cannot be exported out of India without an export authorisation in
w
respect of the consignment issued by the Issuing Authority in Form No. 5 appended to these rules (Rule
w
58).
Schedule III of the N.D.P.S. Rules contains a list of seven drugs of psychotropic substances
which may be exported out of India after the exporter files the original and duplicate copies of the
declaration in Form 6 to the Narcotics Commissioner. Full details regarding the procedure is given in Rule
58(3) of the Rule.
Canabis Hemp
The hemp drugs commonly used in India, are all derived from the plant cannabis sativa or
cannabis indica which grows all over the country. Bhang, Sidhi, Sabji or pahariya, all are the dried leaves
and small stalks; ganja is the flowering twig, charas is the resin exudate obtained from the cannabis plant
(branches and leaves) and majoon is a form of sweet meat containting a quantity of Bhang.
Constituents of Canabis
Cannabis has four main constituents. They are :
1. Cannabinol
2. Cannabidiol
3. Cannabidiolic Acid and
4. Tetra-hydro cannabinol
www.referencer.in
170
Out of these, tetra-hydro cannabinol is mainly responsible for the physiological properties. Tetra-
hydro Cannabinol is an oily liquid from which two main isomers may be crystallised.
Marjuna
It is a drug that comes from the Indian hemp plant (cannabis sativa). The plant grown very wild in
diverse conditions. There are both male and female plants. Marjuna is the mixture of ground leaves,
stems and the seeds of the female plant. The ingredients are crushed and chopped. It can be smoked in
a pipe or rolled into a cigarette. At times it is mixed with tobacco. It has a sweet odour while smoking
otherwise it smells like burnt rope.
Hashish
This also comes from the hemp plant and is prepared from the flowering tops. When the cannabis
plant is ripe, a sticky yellow resin covers the flowering tops and some of the leaves close to it. The resin
contains the ingredients that causes the intoxicating effect. On account of presence of resin in greater
concentration in Hashish, it is stronger than marjuna.
Ganja
Ganja are the dried flowering tops of the female plants matted together with resin. It is smoked
along with tobacco like charas which is the crude resin extracted from the flowering heads by rubbing
n
these in hands and scraping off the resin left adherent to the palms.
r.i
Marihuana
American hemp (cannabis Americana) is known as marihuana. It produces symptoms similar to
e
the hemp plant of India. The only difference is in effect as compared to that of the Indian product. Its
nc
preparation is known as muggles and is smoked in Mexico and U.S.A.
Cocaine
re
Cocaine is derived; from the leaves of Erythroxylon coca which is a native of South America.
Cocaine is the methyl benzoyl ester of ecgonine, a base similar to topine and, therefore, saponifies
fe
readily. The official preparation of cocaine is cocaine-hydrochloride which occurs in the form of
.re
colourless to while crystal or as a quantity of white powder. Although, it is soluble in water but dissolves
readily in organic solvents as well. Solution to water is alkaline to litmus. It is insoluble in ether.
Cocaine hydrochloride is used therapeutically as a local anaesthesia. It is believed to be an
w
antifatigue agent and produces hallucinations.

w
Controlled Substances :
w
Controlled substances may not necessarily be narcotic drugs or psychotropic substances but may
altogether form a different category, for instance, those used in the manufacture of heroin. Acaetic
Anhydride is one such chemical which is used in the manufacture of heroin.
Acetic Anhydride is an important industrial Chemical which has been notified as an essential
commodity under Section 3 of the Essential Commodity Act, 1955. In order to prevent this substance from
being diversified to the illicit manufacture of heroin, it could be most appropriate to cover this substance
as controlled substance under the N.D.P.S. Act.
INDIAN SITUATION – VULNERABILITY (BORDER-WISE)

Geographically, India is sandwiched between two major sources of illicit drugs in the world – the
Golden Triangle (comprising of Myanmar, Thailand and Cambodia) and the Golden Crescent (comprising
of Pakistan, Afghanistan and Iran) – and, accordingly, it conveniently became a transit country for
movement of these drugs to destinations in the West Nepal, which is situated on the Northern borders of
the country, has been and continue to be the major source of cannabis herbal and, to some extent, of
cannabis resin. Thus, over the years, India has become highly vulnerable to transit of drugs and this is
reflected in the seizures effected in India is adversely affected consuming countries in the West. In order
www.referencer.in
171
of vulnerability, India is adversely affected as a victim country by the drugs coming from the Golden
Crescent area, Nepal and the Golden Triangle area. India has land borders with Pakistan from where the
traffickers have easy access into the States of Jammu & Kashmir, Punjab, Rajasthan and Gujarat; to the
States of U.P. and Bihar on the Indo-Nepal border and to the States of Arunachal Pradesh, Nagaland,
Manipur and Mizoram on the Indo-Myanmar border. To understand the situation in its totality, it would be
necessary to discuss each of these borders separately in detail.
Indo-Pak border: Ever since the emergence of the Golden Crescent as a major source of illicit opiates
and cannabis resin over five years ago, the entire Indo-Pak land border has become extremely vulnerable
for in-smuggling of drugs from Pakistan. The State of Jammu & Kashmir, by its proximity to opiate
sources in Pakistan, is as much vulnerable to trafficking in drugs as any other State bordering Pakistan.
Jammu border is the nearest from the North West Frontier Province where most of the illicit opium is
grown and converted into Heroin. The Kabul-Lahore highway runs fairly close to Jammu before reaching
Lahore, which is opposite to Amritsar in Punjab. Though not many seizures on the Indian side in Jammu
& Kashmir have been reported. Yet most of the major seizures on the Pakistani side take place in areas
bordering Jammu. With security being tightened on the Punjab border, there are reports of diversified
routes being used by traffickers from the areas of Sialkot to Jammu.
n
The Indo-Pak border in the State of Punjab was, till about some years ago, the most vulnerable
r.i
areas for smuggling or drugs like opium, heroin and hashish into India. The security measures taken on
the border have resulted in almost total stoppage of trafficking in opium and substantially reduced
e
smuggling of heroin and hashish. The plain land, well connected by road and rail routes on both sides
nc
facilitated the trafficking. It was easy for the traffickers to manoeuvre their operations in the plains of
Punjab than the hilly terrain of Jammu & Kashmir and the desert in Rajasthan. Also, syndicates indulging
re
in smuggling of other goods like gold, silver, textiles etc. were already active on the Indo-Pak border in
the State of Punjab and these very gangs took up trafficking in drugs too. Intelligence reports indicate that
fe
contraband gold is smuggled from Dubai to Karachi and the same is brought to Lahore, and from the
.re
Lahore sector along with the drugs like heroin end agricultural fields right upto the border on either side
and it is easy to transfer drugs and contraband from one side to the other. Both drugs and gold reach
Delhi while gold enters the stream of trade in Delhi, bulk of heroin and hashish is smuggled out through
w
passenger and through cargo. Due to tightening of security on the borders, there is some diversification of
w
routes to the adjacent State of Rajasthan. The tour sectors of Sriganganagar, Bikaner, Jaisalmer and
w
Barmer are the most vulnerable sectors for trafficking of drugs into India from Pakistan. Mostly, when the
drugs are meant for northern India or Delhi, routes through Sriganganagar and Bikaner are preferred by
traffickers whereas if, the drugs are meant for Western India and Bombay, they are trafficked through
Jaisalmer and Barmer sectors.
Large quantities of heroin and hashish is smuggled into India through camel backs in the
Jaisalmer and Barmer sectors and, after crossing the border, the same is buried and kept under sand.
One of the persons crossing the border gets in touch with the person responsible on the Indian side of the
border either at Jaisalmer or Barmer and they proceed in the night in Vehicles to the points where the
drugs are concealed and, after loading the same, bring them on to the National highway connecting
Delhi-Bombay. The drugs are concealed under trade goods in trucks and they are transported to Bombay
for onward Export. Intelligence available also indicates that hashish smuggled into India through the Indo-
Pak border in Rajasthan is taken by trucks to Tuticorin via Bombay where it is loaded in country crafts.
Australian yatches and boats meet them off the Tuticorin coast where they are transhipped for onward
movement to Australia. On the Pakistani side, the Lahore-Hyderabad highway and the railway line run
parallel to the Indian border. There are well-connected road and rail facilities adjacent to the border on
either side. This border came into prominence some years ago.
www.referencer.in
172
The entire land border between Gujarat and Pakistan is marshy, known as the Rann of Kutch.
Though stray cases of trafficking of drugs through the Rann of Kutch have been reported in the past, yet
the area is not very conducive for this activity. Small country boats called “Hodas” are used for transport
of drugs from Karachi to the Kori-creek on the coast of Gujarat. Though stray cases of trafficking have
been noticed in the past few years, yet the data available is rather erratic to suggest any trends.
Indo-Nepal border: Nepal has a wild growth of cannabis plants in the foot-hills adjacent to the Indian
Terai region. Cultivation of cannabis is also undertaken by the by the poor villagers to supplement their
earnings. The Indo-Nepal border touches the Indian States of U.P., Bihar, West Bengal and Sikkim. Till a
few years ago, some North Indian States allowed cultivation of cannabis for production of ‘bhang’.
However, presently only Orissa and Madhya Pradesh are legally cultivating cannabis for medical and
research purposes. The cultivation is done on very small patches of land. Consumption of cannabis
herbal (Ganja) has been popular in many North Indian States, including U.P. and Bihar since times
immemorial. The progressive reduction in the cultivation of cannabis in India came as a boon to the
traffickers operating on both sides of the Indo-Nepal border. Ganja is smuggled into India by trucks and
on head-loads from Nepal. Since ganja does not form any significant part of the drugs exported out of
India the entire quantity of ganja that is smuggled into India from Nepal is meant for captive consumption.
n
Small quantities of heroin of Thai/Myanmar origin is also trafficked from Nepal into India.
r.i
Nearly 80% of the land border with Nepal is in the State of U.P. However, trafficking of ganja is
mostly done through the State of Bihar. The U.P. border accounts for only small quantities of ganja and
e
charas. Bihar border is very adversely effected where besides trafficking of ganja on head-loads, both rail
nc
and road routes are used very extensively for transportation of the drug. There are well-stacked storage
places adjacent to the border on the Nepalese side. Since there are no passport and visa restrictions on
re
movement of persons between India and Nepal, it becomes, all the more convenient for traffickers to
move drugs across the border without any hindrance. The check-posts manned by police and the
fe
Customs are far and off and cannot patrol the entire length of the border. Cris-cross of different routes is
.re
adopted to transport drugs from the border to the consuming centres. The Nepalese border with West
Bengal is confined to the Darjeeling sector. The terrain being hilly and difficult, trafficking in drugs is rather
insignificant. Also, there are no reports of trafficking of drugs into the State of Sikkim from Nepal so far.
w
Indo-Myanmar border: India’s north-rest comprises of many small States which include the border
w
States of Arunachal Pradesh, Nagaland, Manipur and Mizoram. There are frequent reports of smuggling
w
of Myanmar refined heroin from this border into India, especially through the Indian State of Manipur from
the border town of Moreh. The earlier reports indicated that heroin of Golden Triangle origin was brought
into India from Tamu in Myanmar to Imphal via Moreh. However, recent reports indicate that laboratories
have been set up on the Myanmar side near the Indian border for manufacture of heroin with the aid of
acetic anhydride, which is smuggled out, from India. Reports also indicate that large quantities of heroin
smuggled through this border also find their way into Nepal. However, seizures so far effected and
reported only show insignificant quantities of heroin coming into India. A local factor which creates very
congenial atmosphere for trafficking of drugs is that tribal inhabitants on either side of the international
border can move around freely within a belt of 40 Kms on the Indian side and 16 Kms on Myanmar side
of the border for barter trade in terms of daily necessity without any restrictions of passport and visa.
Intelligence available indicates that at least 80,000 to 1,00,000 hectares is under illicit cultivation of opium
in Myanmar with – potential of 800 to 1000 M.Ts of opium. 17 of these refineries being in Myanmar along
the Thai-Myanmar border, with further five on the Combodia side on the Thai-Myanmar border. Apart from
these major static laboratories, it is estimated that there are further 60 smaller mobile labs working and
roughly half of them are controlled by the so-called Shan United Army in Myanmar. The control of
www.referencer.in
173
cultivation of opium in Myanmar is mostly in the hands of the Myanmar Communist Party and the refining
is in the hands of the insurgent groups.
Intelligence received also indicates that acetic anhydride, a precursor, is smuggled across the
Indo-Myanmar border in jerry cans of 5 gallons each and these jerry-cans are tied to floating rafts, which
travel along the Chinduin River till they reach Mandalay. Further, a 100 Kms belt on the Indian side of the
Indo-Myanmar border was declared as a specified area in which the movement of acetic anhydride has
been banned under the Customs Act 1962 unless certain conditions are fulfilled.
A new trend, which has come to notice, is that large quantities of ganja seized in Assam have
been shown to have originated from Bhutan. If Bhutan takes on the role of another Nepal for illicit export
of ganja to India, we will have a serious problem of trafficking in ganja from Bhutan into the States of
Assam, Sikkim and West Bengal in the near future.
STRATEGIES FOR COMBATING SUPPLY OF DRUGS

The Government of India, being quite concerned with the development relating to drug
trafficking and drug abuse, took stern legal, administrative and preventive measures to contain the
problem. As the first step, the Narcotic Drugs and Psychotropic Substances Act 1985, has been enacted
n
and enforced from Nov. 14, 1985. The new enactment provides for stringent punishments for trafficking,
r.i
possession and consumption offences. For trafficking, the law provides a mandatory punishment of a
minimum period of 10 years imprisonment extendable to 20 year. For the first offence, combined with a
e
minimum mandatory fine Rs.1 lakh extendible to Rs.2 lakh. In the case of repeat offence, the law
nc
provides for a minimum mandatory punishment of 15 years imprisonment, which may extend to 30 years
along with a minimum mandatory fine of Rs.1.5 lakhs extendible to Rs.3 lakhs. Death penalty is imposed
re
for certain offences committed after previous conviction under Section 15 to 25 and 27 (A) of the Act. The
law makes the offence cognizable been empowered to investigate the offences relating to drug trafficking
fe
with the result that almost every part of the country is covered by one or the other enforcement agency.
.re
To co-ordinate the activities of the various enforcement agencies involved in anti-drug trafficking, a
Central authority called the Narcotics Control Bureau, with a wide charter of functions, has been set up.
The major Functions of the Bureau are:
w
(1) Co-ordination of all enforcement actions by the various Central and State authorities:
w
(2) Implementation of obligations in respect of counter-measures against illicit trafficking under

w
the international conventions, protocols and treaties to which India is a signatory;

(3) Assistance to concerned authorities in foreign countries and international organisations with
a view to facilitating co-ordination of universal action for prevention and suppression of illicit
traffic in narcotic drugs and psychotropic substances; and
(4) Co-ordination of action taken by the Ministries of Health and Family Welfare and other
concerned Ministries, Departments and Organisations in respect of matters relating to de-
toxification, treatment and rehabilitation of drug abusers.
The strategy of empowering a number of Central and State agencies under the Act has achieved
the desired results in the form of prize catches, some of them among the world’s largest seizures.
Steps Taken At The Exit Points
The two most important exit points for drugs in India are Mumbai and Delhi. The Delhi airport is
frequently used by drug traffickers to carry drugs to the western consuming countries either on person or
in accompanied baggage. The common modus operandi has been to conceal drugs in false sides and
bottoms of suitcases, concealment in shoes concealment in wearing apparel and also concealment
internally by way or swallowing and stuffing. Though not many cases of drugs concerned in cargo
consignment from Delhi have been intercepted at this end, yet a few cases of such movement of drugs
www.referencer.in
174
have been reported from the destination countries where the interceptions were effected. At Mumbai,
both the airport and the seaport are frequently use by trafficking syndicates for taking drugs out of the
country. Another peculiar modus operandi which has come to notice is that consignments coming from
cities in the interior like Bangalore, Jaipur etc. to Mumbai for Export are substituted with drugs prior to
shipment but after Customs clearance. Passenger traffic continues to be one of the major carriers of
drugs both on person and in many cases concealed internally and also concealment in accompanied
baggage. The seaport at Mumbai has also come to adverse notice for trafficking of drugs mainly through
container traffic. Apart from concealment of large quantities of drugs in items like chilly powder, boric
powder and pickle consignment, it has been the experience that large quantities of drugs are attempted to
be exported in bales of textiles. The drug that finds favour for transportation by sea is mostly hashish.
Most of the big consignments of hashish are destined for Amsterdam, Rotterdam. From there these are
further reported to move to Frankfurt by road. As far as passenger traffic through the airport is concerned,
it has come to notice that certain ethnic groups frequently indulge in carriage of drugs. The largest ethnic
group involved in this nefarious trade is Nigerian nationals, who mostly carry drugs internally. Other
African nationals like those of Ghana, Kenya, Zambia etc. are also frequently coming to notice. Initially,
the Nigerians were using the direct routes from Delhi and Mumbai to Lagos from where the drugs used to
n
find way into Europe and North America. However, Of late, to avoid suspicion, these African groups have
r.i
started routing their journey through East European countries. They sometimes travel to places like
Zurich, Barcelona and Madrid in Europe and from there they either proceed to Lagos or take direct flights
to destinations in North America.
e
nc
LICIT CULTIVATION OF OPIUM
re
India is the only country where cultivation of opium poppy for extraction of opium directly from the
plant is in existence. In other countries where opium poppy is legally grown, the extraction of morphine is
fe
done from the poppy straw. India has evolved a time-tested licensing control over the cultivators of poppy
.re
which has been appreciated by the International Narcotics Control Board in its annual reports. Right from
the time of registration of a plot of land for opium cultivation, there exists a rigorous control over the
various stages or cultivation till the final product of opium is extracted and surrendered to the Govt. on
w
whose behalf the opium is licensed to be grown. While extremely small quantities of the extracted opium
w
may find way into the illicit market, these quantities as a percentage of the opium produced and
w
surrendered to the Govt. is almost negligible. During the past ten years, India’s stock-pile of opium which
is held with the two Govt. opium factories at Neemuch and Ghazipur has been increasing due to poor off-
take by the importing countries.
INTERNATIONAL CO-OPERATION
India realises that the flight against drug trafficking, which recognises no barrier, has to be fought
at the national and international levels. A solution to this problem can be found only with the co-operation
of the concerned countries. Similarly, there also exist arrangements between India and United States
through a Working Group on Narcotics for exchange of information on drug-related matters and also for
extending bilateral arrangements with Sri Lanka and Nepal to discuss matters relating to smuggling which
also include discussions on drug trafficking. At the regional level, India discusses drug with its neighbours
through the auspices of the SAARC. Also, India is a Member of the ESCAP Regional Plan wherein 15
countries of South-East Asia regularly exchange information on monthly basis. The ESCAP Plan was
organised by the Customs Co-operation Council and started operating from Jan. 1987. At the
international level, India is a signatory to the U. N. Convention on Narcotic Drugs of 1961 and the 1971
Convention on Psychotropic Substances. It is also a useful and active Member of the INTERPOL.
www.referencer.in
175
India has also established close liaison with many of the countries by permitting them to post
their Drug Liaison Officer, in India. These include officers of Drug Enforcement Administration of USA, H.
M. Customs of UK, RCMP of Canada and an officer from the Federal Republic of Germany. There is
fruitful exchange of intelligence to the mutual seizures have been effected by various agencies around the
World in places like Amsterdam, New York, Boston, Rome, Lagos and Tokyo. India has also been
providing to the international agencies like the I.N.C.B., INTERPOL, Colombo Plan Bureau, C.C.C., and
U. N. Division on Narcotic Drugs, etc. with the latest development with regard to drugs in India and the
effort made by the country to prevent trafficking in drugs.
LINKAGES BETWEEN NARCOTICS AND TERRORISM IN INDIA

Narco-terrorism is a recent development and refers to an unholy alliance between two of the most
destructive forces afflicting modern society – namely drug trafficking and terrorist activities both generally
engineered from across the Western border. India’s strategic location at the cross-road of traffic from the
two largest source regions of illegal production of opium and heroin namely, the Golden Crescent: and
Golden Triangle makes us an inevitable target of traffickers. Also there are reliable reports which indicate
the involvement of foreign-based drug traffickers in master-minding terrorist and other disruptive activities
n
in the country. The money generated by drug trafficking is used to fund the terrorist activities. The certain
r.i
seizure cases recently detected on Indo Pak border (Rajasthan, Gujarat and Punjab sectors), both illegal
drugs and arms have figured. In North-Eastern states, there are reports of linkages between insurgent
e
movement and narcotics smuggling. Links between the, traffickers and the LTTE and other insurgent
nc
movements are suspected.
The Department of Revenue, Ministry of Finance, in close consultation with the Ministry of
re
Welfare and Ministry of Family Welfare, Development a National Master Plan (NMP) for Drug Abuse
Control for the 7 year period (1994-2000) with UNDCP subject. A Inter-Ministerial Task Force for
fe
preparing the NMP was constituted by a Government order dated 27.5.1993. A team of consultants led by
.re
a former Director General, NCB with a small Secretariat funded by the UNDCP prepared the Master Plan
and circulated it to all participating Ministries /State for appropriate action.
Steps to implement this National, Master Plan have been initiated and these include-the area like
w
legal amendments, establishment of Special Courts, training of personnel and the necessary strategies
w
on Demand Reduction.
w
THE NARCOTIC CONTROL BUREAU AND DRUG ENFORCEMENT

The Narcotics Control Bureau was created by a notification dated 17.3.1986 under Section 3 (4)
of the Narcotic Drugs & Psychotropic Substances Act, 1985, to discharge the responsibilities of the
Department of Revenue for the administration of that Act.
The responsibilities include:
(a) Processing of policy inputs for the Government.
(b) Formulation of rules, notifications and executive instructions.
(c) Nodal co-ordination with other Ministries and State Governments in all matters connected
with preventive and public health aspects of drug abuse control.
(d) Detection, investigation and prosecution of drugs offences, particularly those having
international and inter-State ramifications.
(e) Nodal co-ordination with various other Central and state Government agencies, such as
Customs and Central Excise, Police, Drug Control etc. similarly engaged in investigation and
prosecution.
www.referencer.in
176
(f) Liaison and co-ordination with U. N. and all international agencies, and also with friendly
foreign countries in all matters relating to eradication of illicit traffic and drug abuse.
(g) Discharging of obligations imposed by U. N. and regional conventions and bilateral
agreements on the subject.
(h) Utilisation of financial aid from the UNFDAC by the proper implementation of the approved
programmes on drug abuse control.
The Narcotics Control Bureau was set up towards the end of 1986 with a Headquarters, five
zonal Offices at Mumbai. Calcutta, Delhi, Madras and Varanasi. The 6th zonal Office at Jodhpur and two
Regional Offices at Imphal & Cochin has since been created.
The policy is also determined by India’s international obligations flowing from:
(a) The U. N. Convention on Narcotic Drugs, 1961 as amended by the 1972 protocol;
(b) The U. N. Convention on Psychotropic Substances, 1971
(c) The U. N. Convention on illicit traffic, December, 1988.
India has ratified all the above three Conventions.
The Indian legislation on the subject consists of the following statues, namely;
a) The Narcotics Drugs and psychotropic substances Act, 1985, amended in 1989; and
n
b) The Prevention of Illicit Trafficking in Narcotic Drugs and psychotropic Substances Act’, 1988,
r.i
and ,
c) The Drugs and Cosmetics Act 1940 (as amended from time to time).
e
The Indian Constitution divides the legislative and executive responsibilities on different aspects
nc
of drug control and drug administration between the Union and the States. But Article 253 of the
Constitution empowers the Union Legislature to make a law for the whole or part of the territory of India
re
for implementing any treaty, agreement or convention with any other country or countries, or any decision
made at any international conference, association or other bodies. The Union Government can also give
fe
executive directions to the States on the subject. Thus a centralised and uniform legal framework for drug
.re
enforcement has been possible in spite of division of responsibility and multiplicity of organisations
involved in the task.
The strategy adopted for drug abuse control is six fold, and in conformity with the U. N. General
w
Assembly resolutions on the Subject. This incorporates:

w
a) Improvement of drug system to provide for medical use and prevent abuse;
w
b) Achievement of balance between demand and supply of drugs for legitimate purposes;
c) Eradication of, supplies from illicit sources;
d) Reduction of illicit drug traffic;
e) Reduction of demand for illicit drugs and prevention of inappropriate or illicit use of licit drugs;
f) Treatment, rehabilitation, and social re-integration of drug abusers.
INFRASTRACTURE FOR IMPLEMENTATION :

In India’s large and diverse federal polity of 25 States and 7 Union Territories, the implementation
of the above comprehensive programme has been organised through a varied and multi-dimensional
infrastructure. The functions and responsibilities can be divided in three broad groups:
a) Measures for control and regulation through licensing for medicinal and scientific uses,
b) Measures for enforcement of all prohibitions and for bringing to book all contravention;
c) Measures for preventive education, reduction of demand and treatment for de-addiction
and rehabilitation and social re-integration of drug abusers.
www.referencer.in
177
The Department of Revenue in the Ministry of Finance is the nodal agency at the apex, and is
responsible for responsible for co-ordination and for the overall administration of two of the main
enactment. The department exercises its :
a) Functions for co-ordination and overall administration of the laws through the Directorate
General, Narcotics Control Bureau.
b) Enforcement powers through the Director General, Narcotics Control Bureau (with field
formations), the Central Board of Excise and Customs and the Commissionerates and
subordinate formations thereunder covering the entire country, the Directorate of
Revenue Intelligence and Zonal Offices thereof, and several other executive
organisations; and
c) Licensing powers through a Narcotics Commissioner with an extensive field organisation;
Licensing powers for preparation manufactures and wholesale and retail distribution of narcotic
drugs has been conferred on the Excise Commissioners of the states and Union Territories. Drug
Controllers of States and Union Territories exercise similar powers in respect of permissible categories of
psychotropic substances. All these licensing organisations have monitoring functions, and also executive
powers for enforcement, detection, investigation and prosecution of all contravention. Besides, drug
n
offences having been recognised as heinous crimes, with causal connections with many other forms of
r.i
crimes, a major share of responsibility for enforcement has been taken up by the police forces under the
States, Union Territories as well as the Union Ministry of Home Affairs. This Ministry being in overall
e
charge of Union-States relations and internal security, plays a very vital role in the co-ordination of
nc
enforcement efforts through out the country.
The Union Ministry of Welfare and the corresponding departments of the States and Union
re
Territories formulate, promote, guide and control all measures for preventive education, counseling,
rehabilitation, social re-integration etc. in order to reduce demand and prevent illicit consumption of drugs.
fe
The Ministry and the State Departments of Health are responsible for institutionalised treatment in
.re
hospitals.
THREATS AND DIFFICULTIES:

w
Instances of illicit cultivation of opium and cannabis come to notice from time to time, and make-
w
shift laboratories for manufacture of heroin have also been detected in the country. There are also an
w
estimated number of about one million addicts, majority of whom are dependent on raw opium and
cannabis, which have been the traditional drugs of abuse in the rural areas. Addiction of Heroin, Hashish
and some psychotropic substances are mainly confined in metropolitan cities and industrial areas, and
the supplies to them mostly come from across the borders, from the spillover of the substantial
international drug from traffic from the Golden Crescent area in particular, for which India has become the
main transit route because of geographical location and its long porous land borders with that source
area. In fact, the volume of indigenous illicit production and its evil potential for spreading addiction in the
country are quite confinable, and they do not pose a major threat. It is the spillover of international traffic
mainly from the Golden Crescent at present and to a less but with potentials to grow to a larger extent,
from the Golden Triangle, that threatens India’s social defence and international obligations.
INSTRUCTIONS FOR CUSTOMS & PARAMILITARY ORGANISATIONS

The Narcotics Control Bureau is handling the work relating to co-ordination of anti-
smuggling/trafficking work. The Bureau is also to keep the international agencies posted with the details
of seizures effected, trends of smuggling, modus operandi etc. The Zonal Units of the Bureau also require
complete details of the cases detected in their jurisdictions to achieve better co-ordination and co-
www.referencer.in
178
operation. In view of this all the enforcement authorities are requested to send copies of Form-F (seizure
report), in respect of all narcotic drugs and psychotropic substances seizures to: -
1) The Deputy Director,
Narcotics Control Bureau,
R. K. Puram, West Block – I,
Wing – 5, 2nd floor,
New Delhi.
2) The Deputy Director,
Narcotics Control Bureau, having jurisdiction over the State in which the seizure is made.
2. This procedure may be followed for all cases detected. “Form F” in respect of all cases from this
date may be arranged to be sent to sent Narcotics Control Bureau immediately. Seizure report in “Form
F” need not sent in respect of seizures involving equal quantity of drugs, as below:
Name of the Drug Quantity seized
Opium Below 1 kg
Ganja Below 5 kgs
Hashish Below 500 gms.
n
Morphine Below 20 gms.
r.i
Heroin Below 10 gms.
Psychotropic Value less than
substances
e
Rs.1,000/-
nc
However, these seizures may be included in the Monthly Seizure Report.
3. In addition, in major cases, a telex message may be sent, briefly indicating place of seizure, date
re
of seizure, type of drug and quantity seized, person arrested, Passport Number, date, place of
issue and address, and short summery of the circumstances. Telex messages may be sent to
fe
Deputy Director, Narcotics Control Bureau, New Delhi.

.re
4. In respect of the foreigners arrested in India, Telexes may be invariably sent so that the Bureau
can keep the respective countries/Interpol/CCC etc. informed of the fact.
5. For statistical purposes, at the end of each month, a consolidated statement be prepared and
w
sent to the Bureau Hqrs. as also the concerned Zonal Units.

w
w
SAARC WORKSHOP ON NETWORKING ARRANGEMENT AMONG APEX NATIONAL

INSTITUTIONAL LAW ENFORCEMENT AGENCIES AND NGO'S WITH REGARD TO SUPPLY
CONTROL, DEMAND REDUCTION
SAARC drug Offence Monitoring Desk ( SDOMD ) is an apex organisation based at Colombo,
Sri Lanka, and works under the Rules and Regulations framed by the member SAARC countries.
The drug trafficking cases effected in India involving any persons from another SAARC country
and having international ramifications are to be reported to the SDOMD within 24 hours and not later
than 72 hours. The details of the case are to be reported in two forms viz. INITIAL REPORT FORM –
SAARC I. R. FORM and DETAIL REPORTING FORM – SAARC D. R. FORM. the covering letter
enclosing these forms should be addressed to the SUPERINTENDENT OF POLICE, DEPUTY
DIRECTOR, SAARC DRUG OFFENCES MONITORING DESK, POLICE NARCOTICS BUREAU, 3RD
FLOOR, NEW SECRETARIAT, COLOMBO -01, SRI LANKA. The relevant I. R. and D. R. Forms are
enclosed herewith for necessary action at your end.
[ Letter F. No. NCB/BZU/POLICY-9/97/848 Dtd. 18.04.2000, from Zonal Director, NCB, Mumbai ]
www.referencer.in
179
ANNEXURE 3
Sender : Date : Recipient :
Ref. No.
____________________________________________________________________________________
INITIAL REPORT FORM - SAARC I. R. FORM
____________________________________________________________________________________
1. Agency which effected the arrest :
____________________________________________________________________________________
2. Date of seizure and nature of offence :
____________________________________________________________________________________
3. Place of seizure or offence :
____________________________________________________________________________________
4. Type of drug : +Quantity seized :
Herbal Cannabis :
n
Cannabis Resin :
r.i
Opium :
Morphine :
Heroin :
e
nc
Cocaine :
L. S. D. :
re
Others ( specify ) :
+ Weight in Kilograms
fe
____________________________________________________________________________________
.re
5. Full identity particulars of Accused / Suspects / Associates * :

i. Full name with father's full name ( with aliases if any ) :
ii. Date of birth :
w
Country of birth :
w
Place of birth :
w
iii. Nationality :
iv. Sex : Male / Female
National identity card number :
Date of issue :
Place of issue :
* For cases implicating more than one person, please use the additional form
____________________________________________________________________________________
Cases implicating more than one person :
____________________________________________________________________________________
Full identity particulars of Accused / Suspects / Associates :
i. Full name with father's full name ( with aliases if any ) :
ii. Date of birth :
Country of birth :
Place of birth :
iii. Nationality :
www.referencer.in
180
iv. Sex : Male / Female

Date of issue :
Place of issue :
v. Travel documents :
Date of issue :
Place of issue :
vi. Complete residential address :
State :
District :
Police Station :
Village :
In the case of Towns / Cities :
House No. :
Street / Colony :
____________________________________________________________________________________
n
Date of Departure from last port :
r.i
Mode of Departure from last port :
Route of Departure from last port :
e
____________________________________________________________________________________
nc
The local connection or details where the drugs were obtained, with names, telephone numbers and
addresses of the supplier :
re
____________________________________________________________________________________
Any other matters of importance which would assist the investigation :
fe
____________________________________________________________________________________
.re
Signature and Seal of Designation

w
ANNEXURE – VII
w
____________________________________________________________________________________
w
Sender : Date : Recipient :

Ref. No.
____________________________________________________________________________________
DETAIL REPORTING FORM - SAARC D. R. FORM
____________________________________________________________________________________
1. Agency which effected the arrest :
____________________________________________________________________________________
2. Type of drug : +Quantity seized :
Herbal Cannabis :
Cannabis Resin :
Opium :
Morphine : +( Weight in Kilograms)
Heroin :
Cocaine :
L. S. D. :
Others ( specify ) :
www.referencer.in
181
3. Date of seizure :
Place of seizure :
____________________________________________________________________________________
4. Marking, labeling and Trade Marks :
____________________________________________________________________________________
5. Means of transport used :
____________________________________________________________________________________
6. Mode of concealment :
____________________________________________________________________________________
7. Origin of the drug :
Route of the drug :
____________________________________________________________________________________
8. Where drug was produced :
____________________________________________________________________________________
9. Place where drug was obtained – Full particulars of the supplier of the drugs :
____________________________________________________________________________________
n
10. Place where drug was to be sent – Full particulars of the receiver of the drugs :
r.i
____________________________________________________________________________________
11. Articles / equipment seized :
e
____________________________________________________________________________________
nc
12. Persons implicated : Accused / Suspects / Associates *
Full name of suspects with aliases if any :
re
Full name of suspects father with aliases if any :

Date of birth :
fe
Country of birth :
.re
Place of birth :
Nationality :
Travel documents held by the suspect :
w
Date of issue :
w
Place of issue :
w
Sex : Male / Female

Date of issue :
Place of issue :
Profession :
Complete residential address :
State :
District :
Police Station :
Village :
In the case of Towns / Cities :
House No. :
Street / Colony :
____________________________________________________________________________________
* in cases implicating more than one person, please use the additional form
www.referencer.in
182
13. Part played :

____________________________________________________________________________________
14. Copies of photographs :
Side ( Right ) Side ( Left )

________________________ _________________________
________________________ __________________________
Front
__________________________
___________________________
n
____________________________________________________________________________________
r.i
15. Copies of fingerprints : To be annexed please ( Standard finger printing ink to be used )
____________________________________________________________________________________
16. Whether arrested, detained or at-large :
e
nc
____________________________________________________________________________________
17. Summary of the case :
re
____________________________________________________________________________________
fe
.re
Signature and seal of Designation
NARCOTIC DRUGS & PSYCHOTROPIC SUBSTANCES ACT 1985

w
w
Salient Features
w
Three Central Enactments, the Opium Act, 1857, the Opium Act, 1878 and the Dangerous Drugs
Act, 1930, prior to 1985 – The Opium Act of 1857, inter-alia, dealt with cultivation of poppy on account of
Government. The Opium Act of 1878 dealt with possession, transport, inter-state movement and sale of
opium. The Dangerous Drugs Act was a more comprehensive legislation whose objective was to control
ands suppress contraband trafficking in the abuse of opium, hemp, coca leaf and their derivatives. The
two International Conventions, namely, the Single Convention on Narcotic Drugs, 1961 and the
Convention, on Psychotropic Substances, 1971 placed several obligations on the signatory states.
In order to fulfil these obligations and also to bring in a very comprehensive and stringent
legislation, the act known as the Narcotic Drugs and Psychotropic Substances Act, 1985 has been
passed on 16th September, 1985 and made effective from 14th November, 1985. The N.D.P.S. Act, 1985
has been amended by the N.D.P.S. (Amendment) Act, 1988 which takes effect from 29th May, 1989.
Objective:
The objective of the Act is to make stringent provision for the control and regulation of operations
relating to Narcotic Drugs and Psychotropic Substances.
www.referencer.in
183
Measures:
The following measures are sought to be taken by the Central Government in terms of Section 4:
(1) For preventing and combating abuse of narcotic drugs and psychotropic substances and illicit
traffic therein.
(2) For co – ordination of actions by various Central Government officers, State Governments and
other authorities.
(3) For meeting the obligations under the international Conventions.
(4) For assistance to the concerned authorities in foreign countries and concerned international
organisations.
(5) For identification, treatment, education, after care, rehabilitation; and social re-integration of
addicts.
(6) Any other measures including setting up of an authority or a hierarchy of authorities for effective
implementation of the Act.
(7) Setting up of a advisory committee.
Definitions
The Section 2 of the Act gives the definitions of various terms used in the Act. These definitions
n
help us in understanding the coverage of the Act.
r.i
Some of the important definitions are given below in gist: -
“Narcotic Drugs” means, according to this Act, coca leaf, cannabis (hemp), opium, poppy straw
and includes all manufactured drugs (Section 2 (xiv)).
e
nc
“Manufactured drug” means all coca derivatives, medicinal cannabis, opium derivatives, poppy
straw concentrate and any other narcotic substance which the Central Government may notify (Section 2
re
(xi)).
“Psychotropic Substances” means any; substance, natural or synthetic, or any natural material or
fe
any salt or preparation of such substance or material included in the list of psychotropic substances
.re
specified in the attached Schedule (Section 2 (xxii)).

“Coca leaf” means the leaf of the coca plant from which are ecgonine, cocaine and other
ecgonine alkaloids have been removed (Section 2 (vi)).
w
“Coca derivative” means (a) cocaine i.e. methylester of benzoylecgonine and its salts; (b) crude
w
cocaine i.e. any extract of coca leaf which can be used, directly or indirectly for the manufacture of
w
cocaine; (c) ecgonine and all the derivatives of ecgonine from which it can be recovered and (d) all
preparations containing more than 0.1 per cent of cocaine (Section 2 (v)).
“Coca plant” means the plant of any species of the genus erythroxylon (Section 2 (vii)).
“Cannabis (hemp)’ means (a) charas i.e. the separated resin in whatever form, whether crude or
purified and also includes concentrated preparation and resin known as hashish oil or liquid hashish; (b)
ganja, i.e. the flowering or fruiting tops of cannabis plant excluding the seeds and leaves when not
accompanied by the tops and (c) any mixture with or without any neutral material of above forms of
cannabis or any drink prepared there from (Section 2 (iii)).
“Opium means” (a) the coagulated juice of the opium poppy and (b) any mixture, with or without
any neutral material of the coagulated juice of the opium poppy containing more than 0.2 per cent of
morphine (Section 2 (xv)).
“Opium derivative” means (a) medicinal opium i.e. adapted for medicinal use as per Indian or
other Pharmacopia; (b) prepared opium i.e. opium transformed for smoking and the dross or residue
remaining after opium is smoked; (c) morphine, codeine, thebaine and their salts; (d) diacetylmorphine,
www.referencer.in
184
i.e. dia-morphine or heroin and its salts (Section 2 (xvi)). (e) all preparations containing more than 0.2 per
cent of morphine or containing any diacetyl morphine.
“Opium poppy” means the plant of the species papaver somniferum L and any plant of any other
species of papaver which the Central Government may notify (Section 2 (xvii)).
“Poppy straw” means all parts (except the seeds) of the opium poppy after harvesting whether in
their original form or cut, crushed or powdered (Section 2 (xviii)).
“Poppy straw concentrate” means the material arising when poppy straw has entered into a
process for the concentration of its alkaloids (Section 2 (xix)).
“Controlled Substance” means any substance which the Central Government may having regard
to the avoidable information as to its possible use in the production or manufacture of narcotic drug or
Psychotropic Substances or to the provisions of any International Convention by Notification in the official
gazette declare to be a Controlled Substance (Section 2 (vii) a).
Important Sections:
Section 18 relates to Punishment in relation to Opium
n
Section 20 relates to Punishment in relation to Cannabis i.e. Charas Ganja Hashish etc.
r.i
Section 22 relates to punishment in relation to Psychotropic Substances
Section 23 relates to punishment in relation to Import/Export of drugs
e
Section 24 relates to punishment in relation to external dealing of drugs.
nc
Section 42 Requires to reduce in writing the information received and to put it up to the
immediate superior officer immediately. The search seizure and arrest under this section must be from
re
sunrise to sunset in non public places.

Section 43 Pertains to search seizure and arrest in public places. Officer must have a reasonable
fe
belief to take action and mere suspicion will not do.

.re
Section 50 The accused must be asked if he wish to be searched before a Gazetted Officer or a
judicial magistrate. This is the right of the accused and cannot be denied. This choice should be given in
writing. Oral saying is not sufficient. The accused must write or sign the memo where this option was
w
given to express his choice. This fact should also be incorporated in the panchanama.
w
Section 52 The accused must be given the grounds of arrest in an arrest memo before arrest
w
and acknowledgement obtained.

Section 55 The officer in charge to receive the seized articles and the goods seized must affix his
seal on these items in addition to the seal of the seizing unit/officer. The samples sealed must be proper
and no tampering should be done, from the time it is sealed, till it is handed over to the chemical
examiner.
Section 57 The officer making a seizure or arrest under the NDPS Act must within 48 hours send
a full report to his immediate superior officer. This is a mandatory requirement.
Section 67 This section empowers an officer to record the voluntary statement of any person
concerned with the investigation.
The provisions given above are mandatory and will have to be complied with. Failure to do this
will vitiate the case the case will fail. Hence these requirements must be complied with properly.
GIST OF SOME IMPORTANT PROVISIONS OFTHE N.D.P.S. ACT

1. AUTHORISED OFFICERS: Section 3 deals with list of authorised officers who are to take
measures for preventing and combating the misuse of narcotic drugs and substances.
www.referencer.in
185
2. PROHIBITIONS: Section 8 prohibits the production, manufacture, possession, sale, use,

consumption, purchase transportation, ware housing, import inter state, export inter state, of ganja.
3. PUNISHMENTS: Section 15 to 29 deals with punishments for contravention of the NDPS Act.
Section 15 deals with punishment for contravention in relation to poppy straw.
Section 16 deals with punishment for contravention in relation to coca plant and leaves.
Section 17 deals with punishments for contravention in relation to prepared opium.
Section 18 is regarding punishment for contravention in relation to opium poppy and opium.
Section 19 deals with punishment for embezzlement of opium by cultivators.
Section 20 deals with punishment for contravention in relation to cannabis plant and cannabis.
Section 21 deals with contravention in relation to manufactured drugs and preparations
Section 22 deals with punishments for contravention in relation to psychotropic substances.
Section 24 deals with punishment for external dealing in narcotics drugs and psychotropic
substances in contravention of section 12. (Restriction over external dealing in narcotic drugs and
psychotropic substances)
Section 25 Deals with punishment for allowing premises etc. to be used for commission of
offences.
n
Section 25 A – deals with punishment for contravention of order made under section 9A (Power
r.i
to control and regulate controlled substances)
Section 26 deals with punishment for certain Acts by licensee or his servant.
4.
e
EXPORT / IMPORT : Section 23 deals with punishment for import/export or transhipment of
nc
narcotics and psychotropic substances.
5. POSSESSION: Section 27 deals with possession of narcotic
re
6. FINANCING: Section 27A deals with financing of illicit drugs and harbouring offenders.
7. ABETMENT: Section 29 deals with abetment and criminal conspiracy. What is stated is
fe
irrespective of section 116 of IPC.

.re
8. PREPARATION :Section 30 deals with preparation to do or omit to do any act which constitutes
an offence punishable under section 15 to 25 (both inclusive) of NDPS Act. It provides for punishment for
preparation to commit an offence which is half the punishment for committing of the offence (both
w
imprisonment and fine).

w
9. ENHANCEMENT OF PUNISHMENT : Section 31 provides for enhancement of punishment for

w
certain offences which is committed after earlier conviction. If under section 15 to 19, CL (ii) of section 20
and section 21 to 25, punishment upto 15 years RI extendable to 30 years and fine of 1.5 lakhs to 3
lakhs. If earlier conviction was under 10 years RI and fine of Rs.one lakh.
10. DEATH PENALTY : Section 31A imposes a death penalty for certain offences committed after
previous conviction under section 15 to 25 or 27A. If convicted again for commission, attempt, abetment
or criminal conspiracy to commit an offence relating to the table of 14 drugs, or financing directly or
indirectly, the production, manufacture, possession, transportation, import/export, transhipment or
narcotics drugs or substances, then the penalty would be death penalty.
11. OFFENCE OF GENERAL NATURE :Section 32A deals with the general nature of the offence. It
says that if no penalty is imposed under any other section then for such offences penalty will be imposed
under 32A, which provides for imprisonment for six months and/or fine.
12. PERSON BELOW 18 YEARS : Section 33 states that the provisions of section 360 of Cr. P.C. and
Probation of offenders Act, 1958, will not apply unless the person is less than 18 years of age, if the
offence is punishable under section 26 or 27.
13. SECURITY FOR GOOD BEHAVIOUR : Section 34 deals with the security from any person by
executing a bond with or without surety for abstaining from committing any offence under chapter IV.
www.referencer.in
186
14. OFFENCE COGNIZABLE : Section 37 all offence under the NDPS act is cognizable and non-
bailable.
15. OFFENCE BY COMPANY : Section 38 an offence under Chapter IV i.e. from section 15 to 32 by a
company, then all persons in-
16. charge of or responsible for the conduct of business of the company as well as the company will be
liable to be held guilty.
17. POWER OF COURT : Section 39 deals with the power of the court to release certain offenders,
having regard to the age, character, antecedents, or physical or mental conditions of the offender.
18. POWER TO ISSUE WARRANT: Section 41 gives the power to issue warrant and search
authorisation to Supdt. of Customs and central excise, appraisers, to search whether by day or night
building conveyance or place. They may send their subordinate officers for the purpose with the
authorisation. However, the Preventive, excise officers or DRI or other intelligence officers of the revenue
department can record statements of the accused and make arrest.
19. OFFICERS EMPOWERED: SECTION 42 – Section 42 authorises the Preventive office, examiner,
central excise or DRI officers etc. to search of premises, Seize the drugs, detain any person or arrest the
person who has committed the offence. Provided he has reason to believe from personal knowledge, or
n
information given by any person taken down in writing that any narcotics in respect of which an offence
r.i
punishable under chapter IV has been committed or evidence of such commission is concealed, then he
can do the above action. Further the action should be from sun rise to sun set if the search party is not
e
accompanied by a gazetted officer. The subordinate officer can search and seize after sunset and in non-
nc
public places provided he records his reasons as to why the action could not wait till the coming of the
gazetted officer. The urgency of the situation should be noted in file and put up to superior officer. In case
re
of urgency, such subordinate offices can enter, search, seize and arrest without a warrant or
authorisation, if he feels that the evidence of the case will be concealed or offender may escape.
fe
20. ACTION IN PUBLIC PLACES: Section 43 empowers the aforesaid officers to search, seizure and
.re
arrest in public place. A bus or a train is also considered as a public place.

21. SUPRUTHNAMA: Section 45 empowers an officer to give supruthnama to the person incharge, if
the goods cannot be taken over. Like the crop of ganja or hashish which cannot be gathered, a
w
supruthnama can be given to the owner of the land etc.

w
Section 46 enjoins upon the land owner to inform about illegal cultivation of the narcotics
w
substances.
21. SEARCH OF CONVEYANCE: Section 49 gives the power to stop and search a conveyance.
22. MANDATORY CONDITION FOR PERSONAL SEARCH: Section 50 is a very important. The
conditions given therein is mandatory. The accused to be searched in person should be given the
opportunity to be taken before a gazetted officer or a judicial magistrate and this fact has to be taken in
writing with the signature of the accused. This fact is also to be incorporated in the panchanama.
23. PROVISIONS FOR WARRANT: Section 51 provides that the provisions of the Cr. P.C. will apply
to warrants, arrest and seizure under the NDPS. Hence the legal requirement for these must be fulfilled.
24. GROUNDS OF ARREST: Section 52 provides that all persons arrested under section 41,42,43
or 44 should be told about the grounds of arrest and a arrest memo should be given to the arrested
person and his signature to be obtained. If he does not understand the language i.e. English he should be
explained in the language known and suitable endorsement taken on the memo. The arrested person
shall be medically examined and deposited in the police station. The accused person should be produced
before the magistrate without delay, However, not latter than 24 hours from the time of arrest. The arrest
memo should show the date and time of arrest. If the next day is holiday then the accused should be
www.referencer.in
187
produced before a holiday magistrate. The arrested person should be allowed to contact his relative or
lawyer and this fact should be endorsed on the office copy of he arrest memo.
25. OFFICERS POWERS: SECTION 53 The officer of the central excise, customs DRI etc. who are
empowered under this Act will have the same power of the officer in-charge of the police station.
26. RELEVANCY OF STATEMENT: Section 53 A deals with relevancy of the statement given
before the officers empowered under section 53, such statement given in the course of the inquiry or
proceedings is admissible.
27. PRESUMPTION: Section 54 deals with presumption of commission of an offence, from the
possession of illicit article like utensils specially made for manufacture of drugs, materials, chemicals
which undergo any process to manufacture the narcotics substance.
28. TAKING OVER OF SEIZED ARTICLES : Section 55 deals with the duty of police to take charge
of such articles shown in section 54 and the same should be sealed and kept in proper order.
29. ASSISTANCE OF OTHER OFFICERS : Section 56 cast obligation on all officer mentioned in
section 42 to assist each other.
30. REPORT TO SR. OFFICER : Section 57 is very important. It casts a mandatory duty on the
officer who arrest or seizes any narcotics, to make a report in writing about the same to the immediate
n
superior officer.
r.i
31. VEXATIOUS ARREST : Section 58 provides for punishment for vexatious entry, search, seizure
or arrest.
e
32. PUNISHMENT TO OFFICERS : Section 59 deals with the punishment for officers failing in their
nc
duty.
33. CONFISCATION : Section 60 deals with the confiscation of the goods, articles and conveyance used
re
for the manufacture of the drugs.

34. CONCEALED GOODS: Section 61 deals with the confiscation of the goods used for concealing
fe
the drugs.
.re
35. SALE PROCEEDS: Section 62 deals with the confiscation of the sale proceeds of illicit drugs
and narcotic substances.
36. PROCEDURE OF CONFISCATION : Section 63 deals with the procedure for confiscation of
w
goods etc.
w
37. IMMUNITY : Section 64 deals with the power of the court to tender immunity from prosecution
w
like approvers and volunteering drug addict.

38. PRESUMPTION OF DOCUMENTS : Sec. 66 deals with presumption of documents in certain cases,
if produced by prosecution against the accused then it will be presumed to be correct unless otherwise
proved.
39. RECORDING STATEMENTS : Section 67 gives the power to officers mentioned under section 42 to
examine any person or record statement. This is similar to the provision under section 108 of the
Customs Act.
40. NON DISCLOSURE OF SOURCE : Section 68 gives the immunity to the officer from disclosing the
source of information.
41. FORFEITURE OF PROPERTY : Section 69 gives a protection to officers for the action done in good
faith.
42. GOOD FAITH : Section 69 gives a protection to officer for the action done in good faith.
43. RECOVERY : Section 72 deals with the recovery of amount due to the government.
44. BAR OF JURISDICTION : Section 73 no civil court shall entertain any suit or proceedings against
the decision of any authority or officer under this Act.
www.referencer.in
188
45. POWER TO MAKE RULES : Section 76 & 78 gives the Central and State Govt. the power to make
rules. All rules so made should be placed before the parliament, who alone shall pass the same, then it
shall be effective.
46. APPLICATION OF CUSTOMS ACT : Section 79, the restriction imposed under the NDPS Act will be
restrictions under the Customs Act.
47. APPLICATION OF DRUGS & COSMETIC ACT : Section 80, rules made under the NDPS Act will
also be applicable in addition to the Drugs & Cosmetic Act. 1940.
IMPORTANT PROVISIONS OF “THE NARCOTIC DRUGS & PSYCHOTROPIC SUBSTANCES RULES,

1985”.
Nrcotic drugs and substances
Rule 32 : Export of Opium – The export of opium is prohibited save when the export is one behalf of the
Central Government.
Rule 35 : General prohibition – The manufacture of crude cocaine, ecgonine and its salts and of
diacetyl morphine and its salts is prohibited.
Rule 36 : Manufacture of natural manufactured drugs : (1) The manufacture of cocaine and its salts is
n
prohibited save the manufacture of cocaine hydrochloride by the chemical staff employed under the
r.i
Central Board of Excise and Customs from confiscated cocaine.
(2) The manufacture of morphone, codeine, dionine, thebaine, dihydrocodeinone, dihydrocodeine acetyl
dihyfrocedeine, acetyl dihydrocodeinone,
e dihydromorphine, dihydromorphinone,
nc
dihydrohydroxycodeinone, pholcodine and their respective salts is prohibited save by the Government
Opium Factory.
re
(3) The manufacture of medicinal hemp shall be under a licence granted by the State Government on
payment of such fees and in accordance with such conditions as may be prescribed by that Government
fe
in this behalf.
.re
Rule 37 : Manufacture of synthetic manufactured drugs – (1) The manufacture of manufactured drugs
notified under sub-clause(b) of Cl.(xi) of Sec. 2 of the Act (hereafter referred to as the drug) is prohibited
save under and in accordance with the conditions of a licence granted by the Narcotics Commissioner or
w
such other officer as may be authorised by the Central Government in this behalf, in Form No.3 appended
w
to these rules.
w
(2) A fee of rupees fifty shall be payable in advance to the Central Government for each licence issued
under this rule or for renewal thereof.
Rule 53 : General prohibition – Subject to the other provisions of this Chapter, the import into and
export out of India of the narcotic drugs and psychotropic substances specified in Schedule I is prohibited.
Rule 53A. (1) Subject to the provisions of sub-rule (2), no person shall export any of the narcotic drugs or
psychotropic substances or preparation containing any of such narcotic drugs or psychotropic substances
specified in Schedule IV to the countries or to the region of such country specified therein.
(2) Notwithstanding anything contained in sub-rule(1) above, the Narcotics Commissioners may
authorise export of specified quantities of such narcotic drug or psychotropic substance or preparation
containing such narcotic drugs or psychotropic substance on the basis of special import licence issued by
the Competent Authority of the country mentioned in [Sch. II] which intends such import by way of
issuance of special import licence. The shipment of the consignment so allowed shall be accompanied by
a copy of such special import licence duly endorsed by the Narcotics Commissioner.]
Rule 54. Import of opium, etc. – The import of –
(i) opium, concentrate of poppy straw, and
www.referencer.in
189
(ii) morphine, codeine, thebaine, and their salts is prohibited save by the Government Opium
Factory.
Rule 55. Application for import certificate. – (1) Subject to rule 53, no narcotic drug, or psychotropic
substance, specified in the Schedule of the Act shall be imported into India without an import certificate in
respect of consignment issued by the issuing authority in Form 4 appended to these rules.
(2) The importer applying for an import certificate under sub-rule (1) in relation to narcotic drug
shall submit along with his application the original or certified copy of the excise permit issued by the
concerned State Government.
(3) The application for the import certificate shall state such details as may be specified by the
Narcotics Commissioner.
Rule 57. Transit. – Subject to the provisions of Sec. 79 of the Act and rule 53, no consignment of any
narcotic drug, or psychotropic substances specified in [Schedule of the Act], shall be allowed to be
transited through India unless such consignment is accompanied by a valid export authorisation in this
behalf, issued by the Government of the exporting country:
Provided that the provisions of this rule shall not apply to the carriage by any ship or aircraft, of
small quantities of such narcotic drugs and psychotropic substances which are essential for treatment of,
n
or medical aid to, any person on board the ship or aircraft.
r.i
Rule 60. Transhipment. – Subject to the provisions of Sec. 79 of the Act and rule 53, no consignment of
narcotic drug, or psychotropic substance specified in [Schedule of the Act], shall be allowed to be
e
transhipped at any port in India save with the permission of the Commissioner of Customs.
nc
Rule 61. Procedure for transhipment.- The Commissioner of Customs while allowing any consignment
of narcotic drug, or psychotropic substances, specified in [Schedule of the Act], to be transhipped shall,
re
inter alia, satisfy himself that the consignment is accompanied by a valid export authorisation issued by
the exporting country.
fe
Rule 62. Diversion of consignment. – (1) Commissioner of Customs shall take all due measures to
.re
prevent the diversion of such consignment to a destination other than that named in the aforesaid export
authorisation.
(2) (a) The Commissioner of Customs may permit diversion of such a consignment to a country
w
other than that named in the accompanying copy of the export authorisation subject to the production of
w
export authorisation issued by the issuing authority as provided under rule 58, as if the diversion were an
w
export from India to the country or territory of new destination.

Rule 63. Prohibition of import and export of consignments through a post office box. etc. – The
import or export of consignments of any narcotic drug or psychotropic substances through a post office
box or through a bank is prohibited.
Psychotropic Substances
Rule 64. General prohibition. – No person shall manufacture, posses, transport, import inter-State,
export inter-State, sell, purchase, consume or use any of the psychotropic substances specified in Sch. I.
Rule 65. Manufacture of psychotropic substances. – (1) Subject to the provisions of sub-rule (2), the
manufacture of any of the psychotropic substances other than those specified in Sch. I shall be in
accordance with the conditions of a licence granted under the Drugs and Cosmetics Rules, 1945
(hereinafter referred to as the 1945 Rules) framed under the Drugs and Cosmetics Act,1940 (23 of 1940),
by an authority in charge of Drugs Control in a State appointed by the State Government in this behalf.
(2) The authority in charge of Drugs Control in a State (hereinafter) referred to as the Licensing
Authority) shall consult the Drugs Controller (India) in regard to the assessed annual requirements of
each of the psychotropic substances in bulk form referred to in sub-rule(1) in the country and taking into
account the requirement of such psychotropic substances in the State, the quantity of such substance
www.referencer.in
190
required for supply to other manufacturers outside the State and the quantity of such substance required
for reasonable inventory to be held by a manufacturer, shall specify, by order, the limit of the quantity of
such substance which may be manufactured by the manufacturer in the State.
(3) The quantity of the said psychotropic substance which may be manufactured by a licencsee in
a year shall be intimated by the Licensing Authority to the licensee at the time of issuing the licence.
SCHEDULE I
(See rules 53 and 64)
I. Narcotic Drugs
1. Coca Leaf
2. Cannabis (Hemp)
3. (a) Acetrophine
(b) Diacetylmorphine (Heroin)
(c ) Dihydrodesoxymorphine (Desomorphine)
(d) Etrophine
(d) Ketobemidone
n
and their salts, preparations, admixtures, extracts and other substances containing any of these
r.i
drugs.
II. Psychotropic substances
e
____________________________________________________________________________________
nc
Sl. International Other non-proprietary Chemical name
No. Non-proprietary names
re
Names
____________________________________________________________________________________
fe
1. METHAQUALONE 2-Methyl-3-0-toly-4- (3H) quinazolinone.

.re
2. AMFEPRAMONE 2-(Diethylamino) propiophe-none

3. BENZPHETAMINE N-Benzyl-N-dimethyl-phenethyl amine.
4. BRONAZEPAM 7-Bormo-1, 3-dihydro-5-(2-pyridyl)-2H-1,
w
4-benzodiazepin-2-one.
w
5. CANAZEPAM 7-Chloro-1, 3-dihydro-3 hydroxy-1

w
methyl-5-phenyl-2H-1, 4-bensodiazepin-
2-one dimethylcarbamate (easter).
6. [* * *]
7. [* * *]
8. CLORAZEATE 7-Chloro-2, 3-dihydro 2-oxo-5pheyl, -2-
IH, 4-benzodiazepine-3 carboxylic acid.
9. CLOTIAZEPAM 5-(O-Chlorophenyl-7 ethyl-1, 3-dihydro-
1 methyl-2H-theno [2, 3-e] 4-diazepin-2-
one.
10. CLOXAZOLAM 10-Chloro-11b-(o-chlorophenyl)-2,3,7,
11b-tetrahydrooxa-zolo-[3, 2-d] [1,4,]
bensodiazepin-6 (5H)-one.
11. DELORAZEPAM 7-Chloro-5-(o-chloro-phyenyl)-1,3-
dihydro-2H-1, 4-benzodiazepin-2-one.
12. ESTAZOLAM 8-Chloro-6-phenyl-4-H-s-triazo-Io[4,3,-a]
[1,4] benzodiazepine.
www.referencer.in
191
13. ETHINAMATE 1-Ethynylcyclo-hexanol carbamate.

14. ETHYLLOFLAZEPATE Ethyl 7-Chloro-5-(o-flourophenyl-2-3-
dihydro-2 oxo-1HO1, zociazepine-3-
carboxylate.
15. FLUDIAZEPAM 7-Chloro-5-(o-fluropheny-1, 3-dihydro-1-
methyl-2H-1, 4-bebennozodiazepin-2-
one.
16. FLUNITRAZEPAM 5-(o-flurophenyl)-1, 3-dihydro-1-methyl-
7-nitro, 2H-1 4-benzodizcepin-2-one.
17. HALOXAZOLAM 10-Bromo-11b-(o-flurophenyl)-2,3,7, 11b
-tetrahydro-oxazolo [3, 2-d] [1,4]
bensodiazepin-6 (5H)-one.
18. KETAZOLAM 11-Chloro-8, 12-b-dihydro-2, 8-dimethyl-
12b-phenyl-4H-[1,3]- oxazino-[3,2-d]
[1,4] bensodiazepine-4,7 (6H)-dione.
19. LEFTAMINE SPA (-)-1-Dimethylamino-1,2-diphenyl et-
n
hane.
r.i
20. LOPRAZOLAM 6-(o-Chlorophenyl)-2,4-dihydro-2-[(4-
methyl-1-piperzynyl) methylene]-8-nitro-
e 1H-imidaze [1,2-a] [1,4] benzodiazepin-
nc
lone.
21. LORMETAZEPAM 7-Chloro-5-(o-Chloro-phenyl) 1,3-
re
dihydro-3-hydroxy-1-methyl-2H-1, 4-
benzodiazepin-2-one.
fe
22. MAZINDOL 5-(p-chlorophenyl)-3,5-dihydro-3 H-

.re
imidazo [2,1-o] isoindol-5-ol.

23. MEDAZEPAM 7-Chloro-2 3-dihydro-1-methyl-5-phenyl-
H-1, 4-benzodiazepine.
w
24. METHYPRYLON 3, 3-Diethyl-5-methyl-2, 4-piperidine-

w
dione.
w
25. NIMETAZEPAM 1, 3-Dihydro-1-methyl-7-nitro-5-phenyl-

2H-1, 4-benzodiazepin-2-one.
26. OXAZOLAM 10-Chloro-2, 3, 7, 7, 11 b-tetrahydro-2-
methyl-11 b-phenyloxazolo [3, 2-d] [1 4]
benzodiazepin-6-(5H)-one.
27. PHENDIMETRAZINE ( + ) 3, 4-Dimethyl-2-phenylmorpholine.
28. PHENTERMINE -Dimethylphen-ethelamine.
29. PINAZEPAM 7-Chloro-1, 3-dihydro-5-phenyl-1-(2-
propynyl) 2H-1, 4-benzodiazepin-2-one.
30. PIPRADROL 1, 1-Diphenyl (2-piperidyl)-methanol.
31. PRAZEPAM 7-Chloro-1 (cyclo propylemthyl-1) 1, s-3-
dihydro-5-phenyl-2H-1, 4-benzodiazepin
-2-one.
32. TEMAZEPAM 7-Chloro-1, 3-dihydro-3-hydroxy-1-
methyl-5-phenyl-2H-1, 4-benzodiazepin-
2-one.
www.referencer.in
192
33. TETRAZEPAM 7-Chloro-5 (cyclohexen-1-yl) 1, 3-

dihydro-1-methyl-2H-1, 4 benzodiazepin
-2-one.
33-A. ETRYPTAMINE [3-(2-aminobutyl indole]
33-B. METHCATHINONE [2-(methylamino)-1-phenylpropan-1-one]
33-C. ZIPEPROL [ a (a-methoxybenzyl)-4-(B-methoxy-
phenethyl)-1-piperazlneethanol]
33-D. AMINOREX (2-amino-5-phenyl-2-oxazoline)
33E. BROSOCARB [2-Bromo-4-(O-chlorophenyl)-9-methyl-6
H-thieno (3,2-1)-triazolo [4, 3-a] [1, 4]
Diazepine]
33-F. MESOCARB [3-a (1-methphenethyl)-N-
(phenylcarbamoyl) Sydnoneimine].
34. SALTS AND
PREPARATIONS
OF ABOVE
n
r.i
SCHEDULE II
e
FORM No. 4
nc
(See rule 55)
Official Seal of the Issuing
re
Authority
fe
S. No. ………………………
F. No. ……………………….
.re
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
w
(Department of Revenue)
Certificate of Official Approval of Import
w
(The Narcotic Drugs and Psychotropic Substances Rules, 1985)

w
………(The Issuing Authority)…… being the authority empowered to issue Import Certificate under the
Narcotic Drugs and Psychotropic Substances Rules, 1985 hereby approves the importation into India of
the consignments containing narcotic drugs or psychotropic substances as specified in the Schedule
below by:
M/s……………………………..
From M/s, …………………………………., subject to the condition that the consignment
containing such drugs or substances shall be imported before …………………
by…………….to………(airport/seaport)………….. in India.
In approving the importation of the consignment containing the said drugs or substances
specified …………….(Issuing Authority) is satisfied that it is required solely for medical and scientific
purposes.
Address of the Issuing Authority Designation of the Issuing Authority
Schedule specifying the narcotic drugs or psychotropic substances contained in the consignment
to be imported.
www.referencer.in
193
1. This document is for ……………..(The authority to whom and the purpose for which it is being
sent to be indicated).
2. The certificate is not valid unless it bears the Official Seal of the Issuing Authority on the top
right hand corner.
Official Seal of Issuing Authority
S. No. ……………………………
F. No. ……………………………
FORM No. 3
(See rule 37)
Licence For Manufacture of Manufactured Drugs
Licence No…………………………….Date of issue……………………………………………….is

hereby licensed to manufacture the following manufactured drugs on the premises situated at …………
n
Name of drug Quantity
r.i
(1)
(2)
e
nc
2. The licence shall be in force from ……………..to……………………..
re
3. The licence is subject to the conditions stated below and to such other conditions as may be
specified in the rules for the time being in force under the Narcotic Drugs and Psychotropic Substances
fe
Act, 1985 (61 of 1985).

.re
Signature ………………….
Designation ………………….
Date ……………
w
w
w
Conditions of Licence
1. This licence is not transferable.

2. This licence and any certificate of renewal in force shall be kept on the approved premises
and shall be produced at the request of an officer detailed for the purpose by the Licensing Authority.
3. The licensee shall not manufacture or keep the drug or the materials used for the manufacture
of the drug at any other place except his place of business.
4. The licence shall ensure manufacture of the drug to the standard and specifications laid down
by or under the Drugs and Cosmetics Act, 1940 (23 of 1940).
5. The licensee, if he desires the renewal of his licence, shall apply to the Licensing Authority in
the form specified for such renewal, at least thirty days before the expiry of his licence.
6. The licensee shall inform the Licensing Authority in writing in the event of any change in the
constitution of the firm operating under the licence. Where any change in the constitution of the firm takes
place, the current licence shall be deemed to be valid for a maximum period of the three months from the
date on which the change takes place or the normal expiry of the licence whichever is earlier name of the
firm with the changed constitution.
www.referencer.in
194
OTHER IMPORTANT ASPECTS:

1. Statement of co-accused cannot be used unless corroborated by independent evidence.
2. Stock witness should be avoided. Choice of panache witness should be proper and generally
from the place around the seizure or search. Absence of independent witness will adversely
affect the prosecution for non compliance of the requirement of section 52 and 55 of NDPS
3. SAMPLES: Refer to Standing order No. 1/88 and 1/89. (Given below)
Samples drawn from seized lot should be proved to be the same which was sent to the analyst. Further
while drawing the panchanama; the details of sealing the drugs and the sample for testing, like seal
Number or logo of the department on the seal, should be incorporated in the panchanama. The receipt
obtained from the laboratory should link the sample drawn from the seized goods. For this the seal affixed
on the sample should be shown on the receipt and an endorsement made by the receiver of the sample,
that the seal was found intact. Care should be taken that the seal is not damaged. Further the receiver
should say that the label was bearing the signature of the panchas with the date. A proper receipt will
avoid any loop hole for rejecting the test report.
The samples to be tested should be tested chemically and not be confirmed by seeing and
smelling or by experience.
n
The person carrying the sample to the Lab must give evidence to prove that the correct sample
r.i
was tested, as taken by him and the link between the sample and the test report should be established.
The sample from the test Lab should be received in properly sealed condition. Care should be taken that
e
this seal is not broken. Hence these remnant sample should be kept safely and in protective packing with
nc
proper label.
Report of the Director, Dy. Director and Asstt. Director of recognised Lab are considered as
re
opinion of scientific experts and they need not come to give evidence on that certificate under section
293(4) (e) of Cr. P.C. There should be no discrepancy in the weight of the sample recorded at the time of
fe
seizure panchanama and when the same is sent to the lab for testing. There should be no delay in
.re
sending the sample for test. It must be sent immediately and not later than 72 hours from the seizure,
The proper and authorised laboratory report is essential for conviction
4. The seized goods should be sealed and deposited immediately within 24 hours of the seizure.
w
Report of the seizure should be sent immediately to the superior officer.

w
5. Provision of section 167(2) of the Cr. P.C. of enlarging on bail will not be applicable to NDPS.
w
Complaint to be filed in 90 days

6. The intelligence or information received must be recorded in writing and should be put up to his
senior officer, as required under section 42 (2) of the NDPS Act. Generally the officer who receives
intelligence should not conduct search and also do investigation. A report of Arrest and seizure should be
submitted to the immediate superior officer within 48 hours as required under section 57 of this Act.
Therefore the officer receiving the information must put the date and time below, the report of recording
the information, similarly the superior officer receiving this report should also put the date and time below
his signature.
7. Suspicion is no substitute for proof. Even if we know that the person is involved, evidence has to
be collected to prove that suspicion. Vagueness is not permitted as the benefit of doubt will go to the
accused.
8. If narcotics has come to the accused from out side the border then the offence of importing is
complete.
9. Non compliance of section 50 would vitiate the trial and render conviction unsustainable. The
accused must be asked in writing his choice should be recorded and his signature obtained on that paper,
www.referencer.in
195
and also the fact that he was given the choice of being taken before a gazetted Officer or Judicial
Magistrate should be incorporated in the panchanama.
10. If several persons are residing in the place from where the drug is seized then the possession of
the drugs from the accused should be proved and the control of the premises should be proved beyond
doubt. If there is a possibility of more than person dealing with the goods the nexus must be proved
between the accused and the object.
11. Under section 35 (2) and 54 the burden of proof will be on the accused from whose possession
the drug was recovered. The possession factor will ensure punishment and ownership in that case need
not proved. If seizure is not believed the possession will not be believed by the court. Hence the
panchanama should be correct when seizure is made.
Possession of premises, and contraband was brought there and that he was dealing in it are the
required ingredients.
12. Extra Judicial confession is not a voluntary statement.
13. Punishment under NDPS for contravention of psychotropic drugs is 10 years extendable upto 20
years and fine of 1 lakh extendable to 2 lakhs
14. It is required that the offence should have been committed knowingly with culpable mental state
n
under section 36, 54 and 60 (3) and this should be proved by positive evidence or circumstantial evidence
r.i
before mens rea can be established.
15. Chapter V and VI consisting of section 107 and 120 B of Cr. P.C. deals with abettment and
e
conspiracy, while section 120A deals with criminal conspiracy. The requirements of an abettor (1) There
nc
must be a abettor (2) He must abet (3) the abettment must be an offence. Investigation is tantamount to
abettment. In order to constitute a conspiracy four things are necessary (1) At least two person (2) They
re
must engage in the commission of an act (3) the act or omission must have taken place “in order to do a
thing” (4) the act or omission must take place in pursuance of that conspiracy, knowledge or common
fe
design.
.re
16. Offence of acquiring, purchase, store, warehousing, possession punishable under section 22 r/w
8(c) and 29 of NDPS. Attempt to export punishable under section 28 r/w 8 (c) and 29. Export or attempt to
export under section 8 (C) and section 11 of the Customs Act and would constitute an offence under
w
section 135 (I) r/w 135 (I) (ii) of the Customs Act. Forgery punishable under section 465,471 of IPC.
w
17. Draw up a rough sketch of the place from where the drugs are seized, this should be made a part
w
of the panchanama and take the signatures of the witness and the person from whom the drugs are
seized.
OTHER USEFUL INFORMATION:

1. An information describing the suspect and his modus operandi with specific details on the date time
and place of drug deals. It needs to be reduced into writing by the officer receiving the information
and should be sent forthwith to the next superior officer. (s 42) It is mandatory legal provision.
2. Search of a person, premises, conveyance leading to recovery of drug concealed in a packaging or a
cavity of the vehicle. A search warrant issued by the empowered officer of the rank of superintendent
or above is executed in case the search is not to be conducted in a public place. All the requirements
relating to the search as are provided in the code of criminal procedure have to be followed. A notice
in writing under Sec. 50 needs to be served on the person searched giving him the option of his
getting searched in presence of a gazetted officer or a magistrate. The recovery would be illegal if
such a notice has not been given.
3. Seizure of drug recovered from the possession of a person informed against. The contraband is
tested by way of a field testing kit which indicates the presence of drug in the recovered substance. It
www.referencer.in
196
is a prima facie proof of the substance being of the drug type as is confirmed from the field testing kit.
A sample of the drug is drawn from the lot recovered and sealed with an official seal after taking the
signature of the panchas and the person from whom the recovery is made on the paper slip which is
affixed on the packet containing the sample before the same is sealed with an official seal. Chemical
analysis report received is the final word on the recovery of drug to be of a particular type that makes
the person possessing it liable for punishment.
4. A report on the seizure and arrest has to be prepared and submitted to the next higher officer by the
arresting officer under Sec. 57 within 48 hours of the arrest.
5. The arrested person is produced before the court within 24 hours of his arrest. He is to be conducted
strictly in conformity with the law relating to the rights of the arrested person. His relative or friend
should be notified of his arrest. In case the person is needed for effecting any further recovery of
drug or for any other investigation he is remanded to the custody of the agency; otherwise the
arrested person is sent to jail in judicial remand pending trial against him.
6. Follow up investigation are undertaken for collecting additional evidence corroborating the
confessional statement and the seizure document. These could be verification of vehicle registration
details, telephone dial out information, searches at other places from where the drug transited or
n
originated etc. Statement of the panchas is recorded on anything additional they have to say to what
r.i
is recorded in panchnama.
7. The investigations must be completed with 90 days of the arrest of the person. If there is delay in
e
filing challan or complaint within this period then the accused gets right to be enlarged on Bail. A
nc
complaint is filed under the regular punitive sections of the Act enumerating the evidence in support
of the complaint. The court takes cognisance of the complaint and frames charges based on the
re
complaint. If the accused denies the charges trial commences. Evidence is recorded by the
prosecution in support of its charges
fe
8. The court under section 313 of the Cr.P.C. records statement of the accused and he is given an
.re
opportunity to lead evidence in support of his statement. Judgement is passed by the court on
hearing the two parties after completing the evidence and accordingly if the charges are proved the
accused is convicted.
w
Guidelines for search/Raid:

w
1. All officers deployed for search should carry their Identity Card.
w
2. Leader of each team should have a search authorisation.

3. As far as possible there should be a pre-planning before carrying out the search/raid. Pre-
planning will include survey of the area/place where the search/raid has to be undertaken. This
pre-planning is essential for effective deployment of staff to achieve maximum results.
4. The officer-in-charge of the search should deploy his officers in such a manner that all the
entrances/exists are properly guarded so as to prohibit any person coming in/going out of the
premises.
5. All incoming telephone calls should be received by the searching officers only. No person within
the premises should be allowed to talk on phone with any person outside.
6. Immediate on entering the premises, the occupants should be instructed not to converse about
the business of search with each other.
7. The list of documents/records mentioned for recovery should be gone through carefully. The
searching officers should examine every document and record and decide its worth for purposes
of recovery.
8. Samples should be drawn.
www.referencer.in
197
9. The documents/records to be seized should be properly numbered serially and a brief description
of the file/records and the period to which it belongs should be mentioned in the Panchnama.
10. The statements of the persons concerned should be recorded on the date of search itself, least
they may be tutored by the party. For this purpose, a brief and immediate scrutiny of the
records/documents should be done.
11. Soon after the commencement of the search the contact telephone number of the party should be
given to the officers who is monitoring the search/raid. He should be appraised about the
commencement of the search and its progress from time to time and the important material have
come to notice so far. Before withdrawal from the search as far as possible clearance from the
same officer should be taken unless the search/raiding party has already briefed in this regard.
12. Seized documents/records should be handed over to the assigned person under proper receipt.
13. Each search/raid party should invariably carry with them a drug identification/testing kit and they
should also have bag containing certain essentials like screw driver, torch, flash light, mirror,
walkie talkie, binocular, night vision devices, hand cuff, seal sealing materials, emergency
medical kit, etc.
n
Points to be noted while recording panchnama :
r.i
1. Name, occupation, age and address of panchas.
2. Time, date and place of start of proceedings.
3. Reason for search.
e
nc
4. Authority for search.
5. Identify yourself by showing identity card.
re
6. Mention names of a few other officers included in the search part.

7. Offer personal search of each member.
fe
8. Mention presence of the occupants of the premises/person to be searched.

.re
9. Before conducting personal search ask the person whether he would like to be taken before a
gazetted officer or a magistrate.
10. Mention description of place to be searched e.g. area of flat, number of rooms, telephone no. etc.
w
11. Ask the person to be searched to give declaration of this baggage wherever necessary e.g.
w
Whether he is having any contraband.

w
12. Give graphic description of the search operation e.g. who opened the suitcase, who had the key,
from where the incriminating documents or contraband was recovered, how it was concealed etc.
13. Test drugs with field testing kit and mention results.
14. Mention where and how the weighment of contraband goods was done. Give gross & net weight.
15. Mention value of contraband to be seized.
16. Mention no. of samples drawn and their weight , what identification marks were given to
contraband exhibits, samples and documents proposed to be seized/taken over.
17. Mention “Nothing else was taken over” or “Religious feelings hurt.”
18. Mention time of conclusion of panchnama.
19. Offer personal search on conclusion of search before leaving the place of search.
20. Take photographs, fingerprints wherever possible.
21. Mention money and valuables given back to the person searched or seal them for handing over
later in the court.
22. Seal contraband and exhibits mentioning seal no.
23. Take signature of panchas, officer writing the panchnama and the person being searched on
labels pasted on contraband, exhibits and documents.
www.referencer.in
198
24. Mention under what provisions the seizure was done.

25. Mention any important events taking place during search e.g. Arrival of more officers/persons etc.
26. Give a copy of panchnama of the persons searched and obtain his receipt.
Details of Drugs seized :

1. Note the exact date and place of discovery. Record the weight and type of the drug.
2. Describe the wrapper : material, colour, trademark, subsequent markings, number of parcels
making up the whole amount.
3. Note the means of transport used and the hiding place.
4. Seize the vehicle, and make a complete and thorough search of it.
Details in case of foreign National:

1. Check his passport carefully. Are there any signs of alteration : e.g. Erasures (transparency),
insertion, missing pages, restrictions on travel ? For nationals of certain countries: do they have
appropriate visas ?
2. Has he several different passport ?
n
3. If they bear the photograph of person concerned , but give particulars of different identities ?
r.i
4. From whom did he obtain these passports ? Where and when did he obtain them ? How much
did he pay for them ? For what purposes has he used them ? Where ? When ? On what date did
e
he enter the country ? At which border check-point ? Where has he stayed since ?
nc
5. Note the frontiers crossed (dates and places of Immigration/Emigration stamps).
re
Questions to be asked while recording statement under section 53 of NDPS Act:

1. Does he know the type of drug he was carrying ? Who gave it to him ? Where ? When ? Through
fe
which towns and along which roads did he travel before reaching the place where the drug was
.re
seized ? Where did he stay on the journey ? At what hotels ?

2. To whom was he to have handed the drug ? Where ? When ? Is there a prearranged code so that
the carrier and the intended recipient recognise each other (e.g. Words, signs, or an article to
w
show) ? What was he to have been paid ? When ? Where ? Obtain details that can lead to the
w
identification of the individuals involved (First names, family names, description, accents, origins,
w
etc.).
3. Make full use of all the information obtained during the investigations. Send to all countries that
may be concerned, because of the nationality of the individuals arrested, their place of residence,
the point of departure or destination of the drug, the place of transit, or for any other reason, all
information liable to be of interest, or to suggest lines of enquiry which will produce useful results
for the investigators working on the case. Do not fail to send the photographs and fingerprints of
all persons arrested.
The above points are few tips to the officers working in the Narcotic cell or those dealing in Narcotic
cases. If the officers follow these instructions meticulously, then the conviction rate increase.
OTHER RELEVANT ACTS AND RULES:
PITNDPS ACT (THE PREVENTION OF ILLICIT TRAFFIC IN NARCOTIS AND PSYCHOTROPIC

SUBSTANCES ACT 1988.
Under this Act the Government can detain any person (including a foreigner with a view to preventing him
from engaging in illicit traffic in Narcotic drugs and psychotropic substances.
www.referencer.in
199
THERE ARE VARIOUS RULES LIKE

1. THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES RULES 1985.
2. THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES CONSULTATIVE
COMMITTEE RULES 1988.
3. THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES (EXECUTION OF BOND BY
CONVICTS OR ADDICTS) RULES 1985.
4. THE ILLEGALLY ACQUIRED PROPERTY (RECEIPT, MANAGEMENT AND DISPOSAL)
RULES 1989.
5. APPELLATE TRIBUNAL FOR FORFEITED PROPERTY (CONDITION OF SERVICE OF
CHAIRMAN AND MEMBERS) RULES 1989.
6. APPELLATE TRIBUNAL FOR FORFEITED PROPERTY (FEES) RULES 1989.
7. THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES (AUTHENTICATION OF
DOCUMENTS) RULES 1992.
8. THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES (REGULATION OF
CONTROLLED SUBSTANCES) ORDER 1993.
9. IN ADDITION THERE ARE VARIOUS STATE ACTS AND RULES.
n
r.i
Disposal of seized/confiscated Narcotic Drugs and Psychotropic Substances after disposal of
cases.
e
In a number of cases seized/confiscated narcotic drugs and psychotropic substances which were
nc
produced in the Courts as Muddamal articles, continue to lie in the courts even after the trial is concluded.
In a number of cases, the possession of such Muddamal articles has not been taken by the appropriate
re
authorities for disposal thereof , even though the courts have passed appropriate orders with regard to
disposal of such Narcotics Drugs and Psychotropic Substances. With the increase in litigation and
fe
shortage of premises for storage of such seized articles, the courts also get exposed to the risk of
.re
pilfering, theft, substitution, abuse, misuse, etc.

It is requested that appropriate arrangements be made expeditiously for taking the possession
and disposal of seized drugs in respect of which the courts have passed appropriate orders.
w
In other cases, where the trial is still pending, it is pre-trial disposal of seized drug as laid down in
w
Standing Order no. 2/88 of NCB, New Delhi.

w
[ Narcotics Control Bureau, New Delhi, Letter F. No. XXIV/19/99/I & I dt. 30.07.1999 ]
NARCOTICS CONTROL BUREAU

NEW DELHI
STANDING ORDER NO. 2/88
RECEIPT, CUSTODY, STORAGE AND DISPOSAL OF SEIZED CONFISCATED NARCOTIC DRUGS
AND PSYCHOTROPIC SUBSTANCES.
Consequent upon the enforcement of the Narcotic Drugs and Psychotropic Substances Act,
1985, with effect from 14.11.1985, the enforcement activities against drug traffickers in the country have
been stepped up resulting in seizures of huge quantities of narcotic drugs and psychotropic substances
(hereinafter referred to as the ‘drugs). For successful prosecution of drug offenders, it has been felt
necessary to formulate a uniform procedure for drawal of samples of the seized drugs, which from the
primary evidence in the course of prosecution proceedings before the courts of law keeping this in view,
the Narcotics Control Bureau; the Central Authority created under section 4(3) of the Narcotic Drugs and
Psychotropic Authority created 1985 (hereinafter referred to as the ‘new low’) which functions as the apex
www.referencer.in
200
coordinating and enforcement agency in the country has formulated and circulated a Standing Order No.
1/88 dated 15.3.1988 .
2. Recognising the importance of despatch transit receipt, safe custody, storage, proper accounting
and disposal + destruction of the seized/confiscated drugs, and the need for evolving a uniform procedure
for regulating the above mentioned operations, both by the Central and State drug law enforcement
agencies in the country, the Narcotics Control Bureau has formulated the following procedure to be
complied with in this behalf.
3.1 All drugs should be properly classified, carefully weighted and sampled on the spot of seizure.
3.2 All the packages/containers should be serially numbered and kept in lots of sampling. The
procedure set out in Standing Order No. 1/88 referred to above should be scrupulously followed.
3.3 After sampling, detailed inventory of such packages/containers should be prepared for being
enclosed to the panchanama, Original, wrappers must also be preserved for evidentiary
purposes.
3.4 After completion of panchanama, the drugs should be packed, in heat sealed plastic bags. For
bulk quantities of ganja, instead of plastic bags, gunny bags may also be utilised wherever those
are not readily available.
n
3.5 Agencies of the Central and State Government, who have been vested with the powers of
r.i
investigation under the new law must specifically designate their godowns for storage purposes.
The godowns should be selected keeping in view their security angle, juxtaposition to courts, etc.
3.6
e
All drugs must invariably to stored in safe and vaults provided with double-locking system.
nc
3.7 Such godowns, as a matter of rule, be placed under the overall supervision and charge of a
Gazetted Officer of the respective enforcement agency, who should exercise utmost care,
re
circumspection and personal supervision, as far as possible. Such officers should not be below
the rank of Superintendent in the Departments of Customs, Central Excise, Directorate of
fe
Revenue Intelligence, Central Bureau of Narcotics, Narcotics Control Bureau, C.B.I., B.S.F., etc.,
.re
(Central agencies and Station House Officer/Officer-in-charge of a police station, Superintendent

of State Excise, Naib/Tehsildar of Revenue, Drug Control Department, etc. in the States and U.T.
enforcement agencies. They will personally be held accountable for safety and security of the
w
drugs.
w
3.8 Each seizing officer should deposit the drugs fully packed and sealed with his seal in the godown
w
within 48 hours of seizure of such drugs, with a forwarding memo indicating.

(i) NDPS Crime No. as per crime and prosecution register under the new law (i.e. NDPS Act.)
(ii) Name (s) of accused
(iii) Reference of test memo
(iv) Description of drugs in the sealed packages/containers and other goods, if any.
(v) Drug-wise quantity of each package/container and other goods, if any
(vi) Drug-wise number of packages/containers
(vii) Total number of all packages/containers
Annexure I
3.9 The seizing officer, after obtaining an acknowledgement for such deposit in the format (Annexure
- I), will hand over the same to the Investigating Officer of the case along with the case dossiers
for further proceedings.
4.0 The officer-in-charge of the godown, before accepting deposit of drugs, will ensure that the drugs
are properly packed and sealed. He will also arrange the packages/containers (case-wise and lot-
wise) for quick retrieval, etc.
www.referencer.in
201
4.1 The godown in-charge is required to maintain a register wherein entries of receipt should be
made (as per format at Annexure II).
Annexure II
4.2 It will be incumbent upon the Inspecting Officers of the various departments mentioned as
Annexure II to make visits to the godowns for ensuring adequate security and safety and for
taking measures for timely disposal of drugs. The Inspecting Officer should record their
remarks/observations against col. 15 of the Format at Annexure II.
4.3 The Heads of respective enforcement agencies (both Central and State Governments) may
prescribe such periodical reports and returns, as they may deem fit, to monitor the safe receipt,
deposit, storage, accounting and disposal of seized drugs.
Annexure III
4.4 While quarterly returns of disposal of drugs by the Central Government agencies concerned shall
be furnished to the Director-General, Narcotics Control Bureau by the 15th of the month following
the quarter (in the format at Annexure III), the sate enforcement agencies are required to submit
n
their reports to the State Police Headquarters (CID) Director General, Narcotics Bureau informed
r.i
of the same as per Annexure III.
Annexure IV
e
nc
4.5 Since the early disposal of drugs assumes utmost consideration and importance, the enforcement
agencies should obtain orders for pre-trial disposal of drugs and other articles (including
re
conveyance, if any) by having recourse to the provisions of Section 451 of the Criminal Procedure
Code, 1973 (extracts enclosed at Annexure IV) and those of the provisions of section 110 (IA) ,
fe
(IB) and (IC) of the customs Act, 1962 read with Government of India’s notification No. 31/86-
.re
Cus. (AS) dated the 5th Februaray, 1986 issued in this behalf which specifies ‘Dangerous drugs
and psychotropic substances’.
4.6 While preferring the application under section 451 before the Court of Sessions immediately,
w
emphasis may be laid on ‘expediency of disposal’ The grounds that may be high-lighted may
w
pertain to,
w
(i) risk of pilferage, theft and substitution

(ii) high potential and vulnerability of abuse
(iii) high temptations to traffickers
(iv) diminution in the value of other articles (including conveyances) due to long storage, etc.
4.7 Since the filling of the charge-sheet/plaint is a condition precedent for expeditious issue of orders
for pre-trial disposal, complaints by the respective enforcement agencies must be filed after
completion of investigation within the stipulated period of 90 days of seizure/arrest, on a priority
basis. They should meticulously be adhered to.
4.8 While moving the application under Section 451 of the Criminal Procedure Code as above,
production of all seized/articles/drugs, etc., along with the panchanama (in original) and detailed
Inventory thereof is essential. The inventory should be complete in all respects and contain such
particulars as may be relevant to establish nexus/identity of articles. The chemical analysis report
should also be simultaneously filed.
4.9 After the court orders are passed for pre-trial disposal of drugs, those drugs which have no
legitimate commercial value (excepting opium, morphine, codeine and thebaine, which are
required to be transferred to the Government Opium and Alkaloid Works Undertaking at Ghazipur
www.referencer.in
202
or Neemuch, as the case may be) are required to be destroyed consistent with the guidelines
issued under this order and not repugnant to the court’s order.
5.0 As bulk of seizures of drugs relate to illicit import or export and are made at the points of entry or
exit or in transit traffic, such drugs are liable to seizure under section 110 of the Customs Act,
1962 and confiscation under section 111 or 113 ibid. In such cases, it would be appropriate to
initiate proceedings under the Customs Act also.
Annexure V
5.1 The relevant provisions of section 110 (IA), (IB) and (IC) are reproduced at Annexure-V.
5.2 A three member Committee of the respective enforcement agencies (both Central and States),
known as the Narcotics Drugs and Psychotropic Substances Disposal Committee should be
constituted to discharge its functions from the Head Quarters of the respective Heads of
Departments. The Committee will be headed by an officer not below the rank of –
(j) Deputy Commissioner of Customs and Central Excise with two members of the rank of
Assistant Commissioner of Customs and Central Excise in the case of a Customs and
Central Excise Commissionerate;
n
(ii) Deputy Narcotics Commissioner with two members of the rank of Assistant Narcotics
r.i
Commissioner in the case of Narcotics Commissioner’s Organisation;
(iii) Deputy Director of Revenue Intelligence with two members of the rank of Assistant
e
Director in the case of the Directorate of Revenue Intelligence;
nc
(iv) Deputy Director and two other officers as may be authorised by the Director General,
Narcotics Control State Police Organisation;
re
(v) Deputy Inspector General of Police with two members of the rank of Superintendent of
Police in respect of State Police Organisations; and
fe
(vi) Deputy Commissioner of Excise with two officers of the rank of Assistant Commissioners,
.re
in respect of State Excise Organisations.

The Committee will be directly responsible to the Head of the Department concerned.
5.3 The functions of the Committee will be to
w
(a) undertake detailed analysis of drugs pending disposal

w
(b) advise the respective investigating officers/supervisory officers on the steps to be initiated for
w
export disposal.
The Committee will meet, as frequently as possible, as may be considered necessary for quick
disposal of drugs and at least once in two months. While the Central agencies will endorse a copy of the
minutes of such meetings directly to Narcotics Control Bureau, the State enforcement agencies
concerned will report the same to their respective state police Head Quarters (CID), who, in turn, will keep
the Narcotics Control Bureau informed of the progress made from time to time
5.4 The officers-in-charge of godowns will prepare a list of all such drugs that have become ripe for
disposal to the Chairman of the respective drug disposal committee. After examining that they are
fit for disposal and satisfying that they are no longer required for legal proceedings and the
approval of the court has been obtained for the purpose, the Members of the respective drug
disposal committees will endorse necessary certificates to this effect. The committee will,
thereafter, physically examine and verify the drug consignments will reference to the seizure
report and other documents like chemical analysis, etc., including its weighment and record its
finding in each case.
Note: The drugs become ripe for disposal after they are confiscated by the competent court or the
competent authority of the Customs on expiry of the period of appeal or when ordered by the
www.referencer.in
203
court for disposal under section 451 of the Cr. P.C. 1973 or section 110 1(C) of the Customs Act,
1962.
5.5 In the case of tampering with seal, etc., the composite sample will be drawn for getting the same
tested by the Central Revenue Control Laboratory or the State Forensic Science Laboratory/State
Drug Control Laboratory concerned. If no variation either in purity or quantity is found, the same
will be ordered for destruction by the Department. Where any minor variations are noticed, a
detailed report should be submitted to the Head of the Department of the enforcement agency
concerned. In the case of wider variations, the matter should be immediately reported to the
Narcotic Control Bureau indicating the follow-up action taken in this regard. The destruction of
drugs in such cases can be done only after obtaining the orders of the Head of the Department
concerned.
5.6 The Committee will be empowered to order destruction of the seized drugs in the following cases:
Name of drug Quantity (Kgs)
Heroin 2
Hashish (Charas) 50
Hashish oil 10
n
Ganja 500
r.i
Cocaine 1
Mandrax 150
Other drugs
e upto value of Rs.5 lakhs
nc
The disposal Committee should intimate the Head of the Department concerned the programme
of destruction (giving complete details) in advance (at least 15 days be fore the date of destruction), so
re
that in case he deems fit, he may either himself conduct surprise checks, or depute an officer for
conducting such surprise checks. The disposal Committee should inform the respective Heads of
fe
Departments in respect of every destruction made by it indicating the date of destruction, quantities
.re
destroyed, etc.
In those cases where the quantities exceed the above limits destruction could be ordered and
take place only under the supervision by the Head of Department himself along with the Chairman and
w
Members of Drug Disposal Committee.

w
5.7 All drugs excepting opium, morphine, codeine and thebaine shall be destroyed by incineration in
w
such places where adequate facilities and security arrangements exist for the same after
ensuring that this will not be a health hazard from the point of view of pollution.
Annexure VI
5.8 A certificate of destruction (in triplicate) (annexure-vi) containing all the relevant data like godown
entry no., file no., gross and net weight of the drugs seized, etc., shall be prepared and duly
endorsed by the signature of the Chairman as well as Members of the Committee. This could
also serve the purpose of panchanama. The original copy will be pasted in the godown register
after making necessary entries to this effect, the duplicate to be retained in the seizure case
file and the triplicate copy will be kept by the Disposal Committee.
6. The procedure as outlined in Section II of the Opium Manual (Vol. III) will continue to apply for
drugs like opium morphine, codeine and thebaine. Disposal of poppy straw shall continue to be
regulated by the procedure as stipulated by the respective State Excise Department in this behalf.
7. Other goods (including conveyance) ripe for disposal may be disposed of by public auction or in
such manner as is deemed convenient in the best interests of the Government.
www.referencer.in
204
ANNEXURE I
(Para 3.9)
GODOWN RECEIPT (No. II)
RECEIVED (No.) ………………………………..packages/containers said to contain ……………..

(Description of Drugs) sealed with the seal No. …………. of (Name & Designation) seizing officer and
entered into godown register vide entry No. …………………..
Facsimile of the seal……………………………
Place: Signature of the Officer-in-charge

Date: of godown with full name and
Time: official seal
ANNEXURE-II
n
(Para 4.1)
FORMAT OF REGISTER REQUIRED TO BE

e
MAINTAINED BY THE GODOWN IN CHARGE r.i
nc
N.C.B. III
re
1. Godown entry S.No.

2. N.D.P.S. Crime No.
fe
3. Description of drugs in the scaled packages/containers and other goods, if any

.re
4. No. of packages/containers (drug-wise)

5. Quantity of drug (package/containerwise)
6. Particulars of the test memos.
w
7. Name(s) and address(es) of accused

w
8. Name with official designation and address of seizing/depositing officer

w
9. Facsimile of the seal put on the packages/ containers by the seizing officer
10. Date and time of deposit
11. Particulars of exit and re-entry for exhibiting to court.
12. Date and time of removal for disposal
13. Disposal particulars including destruction or despatch to Central Govt. Opium Factory.
14. Certificate of disposal including price payment particulars, from Govt. Opium Factory, where
applicable.
15. Remarks of the Inspecting Officer(s)*
*Inspecting Officers: In the case of Central Enforcement Agency: (1) D.G.,NCB (2) Dy.D.G.,NCB(3)
Narcotics Commissioner of India (4) Dy. Narcotics Commissioners (5) D.G.,BSF,(7) Sr. Officers of CBI,
(8) Chief Commissioner, Customs & Central Excise, (9) Commissioner, Customs & Central Excise (10)
Assistant Commissioner of Customs and Central Excise.
In the case of State Enforcement Agency : (1) D.G. of Police (2) I.G. of Police (3) Dy. I.G.P. (4)
Superintendent of Police (5) State Excise Commissioner (6) Dy. Excise Commissioner (7) Superintendent
of Excise and Equivalent officer of State Govt. in the authorised departments.
www.referencer.in
205
ANNEXURE
FORMAT OF QUARTERLY RETURN TO BE FURNISHED BY THE

CENTRAL ENFORCEMENT AGENCIES TO N.C.B.
Name of Opening Balance Receipts Qty. disposed Qty. Despatched Stock in Remarks
the drug as on Ist day of during by destruction to opium hand at the
the quarter the Qr. factories end of Qr.
1. 2. 3. 4. 5. 6. 7.
ANNEXURE III
PROVISIONS OF SECTION 110(1A) (1B) AND (IC)

OF THE CUSTOMS ACT, 1962.
110(IA): The Central Government may, having regard to the perishable or hazardous nature of any
goods, depreciation in value of the goods with the passage of time, constraints of storage space for
n
goods, or any other relevant considerations, by notification in the Official Gazette specify the goods or the
e r.i
class of goods which shall, as soon as may be, after its seizure, under sub-section(1) be disposed of by
the proper officer in such manner as the Central Government may, from time to time, determine after
nc
following the procedure hereinafter specified.
110(1B ): Where any goods, being goods specified under subsection (1A) have been seized by a proper
officer under subsection (1), he shall prepare an inventory of such goods containing such details relating
re
to their description, quality, quantity, mark, numbers, country of origin and other particulars as the proper
fe
officer may consider relevant to the identity of the goods in any proceedings under this Act and shall
make an application to Magistrate for purpose of :-
.re
(a) certifying the correctness of the inventory so prepared; or

(b) taking, in the presence of the magistrate photographs of such goods, and certifying such
w
photographs as true; or
(c) allowing to draw representative samples of such goods, in the presence of the Magistrate,
w
and certifying the correctness of any list of samples so drawn.

w
110(1C): Where the application is made under sub-section (1B) the Magistrate shall, as soon as may be,
allow the application.
ANNEXURE IV
PROVISIONS OF SECTION 451 OF THE CRIMINAL PROCEDURE CODE, 1973
451. Order for custody and disposal of property pending trial in certain cases:-
When any property is produced before any criminal court during any enquiry or trial, the court
may take such order as it thinks fit for the proper custody of such property pending, the conclusion of the
enquiry or trial, and, if the property is subject to speedy and natural decay, or if it is otherwise expedient
so to do, the court may, after recording such evidence as it thinks necessary, order it to be sold or
otherwise disposed of.
Explanation: For the purpose of this section “property” includes –

(a) Property of any kind or document which is produced before the count or which is in its
custody.
(b) Any property regarding which an offence appears to have been committed or which appears
to have been used for the commission of any offences.”
www.referencer.in
206
ANNEXURE-VI (Para 5.9) (IN TRIPLICTE)

CERTIFICATE OF DESTRUCTION OF NARCOTIC DRUGS AND PSYCHOTROPIC
SUBSTANCES (PARA 9, 10 OF THE STANDING ORDER NO. /88 –DETAILS
OF THE DRUGS AND SUBSTANCES DESTROYED.
Particulars of Seizure case Godown Register As recorded in the Weight ascertained on

the drugs file ref. No. entry No. Godown register physical verification
(1) (2) (3) (4) (5)
Gross Wt. Net. Wt. Gross Wt. Net Wt.
(a) (b) (a) (b)
Name and address of Date/Place/Mode of

the witnesses destruction
(6) (7)
It is certified that a Committee consisting of S/Shri…………………………………………supervised

the destruction of narcotic drugs and psychotropic, substances particulars above, in the presence of
following witnesses.
n
(delete whatever is not applicable).
SIGNATURE
WITH DATE
SIGNATURE
WITH DATE
e r.i SIGNATURE
WITH DATE
nc
(CHAIRMAN) (MEMBER) (MEMBER)
re
fe
STANDING ORDER NO. 1/88

.re
DRAWAL, STORAGE, TESTING AND DISPOSAL OF SAMPLES FROM SEIZED NARCOTIC DRUGS
AND PSYCHOTROPIC SUBSTANCES – PROCEDURE
w
1.1 It has been brought to the notice of this Bureau by the Chief Chemist, Central Revenues
w
Control Laboratory that different investigating officers of various enforcement agencies

w
adopt different Procedures in drawing samples from seized narcotic drugs and
psychotropic substances, particularly with regard to the number of samples drawn,
quantity of the sample, sealing, mode of packing, despatch of samples etc., to the
concerned laboratory, for test. It has also been found that handling of samples at different
stages and places may also become an issue of dispute during the trial, and hence a
clear and uniform procedure is necessary to avoid any doubt or confusion at any level.
With a view to bring uniformity of approach in such matters, and also to provide for a
secure system of handling of drug samples it is decided to standardise the procedure
with regard to drawing, forwarding and testing of samples.
1.2 It may be noted that all drugs and psychotropic substances, materials, apparatus
utensils, or any other articles in respect of which or by means of which any offence
punishable under Chapter IV of the Narcotic Drugs and Psychotropic Substances Act,
1985 has been committed, are liable to confiscation under Section 60 of the Narcotic
Drugs and Psychotropic Substances Act. In other words, an act of omission, or
commission constituting an offence under Chapter IV of the Narcotic Drugs and
Psychotropic Substances Act, 1985 is only in relation to such narcotic drugs or
www.referencer.in
207
psychotropic substances which are liable to confiscation. As such all offence under
N.D.P.S. Act have to be proved only in relation to such drugs or psychotropic substances
which are liable to confiscation.
1.3 All illicit narcotic drugs or psychotropic substances recovered from a person, place,
conveyance etc. are material evidence as they are liable to confiscation. Further, they
constitute primary evidence for any act, omission or commission on the part of a person
rendering him liable for punishment under Chapter IV of the N.D.P.S. Act, 1985. Most of
the narcotic drugs and psychotropic substances cannot be conclusively proved to be
such drugs or substances merely by visual examination in the trial Court and they require
to be proved by chemical analysis to be conducted by chemists authorised under section
293 of Cr.P.C. 1973. The provisions of subsection 4 of section 293 of Cr.P.C. are
reproduced hereunder for ready reference:-
‘293 (4) :-‘
This section applies to the following government scientific experts, namely :-
(a) any Chemical Examiner or Assistant Chemical Examiner to Governmenrt.
n
(b) The Chief Inspector of Explosives;
(c) The Director of Finger-print Bureau;

e r.i
nc
(d) The Director Hoffkin Institute of Bombay;
re
(e) The Director(Deputy Director or Assistant Director) of a Central Forensic Science Laboratory
or a State Forensic Science Laboratory;
fe
(f) The Serologist to the Government.

.re
Note :- Sub – Section (4) of section 293 has been amended to include Deputy Directors and
Assistant Directors of Central and State Forensic Science Laboratories in the list of
w
Government Scientific experts.

w
Government of India vide notification No.74F.No. 50/53/76-Ad.II dated 17th July 1976 as
w
amended vide notification dated 2nd February 1977 have declared chemists of different grades
working in Central Revenues Control Laboratories as Chemists to Government for the purpose of
section 293 of Cr. P. C.
1.4 If the drugs seized are found in packages / containers the same should be serially
numbered for purposes of identification, In case the drugs are found in loose form the
same should be arranged to be packed in unit containers of uniform size and serial
numbers should be assigned to each package / container. Besides the serial number, the
gross and net weight, particular of the drug and the date of seizure should invariably be
indicated on the packages. In case sufficient space is not available for recording the
above information on the package, a Card Board label, should be affixed with a seal of
the seizing officer and on this Card Board label, the above details should be recorded.
1.5 Place and time of drawal of sample
Samples from the Narcotic Drugs and Psychotropic Substances seized, must be drawn on the
spot of recovery, in duplicate, in the presence of search (Panch) witnesses and the person from
www.referencer.in
208
whose possession the drug is recovered, and mention to this effect should invariably be made in
the panchnama drawn on the spot.
1.6 Quantity of different drugs required in the sample
The quantity to be drawn in each sample for chemical test should be 5 grams in respect of all
narcotic drugs and psychotropic substances except in the cases of Opium, Ganja and Charas /
Hashish where a quantity of 24 grams in each case is required for chemical test. The same
quantities should be taken for the duplicate sample also. The seized drugs in the packages /
containers should be well mixed to make it homogeneous and representative before the sample
in duplicate is drawn.
1.7 Number of samples to be drawn in each seizure case
(a) In the case of seizure of single package/container one sample in duplicate is to be drawn.
Normally it is advisable to draw one sample in duplicate from each package/container in case
of seizure of more than one package/container.
(b) However, when the package/container seized together are of identical size and weight,
bearing identical markings and the contents of each package give identical results on colour
test by U.N. kit, conclusively indicating that the packages are identical in all respect / the
n
packages / container may be carefully bunched in lots of 10 packages / containers may be
r.i
bunched in lots of 40 such packages such packages / containers. For each such lot of
packages / containers, one sample in duplicate may be drawn.
e
(c) Whereaftar making such lots, in the case of Hashish and Ganja, less than 20 packages /
nc
containers remains, and in case of other drugs less than 5 packages / containers remain, no
bunching would be necessary and no samples need be drawn.
re
(d) If it is 5 or more in case of other drugs and substances and 20 or more in case of Ganja and
Hashish, one more sample in duplicate may be drawn for such remainder package /
fe
containers
.re
(e) While drawing one sample in duplicate from a particular lot, it must be ensured that
representative drug in equal quantity is taken from each package / container of that lot and
mixed together to make a composite whole from which the samples are drawn for that lot.
w
Subject to the detailed procedure of identification of packages / containers, as indicated in

w
para 1.4 each package / container should be securely sealed and an identification slip pasted
w
/ attached on each one of them at such place and in such manner as will avoid easy
obliteration of marks and numbers on the slip. Where more than one sample is drawn, each
sample should also be serially numbered and marked as S-1, S-2, S-3 and so on, both
original and duplicate sample. It should carry the serial number of the packages and marked
as P-1, 2, 3, 4 and so on.
1.9 It needs no emphasis that all samples must be drawn and sealed in the presence of the
accused, Panchnama witnesses and seizing officer and all of them shall be required to put
their signatures on each sample. The official seal of the seizing officer should also be affixed.
If the person from whose custody the drugs have been recovered, wants to put his own seal
on the sample, the same may be allowed on both the original and the duplicate of each of the
samples.
1.10 Packing and sealing of samples :
The sample in duplicate should be kept in heat sealed plastic bags as it is convenient and
safe. The plastic bag container should be kept in a paper envelope may be sealed properly.
Such sealed envelop may be marked as original and duplicate. Both the envelops should
also bear the S. No. of the package (s) / container (s) from which the sample has been
www.referencer.in
209
drawn. The duplicate envelope containing the sample will also have a reference of the test
memo. The seals should be legible. This envelope along with test memos should be kept in
another envelope which should be also be sealed and marked “secret-Drug sample/Test
memo” to be sent to the concerned chemical laboratory.
1.11 Laboratories to which samples may be sent
The seizing officers of the Central Government Departments viz. Customs, Central
Excise, Central Bureau of Narcotics, Narcotics Control Bureau, D.R.I., etc. should despatch
samples of the seized drugs to one of the Laboratories of the Central Revenues Control
Laboratory nearest to their offices depending upon the availability of test facilities. The addresses
of the Dy. Chief Chemists of the Central Revenues Control Laboratories are given below:
1. General Manager, Govt. Opium and Alkaloid Works, Ghazipur (U.P.).
2. General Manager, Govt. Opium and Alkaloid Works, Neemuch (M.P.).
3. Chief Chemist, Central Revenue Control Laboratory, Pusa Road(IARI), New Delhi.
4. Dy. Chief Chemist, Office of the Collector of Customs House, Chennai 600 001.
5. Dy. Chief Chemist, Chemical Laboratory, Customs House, Calcutta 1.
6. Dy. Chief Chemist, New Customs House, Ballard Estate, Mumbai 400 038.
n
7. Dy. Chief Chemist, Central Excise Laboratory, Estrella Batteries Compound, Dharavi Road,
r.i
Mumbai 400 019.
8. Chemical Examiner, Office of the Commissioner of Customs, Customs House, Cochin 9.
e
9. Chemical Examiner, Central Excise Laboratory , Yashkamal, Building, 8th floor, Baroda 5
nc
(Gujarat).
10. Chemical Examiner, Central Excise Laboratory, Central Excise Laboratory, CORIL Refinery,
re
Vishakhapatnam (A.P.)
11. Chemical Examiner, Customs House, Kandla, Gujarat.
fe
12. Chemical Examiner, Customs House, Laboratory, Sada, MARMUGOA GOA 403803.
.re
13. Chemical Examiner, Central Excise Laboratory, Assam Oil Refinery, Dibboi (Assam).
14. Chemical Examiner, Central Excise Laboratory, Bureau Oil Refinery, Distt. Begusarai (Bihar).
15. Chemical Examiner, HPCL, Refinery, Corridor Road, Trombay, Mumbai 400 074.
w
The other Central Agencies like B.S.F., C.B.I. and other Central Police organisations may send
w
such samples to the Director, Central Forensic Laboratory, New Delhi. All State Enforcement Agencies
w
may send samples of seized drugs and psychotropic substances to the Director/Deputy Director/Assistant
Director of their respective State Forensic Science Laboratory.
The Addresses of State Forensic Science Laboratories are given below:
1. Director, Forensic Science Laboratories, Govt. of Bihar Patna-800 023.
2. Director, Police Forensic Science Laboratory, Rajasthan, Nehru Nagar, Jaipur-6.
3. Director, Forensic Science Laboratory, Mini Punjab Secretarial, Plot No. 2, Sector 9-A,
Chandigarh.
4. Director, State Forensic Science Laboratory, Rasulgarh, Bhubaneshwar-10 (Orrisa).
5. Director, Forensic Science Laboratory, Haryana Madhuban (Karnal).
6. Director, Forensic Science Laboratory, Andhra Pradesh, Red Hills, Hyderabad-4.
7. Director, Forensic Science Laboratory, Trivendram-10.
8. Director, State Forensic Science Laboratory, Govt. of West Bengal, Balgachia Road,
Calcutta-37.
9. Director, Forensic Science Laboratory, 5-Miller Road, Om Mehal Building, Bangalore-560052.
10. Director, Forensic Science Laboratory, Assam, Kahitapara, Guwahati-19.
11. Director, Forensic Science Laboratory, Forensic House, Kamaragar Slai, Mysore, Madras-4.
www.referencer.in
210
12. Director, Forensic Science Laboratory, Gujarat State, New Mental Corner, Ahmedabad-
380016.
13. Director, Forensic Science Laboratory, Maharashtra State, Vidyanagari, Kalina, Santacruz
(East), Mumbai-400 098.
14. Director, Forensic Laboratory, Civil Lines, Sagar (M.P) –470 001.
15. Director, Forensic Science Laboratory, Mahanagar, Lucknow (U. P.).
16. Director, Forensic Science Laboratory, Sector 18, Chandigarh.
17. Director, Forensic Science Laboratory, Bureau of Police Research and Development (MHA),
Govt. of India, O.V. Campus, Ramnathpur, Hyderabad – 500 013.
18. Director, Central Forensic Science Laboratory, C.B.I., Block-4, C.G.O. Complex, Lodhi Road,
New Delhi.
19. Assistant Director, Forensic Science Laboratory, Junagarh (Gujarat).
20. Chemical Examiner to the U.P. Govt., Agra (U.P.).
21. Govt. Examiner of questioned documents, Railway Board Building, Simla (HP)
22. Director, Forensic Science Laboratory Opposite C.D. Hospital, Sri Nagar (J.K.)
1.12 Test Memo
n
The Samples of seized drugs or substances should be despatched to the respective laboratories
r.i
under the cover of a Test Memo which shall be prepared in triplicate in proforma NCB-I. This test
memo will be serially numbered for each unit effecting the seizure. The seizing officer will
e
carefully fill-up column 1 to 8 of the Test Memo and put his signature with official seal. The
nc
original and duplicate of the Test Memo should be sent to the Laboratory concerned alongwith
the samples. The triplicate shall be retained in the case file of the seizing officer.
re
1.13 Mode and time limit for despatch of sample to Laboratory.

The samples should be sent either by insured post or through special messenger duly authorised
fe
for the purpose. Despatch of samples by registered post or ordinary mail should not be resorted
.re
to. Samples must be despatched to the Laboratory within 72 hours of seizure to avoid any legal
objection.
1.14 Each Unit of every Enforcement Agency will maintain a Register of samples to monitor the
w
progress of testing, which will have the following columns:-

w
w
Crime No. Date of Seizure Name & Address of offender Description of seized drugs
and yet qty.
1 2 3 4
Name of the officer drawing S. No. of samples and S. No. of Test Memo Reference
and despatching the sample. Packages/containers from
which samples were drawn.
5 6 7
Name & Designation of The authority to whom Date of receipt of analysis

custodian of sample. Despatched. Result and Its reference.
8 9 10
Results in brief Date of receipt of remnant Date of Destruction/ disposal of

sample. remnant samples.
11 12 13
Date of destruction/disposal Remarks

of duplicate samples.
14 15
www.referencer.in
211
The register should be received once a month by the Head of unit and once in three months by the
supervising officer.
1.15 Receipt in the Laboratory.
The sealed envelope containing the samples received in the Laboratory concerned should be
carefully opened so as to preserve the seals on the envelope to be sent back along with the report on the
test for evidence purposes. In the laboratory every sample received for test must be given a distinct
Laboratory number. A separate register for Narcotic Drugs and Psychotropic Substances shall be
maintained. The Laboratory may further sub-divide the register Agency-wise. The Laboratory number
should form a continuous series, beginning on the 1st January every year and ending on the 31st
December. The sample clerk must enter the laboratory number and the date of registration on the Test
Memo and enter the same number with date of registration on the label of the sample container. Often
there may be number of samples coming under once Test Memo, each sample must be given a separate
number and all the numbers must be entered on the Memo.
The samples and memos having been marked with Laboratory numbers should be entered in a
Register. The headings of the columns in the register will be as indicated below: -
n
S. No. Date of receipt Name of the officer drawing Test Memo
r.i
(Lab. No.) & despatching the sample Ref. & Date
1 2 3 4
Description of the drug To whom allotted

e Date of receipt by the concerned
nc
as per the Test Memo chemist with his signature
5 6 7
Details of Test results Date of despatch of Remarks

re
remnant samples
8 9 10
fe
Note: Columns & 6 should be filled up respectively at the time of actual forwarding of the sample to the
.re
concerned chemist.
Allotment of Samples
w
Samples of narcotic drugs and psychotropic substances should be taken to the chemical
examiner or such officer in the Laboratory for this purpose. He will mark the sample to a chemist. While
w
so doing the chemical examiner or such officer will kept in view the provisions of section 293 of Cr. P.C.
w
The sample clerk will hand over the sample and test memos to the chemist named as above and obtain
his initial for receipt in his register. All drug samples must reach such chemist the same day and the
chemist will keep the samples in his safe custody under lock and key in his steel almirah, provided for the
purpose.
Examination of sample with reference to Test Memo

On receipt of the samples such chemist will examine the same and record its weight in the Test
Memo. He will compare the markings on the Test Memos with the markings on the packages/containers.
It will be his responsibility to ensure that he tests the relevant sample.
Expeditious test
Expeditious analysis of narcotic drugs and psychotropic substances is of essence to all
proceedings under N.D.P.S. Act, 1985. In many cases the court may refuse to extend
Police/judicial remand beyond 15 days in the absence of a chemical report. Accordingly, it is
essential that the analysis is completed and the report is despatched within 15 days from the date
www.referencer.in
212
of receipt of the sample. However, where quantitative analysis requires longer time, the results of
the qualitative test should be despatched to the officer from whom the samples were received
within the aforesaid time limit on the original copy of the Test Memo so that court proceedings
can start immediately. In the next 15 days the results of quantitative test (purity of the drug)
should also be indicated on the duplicate test memo and sent to the officer from whom the
samples were received.
1.18 Test Register
All results both the qualitative and quantitative tests should be entered into the Register of
samples (para 1.15). This register is intended to serve as a reference and as such should be
quite durable, It should carry the results and the date of despatch with reference to the Test
Memo. There should be clear and adequate reporting of the results in the Test Memo. As soon as
the analysis is over the test result should be despatched by registered post in the name o the
officer who forwarded the sample for test.
1.19 Remnants of samples
Remnants of all narcotic drugs and psychotropic substances samples should be returned with
reference to the Test Memo to the analysis of the drug.
n
1.20 Custody of duplicate sample
r.i
Duplicate sample of all seized narcotic drugs and psychotropic substances must be preserved
and kept safety in the custody of the Investigating officer alongwith the case property. Normally
e
duplicate sample may not be used but in case of loss of original sample in transit or otherwise or
nc
on account of trial court passing an order for a second test, the duplicate sample will be utilise.
1.21 Disposal of Test Memo
re
As soon as the test result in original or duplicate or both test memos are received, the same will
be filed in the Court, trying the case, alongwith charge-sheet / complaint by the Investigating
fe
officer. He will keep an attested copy of the same in his case file.
.re
1.22 Disposal of Remnant sample/duplicate sample and the drug

At present, the remnant sample/duplicate sample and seized narcotic drugs and psychotropic
substances can be disposed of after the proceedings of prosecution id over or by obtaining an
w
order from such court under section 110 of the Customs Act, 1962 and/or 451 of Cr. P.C. While
w
obtaining the order of the court under the aforesaid section it is necessary that specific order in
w
respect of the remnant sample/duplicate sample is also obtained .

After such order has been obtained, the drug or substance along with the samples
including remnants shall be disposed of in the manner prescribed. Please acknowledge the
receipt of the standing order.
STANDING ORDER NO. 1/89 Dated 13th June, 1989.
‘Whereas the Central Government considers it necessary and expedient to determine the manner
in which the narcotic drugs and psychotropic substances, as specified in Notification No.4/49
dated the 29th May, 1989 (F.No. 664/23/89-Opium, published as S.O. 381 (E), which shall, as
soon as may be, after their seizure, be disposed of, having regard to their hazardous nature,
vulnerability to theft, substitution and constraints of proper storage space:
SECTION 1 – DRUGS MEANT FOR DISPOSAL

Drugs 1. Narcotic Drugs :
Specified in 1) Opium
www.referencer.in
213
Notification 2) Morphine
No. 4/89 3) Heroin
Drugs meant 4) Ganja
For disposal 5) Hashish (Charas)
Specified 6) Codeine
7) Thebaine
8) Cocaine
9) Poppy straw; and
10) Any other manufactured drug as under clause (xi)
Of section 2 of the Act.
Psychotropic Substances :
1) Methaqualone,
2) T.H.C.,
3) Amphetamine and
4) Any other psychotropic substance, as defined under
n
Clause (xxiii) of section 2 of section 2 of the said Act.
r.i
SECTION II – GENERAL PROCEDURE FOR
SAMPLING, STORAGE, Etc.
Sampling 2.1
e
All drugs shall be properly classified, carefully, weighed and samples on
nc
Classification, the spot of seizure.
Etc. of drugs
re
Drawal of 2.2 All the packages/ containers shall be serially numbered and kept in lots for
Samples Sampling. Samples from the narcotic drugs and psychotropic substances seized,
fe
shall be drawn on the spot of recovery, in duplicate, in the presence of search

.re
witnesses (Panchas) and the person from whose possession the drug is recovered,
and a mention to this effect should invariably be made in the panchnama drawn on
the spot.
w
Quantity to 2.3 The quantity to be drawn in each sample for chemical test shall not be less than
w
Be drawn for 5 grams in respect of all narcotic drugs and psychotropic substances save in the
w
the sampling cases of opium, ganja and charas (hashish) where a quantity of 24 grams in
each case is required for chemical test. The same quantities shall be taken for
duplicate sample also. The seized drugs in the packages / containers shall be
Be well mixed to make it homogeneous and representative before the sample (in
Duplicate) is drawn.
Method of 2.4 In the case of seizure of a single package / container, one sample in duplicate
drawal shall be drawn. Normally, it is advisable to draw one sample (in duplicate) from
(a) Single each package / container in case of seizure of more than one package /
Container / package container.
(b) 2.5 However, when the packages/ containers seized together are of identical size
Bunch of and weight, bearing identical markings and the contents of each package given
packages/ identical results on colour test by the drug identification kit, conclusively
package indicated that the packages are identical in all respects the packages /
containers except in the case of ganja and hashish ( charas), where it may be
bunched in lots of, 40
Such packages / containers, one sample (in duplicate) may be drawn.
www.referencer.in
214
Bunching for 2.6 Where after making such lots, in the case of hashish and ganja, less than 20
(i) Hashish packages/containers remain, and in the case of other drugs, less than 5
and ganja packages/containers remain, no bunching would be necessary and no samples
need be drawn.
(ii) other 2.7 If such remainder is 5 or more in the case of other drugs and substances and 20
drugs or more in the case of ganja and hashish, one more sample (in duplicate) may be
drawn for such remainder/container.
Drawal of 2.8 While drawing one sample (in duplicate) from a particular lot, it must be ensured
representative that sample are in equal quantity is taken from each quantity is taken from each
samples: package/container of that lot and mixed together to make a composite whole
from which the samples are drawn for that lot.
Storage of 2.9 The sample in duplicate should be kept in heat sealed plastic bags as it is
samples - convenient and safe. The plastic bag container should be kept in a paper
procedure envelope which may be sealed properly. Such sealed envelope may be marked
as original and duplicate. Both the envelopes should also bear the S.No. of the
package (s)/container (s) from which the sample has been drawn. The duplicate
n
envelope containing the sample will also have a reference of the test memo. The
r.i
seals should be legible. This envelope along with test memos should be kept in
another envelope which should also be sealed and marked ‘secret-drug’
e
sample/Test memo’, to be sent to the chemical laboratory concerned.
nc
Despatch of 3.0 The seizing officers of the Central Government Departments, viz., Customs,
samples for Central Excise, Central Bureau of Narcotics, Narcotics Control Bureau,
re
testing: To Directorate of Revenue Intelligence, etc. should despatch samples of the seized
whom to be drugs to one of the Laboratories of the Central Revenues Control Laboratory
fe
sent? nearest to their offices depending upon the availability of test facilities. The other
.re
Central Agencies like BSF, CBI and other Central Director, Central Forensic
Laboratory, New Delhi. All State Enforcement Agencies may send samples of
seized drugs to the Director/Deputy Director/Assistant Director of their respective
w
State Forensic Science Laboratory.

w
Preparation 3.1 After sampling, detailed inventory of such packages/containers shall be prepared
w
of Inventory for being enclosed to the panchnama. Original wrappers shall also be preserved
for evidentiary purposes.
SECTION III – RECEIPT OF DRUGS IN

GODOWN AND PROCEDURE
Custody of 3.2 All the drugs invariably be stored in safes and vaults provided with double-locking
Drugs in system. Agencies of the Central and State Governments, may specifically.
Godowns –
Storage designate their godowns for storage purposes. The godowns should be selected
Procedure keeping in view their security angle, juxtaposition to courts, etc.
Maintenance 3.3. Such godowns, as a matter of rule, shall be placed under the over-all supervision
of godowns and charge of a Gazetted Officer of the respective enforcement agency, who
and procedure for shall exercise utmost care, circumspection and personal supervision as far as
deposit of possible.
Drugs Each seizing officer shall deposit the drugs fully packed and sealed in the
www.referencer.in
215
godowns within 48 hours of such seizure, with a forwarding memo indicating

NDPE Crime No. as per Crime and Prosecution (C & P Register) under the new
law, name of the accused, reference of test memo, description of the drugs, total
no. of packages/containers, etc.
Acknowled- 3.4 The seizing officer, after obtaining an acknowledgement for such deposit in the
gement format (Annexure-I), shall had acknowledgement over such to the Investigating
to be obtained Officer of the case along with the case dossiers for further proceedings.
Action to 3.5 The Officer-in-charge of the godown, before accepting the deposit of drugs,
be taken by shall ensure that the same are properly packed and sealed. He shall also
Godown-in- arrange the packages/containers (case-wise and lot-wise) for quick
charge before retrieval, etc.
Acceptance of
drugs for deposit
Maintenance 3.6 The godown-in-charge is required to maintain a register wherein entries of
n
of godown receipt should be made as per format at Annexure-II.
r.i
register
Inspection 3.7
e
It shall be incumbent upon the Inspecting Officers of the various Departments
nc
by Inspecting mentioned at Annexure-Ii to make frequent visits to the godowns for ensuring
Officer adequate security and safety and for taking measures for timely disposal of drug.
re
The Inspecting Officers should record their remarks/observations against Col.15

of the Format at Annexure-II.
fe
.re
Prescription 3.8 The Heads of the respective enforcement agencies (both Central and State
of periodical Governments) may prescribe such periodical reports and returns, as they may
reports and deem fit, to monitor the safe receipt, deposit, storage, accounting and disposal
w
returns of seized drugs.

w
w
Pre-trial 3.9 Since the early disposal of drugs assumes utmost consideration and importance,
disposal of the enforcement agencies may obtain orders for pre-trial disposal of drugs and
drugs other articles (including conveyance, if any) by having recourse to the provisions
of sub-section (2) of section 52A of the Act.
Follow-up SECTION IV – ACTION TO BE TAKEN BY

action to be POLICE AND OTHER EMPOWERED
taken by OFFICERS FOR PRE – TRIAL DISPOSAL
Police and
Empowered
officers 4.0 Where any narcotic drug of psychotropic substance has been seized and
forwarded to the officer-in-charge of the nearest police station or to the officer
empowered under section 53, the officer, referred to in paragraph 3.3 …………of
the order shall prepare an inventory of such narcotic drugs or psychotropic
substances containing such details relating to their description, quality, quantity,
mode of packing, marks, numbers of such other identifying particulars of the
www.referencer.in
216
narcotic drugs or psychotropic substances of the packing in which they are

packed, country of origin and such other particulars as may be considered………
relevant to the identity of the aforesaid drugs in any proceedings under the Act
and make an application to any Magistrate for the purpose of -
Application (a) certifying the correctness of the inventory so prepared; or
to Magistrate (b) taking, in the presence of such Magistrate, photographs of such drugs or
for pre-trial substances and certifying such photographs as true; or
(c) allowing to draw representative samples of such drugs or substances, in the
presence of such Magistrate and certifying the correctness of any list of samples
so drawn.
Magistrate 4.1 Where an application is made under sub-section (2) of the section 52A of Act, the
to allow Magistrate shall, as soon as may be, allow the application.
Application
Courts to 4.2 Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872)
n
treat or the Code of Criminal Procedure, 1973 (2 of 1974), every court trying an
r.i
documents offence under this Act, shall treat the inventory, the photographs, or narcotic
and list of drugs or psychotropic substances and any list of samples drawn under sub-
ibid
e
section (2) and certified by the Magistrate, as primary evidence in respect of
nc
samples such offence.
certified by
re
Magistrate as
“primary
fe
evidence’
.re
Grounds to 4.3 While preferring an application under section 52A to any Magistrate, emphasis
be enumerate may be laid on ‘expediency of disposal’. The ground that may be high-lighted
w
in application may pertain to -

w
(i) risk of pilferage, theft and substitution;

w
(ii) constraints of storage and hazardous nature;

(iii) high potential and vulnerability of abuse;
(iv) high temptations to traffickers;
(v) diminution in the value of other articles (including conveyances) due to
long storage, etc.
Filling of 4.4 Since the filing of charge-sheet/complaint is condition precedent for expeditious
Charge-sheet/ issue of orders for pre-trial disposal, for expeditious issue of orders for pre-trial
Plaint disposal, complaints by the respective enforcement agencies must be filed after
Completion of investigation within the stipulated period of 90 days of
seizure/arrest , on a priority basis. This requires to be meticulously adhered to.
Documents 4.5 While moving the application under sub-section (2) of section 52A of the Act as
to accompany above, production of all seized articles/drugs, etc. along with the panchnama
Application (in original) and detailed inventory thereof is essential. The inventory shall
Be complete in all respects and contain such particulars, as may be relevant to
Establish nexus/identity of articles. The chemical analysis report should be
www.referencer.in
217
Simultaneously filed.
Mode of 4.6 After the court orders are passed for pre-trial disposal of drugs, those drugs
disposal of drugs which have no legitimate value (excepting opium, morphine, codeine and the-
on which court’s ,baine, which are required to be transferred to the Government Opium and
orders obtained Alkaloid Works Undertaking at Ghazipur or Neemuch, as the case may be) are
required to be destroyed consistent with the guidelines issued under this order
and not repugnant to the court’s order.
Application 4.7 As bulk of seizures of drugs relate to illicit import and are made at the points of
of Customs entry or exit or in transit traffic, such drugs are liable to seizure under section 110
Act of the Customs Act, 1962 and confiscation under sections 110 or 113 ibid. In
such cases, it would be appropriate to initiate proceedings under the Customs.
Act also.
SECTION 5 – CONSTITUTION &

FUNCTIONS OF DRUG DISPOSAL COMMITTEE
Constitution 5.0 A three Members Committee of the respective enforcement agencies (both
n
of Drug Central and States), known as the “Narcotic Drugs and Psychotropic Substances
r.i
Committee Disposal Committee” should be constituted to discharged its functions from the
Headquarters of the respective Heads of Departments. The Committee will be
e
headed by an officer not below the rank of –
nc
(i) Deputy Collector of Customs and Central Excise with two Members of
the rank of Customs and central Excise in the case of Customs and
re
Central Excise Collectorate;

(ii) Deputy Narcotics Commissioner with two members of the rank of
fe
Assistant Narcotics Commissioner in the case of Narcotics

.re
Commissioner’s organisation;
(iii) Deputy Director of Revenue Intelligence with two members of the rank of
Assistant Director in the case of Directorate of Revenue Intelligence;
w
(iv) Deputy Director and two other officers, as may be authorised by the
w
Director General, Narcotics Control Bureau in the case of that

w
organisation;
(v) Deputy Inspector-General of Police with two members of the rank of
Superintendent of Police in respect of State Police Organisations; and
(vi) Deputy Commissioner of Excise with two officers of the rank of Assistant
Commissioners, in respect of State Excise Organisations.
5.1 The Committee will be directly responsible to the Head of the Department
concerned.
Functions 5.2 The functions of the Committee will be to,

(a) undertake detailed analysis of drugs pending disposal, and
(b) advise the respective investigation officers/supervisory officers on the steps
to be initiated for expeditious disposal.
Meeting by 5.3 The Committee shall meet, as frequently as possible, as may be considered
the necessary for quick disposal of drugs and at least once in two months. While the
Committee Central agencies shall endorse a copy of the minutes of such meetings directly to
www.referencer.in
218
the Narcotics Control bureau, the State enforcement agencies concerned shall
report the same to their respective State Police Headquarters (CID), who, in turn,
may keep the Narcotics Control Bureau informed of the progress made from time
to time.
Procedure to 5.4 The officers-in-charge of godowns shall prepare a list of all such drugs that have
be followed become ripe for disposal to the Chairman of the respective drug disposal
by the committee. After examining that they are fit for disposal and satisfying that they
Committee for legal proceedings and the approval of the court has been obtained for the
with regard purpose, the Members of the respective drug disposal committee shall endorse
to disposal of necessary certificates to this effect. The committee shall, thereafter, physically
drugs examine and verify the drug consignments with reference to the seizure report
and other documents like chemical analysis, etc., including its weighment and
record its findings in each case.
Variation in 5.5 The composite sample shall be drawn for getting the same tested by the Central
n
chemical Revenues Control Laboratory or the State Forensic Science Laboratory/State
r.i
analysis Drug Control Laboratory concerned. If no variation, either in the purity or
report - quantity is found, the same shall be ordered for destruction by the Department.
Further
e
Where any minor variations are noticed, a detailed report may be submitted to
nc
action to be the Head of the Department of the enforcement agency concerned. In the case of
taken wider variations, the matter should be immediately reported to the Narcotics
re
Control Bureau indicating reported the following-up action taken in this regard.
The destruction of drugs in such cases can be done only after obtaining the
fe
orders of the Head of the Department concerned.

.re
Power of 5.6 The Committee shall be empowered to order destruction of the seized drugs
Committee in the following cases :
w
For
w
Destruction of Name of drug Quantity (Kgs.)

w
Seized drugs
1. Heroin 2
2. Hashish (Charas) 50
3. Hashish oil 10
4. Ganja 500
5. Cocaine 1
6. Mandrax 150
7. Other drugs upto value of Rs. 5 lakhs
Intimation 5.7 The disposal Committee shall intimate the Head of the Department concerned
To Head of the programme of destruction (giving complete details) in advance (at least 15
Deptt. on days before the date of destruction), so that, in case he deems fit, he may either
destruction himself conduct surprise checks, or depute an officer for conducting such
surprise checks. The disposal Committee should inform the respective Heads of
Departments in respect of every destruction made by indicating the date of
destruction, quantities made by it indicating the date of destruction, quantities
www.referencer.in
219
destroyed, etc
Quantities 5.8 In those cases where the quantities exceed the above limits, destruction shall
In excess of be ordered and take place only under the supervision by the Head of the
delegation- Department himself along with the Chairman and Members of the Drug Disposal
Procedure to Committee.
be followed:
Mode of 5.9 All drugs excepting opium, morphine, codeine and the baine shall be destroyed
Disposal of by incineration in such places where adequate facilities and security
Drugs arrangements exist for the same after ensuring that this may not be a health
Hazard from the point of view of pollution. Open destruction of such drugs may
also be resorted to, wherever considered feasible and necessary, after due
publicity to gain the confidence of public. Wide publicity, in such cases, would be
consequential.
n
SECTION VI – MISCELLANEOUS
r.i
Certificate 6.0 A certificate of destruction (in triplicate) Annexure-III of containing all the relevant
of destruction data like godown entry no., file no., gross and net weight of the drugs seized,
e
etc., shall be prepared and duly endorsed by the signature of the Chairman as
nc
well as Members of the Committee. This could also serve the purpose of
panchnama. The original copy shall be pasted in the godwon register after
re
making necessary entries to this effect, the duplicate to be retained in the seizure
case file and the triplicate copy will be kept by the Disposal Committee.
fe
6.1 The procedure as outlined above should be followed by all Central and State
.re
endorsement agencies concerned. Other goods (including conveyance), ripe for

disposal may be disposed of by public auction or in such manner as is deemed
convenient in the best interests of the Government.
w
w
PROSECUTION UNDER N.D.P.S. Act, 1985- Various Facets

w
Drug control legislation has, as it primary aim, the prosecution of public welfare by preserving
health and eliminating undesirable social and moral effects commonly associated with the indiscriminate
use of narcotic drugs and psychotropic substances. Commercial traffic in deadly mind, soul and body-
destroying drugs is beyond doubt one of the greatest evils of our time. It cripples intellect, dwarf bodies,
paralyses the progress of a substantial segment of our society, and frequently makes hopeless and
sometimes violent and murderous criminals of persons of all ages who become its victims. The links
between illicit traffic and other related organized criminal activities, which undermine the legitimate
economies and threaten the stability, security and sovereignty of State, have been definitely established.
It also cannot be disputed that illicit traffic generates large financial profits and wealth enabling
transnational criminal organization to penetrate, legitimate commercial and financial business, and society
at all its levels. Such consequences call for the most vigorous laws to suppress the traffic as well as the
most powerful efforts to put these vigorous laws into effect. Accordingly the Narcotic Drugs &
psychotropic substances Act was enacted in they year 1985, and to make it more effective and powerful,
it was amended in the year 1989.
www.referencer.in
220
Substantive and procedural principles generally prevailing in favour of the subjects have been
restricted or excepted. Culpable mental state of the accused, wherever required, is to be presumed, and
it is for the accused to prove its absence beyond reasonable doubt (s.35). The Court is empowered to
raise a presumption against the accused that he has committed an offence under Chapter IV of the Act if
he fails to account satisfactorily for the possession of an incrimination article under the Act.(S.54).
Further, the Court is required to raise a reputable presumption as to the admissibility and proof of any
document where such document is produced or furnished by any; person or is seized from him under this
Act or under any other law i.e. like Custom & FERA, or which has been received from any place outside
India during the investigation of an offence under the Act (S.66). Thus, the burden of proof on the
prosecution has been lightened to a great extent. Further, an incriminating statement made by a person
before officer authorised under S.53 of the act is admissible in evidence and is not hit by S.25 of the
Evidence act. Still further, a statement made and signed by a person before such officer during the
course of any enquiry or proceedings can be admitted as substantive piece of evidence at the trial.
(53A), The plain object of the Legislature in making these drastic provisions was to subordinate the
interest, of an ordinary citizen to the wider social and economical interest of the community and the needs
of the law Enforcement Agencies.
n
r.i
Discretion of the Court to release an accused on bail has been curtailed to a great extent.
Powers of the High Court to suspend sentence and grant bail to a convict during the pendency of his
e
appeal against conviction and sentence have been taken away. Minimum sentence in case of conviction
nc
has been prescribed. The powers of the court to deal with a convict under S.360 of the code of Criminal
Procedure or under the provisions of the probation of offenders Act have been restricted. Powers of the
re
Executive to suspend, commute or remit sentence of a convict for an offence under the Act have been
taken away (S.32A). Power to search by day or night, either premises or the person, is largely extended.
fe
Clause (b) of S.43 confers wide powers on the officers to arrest even a person who is in the company of
.re
someone who is found to be in unlawful possession of narcotic drug or psychotropic substance. Besides
attempt, even preparation to commit an offence under the Act has been made punishable. All of these
provisions are indicative of the will of Parliament to give the most efficient protection, to public health
w
against the danger attending the uncontrolled use of drugs as well as against the social evils incidental
w
thereto and to save the national economy from the menace of drug trafficking.
w
Simultaneously, the legislature, in order to protect the interest of an innocent person against
vexatious search and unfair dealings, has provided certain safeguards in Secs. 41 to 43, 50,52,55 and
57. It is not every officer who can carry out search without warrant. Only such officer who is empowered
under Secs. 41 and 42 is authorised to exercise the powers of entry, search, seizure and arrests without
warrant. The applicability of the provisions of S.100 of the Code of Criminal Procedure to the search and
seizure under the Act has been saved by S.51 of the Act. The search of a person if he so requires, is to
be taken before a Magistrate or a Gazetted Officer of any of the departments mentioned in S.42. The law
appears to avoid the allegation by the accused that the drug has been planted on him, and also to provide
material to the Enforcement agency to prove the credibility of the search and seizure. Protection against
arrest and detention is contained in s.52 of the act. S.55 enjoins a duty upon an officer – in – charge of a
police station to receive and keep in safe custody the goods and articles seized under the Act, thus
putting the seized material beyond the reach of the seizing officer and also eliminating the possibility of
the samples being tampered with till the same reach the hands of the expert. The concerned officer is
required to make a full report within 48 hours of every arrest of seizure made by him to his immediate
superior.
www.referencer.in
221
Keeping in view the aim and object of the Act, the drastic provisions enacted to achieve the
objects let us turn to the question of prosecution of an accused under the Act. We can safely say that the
process of prosecution under the Act commences with the receipt of information or having reasons to
believe regarding the contravention of the provisions of Act, and ends with the judicial pronouncement of
conviction or acquittal, as the case may be. In between these two points, the Enforcement Agency is to
cover a long distance.
At the outset, it may be noted that the controversy among the various High Courts regarding the
scope of Secs. 37 and 53 has been finally settled by the authoritative pronouncements of the Supreme
Court of India. In Kishan Lal’s cases, it stands settled that the limitations contained in S.37 (1) (b) to
release on ball a person accused of an offence under the Act are applicable to be exercise of the powers
under S.439 of the code by the High court. In Raj Karawal’s case, it is finally decided that an Officer,
other than a Police Officer, authorised under S.53 is not a police officer and any incriminating statement
made to him is not hit by S.25 of the Evidence Act.
There is a third decision of the Supreme court in Rajnikant Jivan Lal Patel’s case that where the
bail has been granted to an accused under the proviso to S.167 (2) of the Code for default of the
prosecution in not completing the investigation and filing a charge – sheet within the prescribed period,
n
after the defect is cured by filing of the charge – sheet, the prosecution may seek to have the bail
r.i
cancelled on the ground that the accused has committed a non – bailable offence and that it is necessary
to arrest him and commit him to custody. But this view has been dissented from in a recent decision of
e
the Supreme Court in Aslamhai v. State of Maharashtra, III (1992) CCR 292 (S.C.). It has been held:
nc
“Once the accused has been released on bail his liberty cannot be interfered with Highly i.e. on the
ground that the prosecution has subsequently submitted a charge – sheet. Such a view would introduce
re
a sense of complacency in the investigating agency and would destroy the very purpose of instilling a
sense of urgency expected by Sections 57 and 167 (2) of the code. We are, therefore, of the view that
fe
once an accused is released on bail under Section 167 (2) he cannot be taken back in custody merely on
.re
the filing of a charge – sheet but there must exist special reasons for so doing besides the fact that the
charge – sheet reveals the commission of a non – bailable crime. The ratio of Rajnikant’s case to the
extent it is inconsistent herewith does not, with respect, state the law correctly.”
w
w
In respect of the rest of the procedural provisions, there is a sharp difference of opinion among
w
the various High Courts in the country. To begin with there is a controversy regarding the powers of the
Magistrate, the Special Court and the Court of Sessions to grant remand of the accused under S.36 a,
and also regarding the applicability of the proviso to S.167 (2) of the Code to an offence under the Act in
the face of S.37 (1) (b) of the Act. Then the Courts differ on the scope and effect of non-compliance of
Secs. 41 to 43 of the Act. Again, there is a serious divergent of opinion on the question whether the
provisions contained in Secs. 50, 52,55 and 57 are mandatory or directory, and what is the effect of any
irregularity or illegality in the pre – trial investigation of a case under the Act. The Courts are also not
unanimous regarding their approach to a case under the Act, the principles regarding the appreciation of
evidence, and the minimum standard of proof required in such cases. These controversies have resulted
in unwanted acquittals and I may say so defeated the object of the enactment rather than achieving it.
The blame cannot be thrown upon the shoulders of the judiciary alone in interpreting the Act and its
approach to the problem, but the implementing agencies and the prosecutors are equally responsible.
As regards the powers to grant remand, a procedure different from the one in the matter of
authorising detention in the Code of Criminal Procedure has been provided by Cl. (b) of S. 336a and the
Magistrate can authorise detention of a person suspected of the commission of an offence, in such
custody as he thinks fit for a period not exceeding fifteen days in the whole where such Magistrate is a
www.referencer.in
222
Judicial Magistrate and seven days in the whole where such Magistrate is an Executive Magistrate. It is
noteworthy that a Judicial Magistrate cannot grant remand for a period exceeding 15 days which he can
do otherwise under S.167 of the Code of Criminal Procedure and is obliged even if he considers the
detention of the person to be unnecessary to order such person to be forwarded to the Special Court
having Jurisdiction. If further detention is necessary, that power has to be exercised under C1. (c) of S.
36A by the Special Court, in relation to the person forwarded to it under C1.(b) and it shall have the same
power which a Magistrate having jurisdiction to try a case may exercise under s.167 of the Code of
Criminal Procedure in relation to an accused person in such case who has been forwarded to him under
that section. (Suryakant Ramdas V. State of Maharashtra, 199 Cr.L.J.2422). In view of s.36 – A
stipulating a period of 15 days for the remand and as the Magistrate has to forward the accused to the
Special Court before the period detention authorised by him and as the Special Court gets the seizing
over the matter, it cannot be said that the Magistrate can extend the period of remand in a case where the
accused has been brought before him for offences under the ND.P.S.Act. Thus, it is abundantly clear
that a Judicial Magistrate cannot authorise the detention of an accused or suspect taken into custody for
an offence under the Act, for a period exceeding 15 days. (In re: District Judge, II (1992) CCR 1913
(Kerala – D.B.). A detention exceeding 15 days under the orders of the Judicial Magistrate is
n
unauthorised and illegal. Reference may be made to Suryakant Ramdas V. State of Maharashtra, 1989
r.i
Cr.L.J.2422. In re.....an Accused, 1992 Drugs Cases 95. In re District Judge, II (1992) CC.R.1913
(Kerala). Aslam Khan V. State of M.P., 1992 Drugs Cases 106, and Kalam Khan V. State, 1991 Drugs
Cases 414.
e
nc
As already referred to, on the expiry of the initial period of remand of 15 days the Judicial
Magistrate is bound to forward the accused to the Special Court having jurisdiction, and the Special Court
re
shall have the powers under S.167 of the Code to grant further remand of the accused. The question
arises whether in the event of a Special Court having not been established or constituted, the Magistrate
fe
is required to forward the accused to the Court having not been established or constituted, the Magistrate
.re
is required to forward the accused to the Court of Session and Court of Session would have the same
powers and obligations as of the Special Court by virtue of the transitional provision of S. 36D of the Act.
After discussing the rule of interpretation of statutes as laid down by the Supreme Court in Commr.
w
Income – tax V. National Taj Traders (AIR 1980 S.C.485)., a Single Bench of the Mumbai High Court in
w
Suryakant Ramdas More V. State of Maharashtra (1989 Cr.L.J.2422), held: “Though the Narcotic Drugs
w
and Psychotropic Substances Act, 1985, is a penal statute, the provisions which call for interpretation in
the present case are regarding the procedure or the machinery provision as pointed out by the Supreme
Court. Giving restricted meaning to the language of S. 36D (1) could evidently lead to an absurdity and
make the entire statute unworkable. If this consequence can be saved and it appears to be that it was
intended to be saved by using the expression in its widest connotation, no other construction can be
placed on the language of that section. Viewed in this light having regard to the scheme of the Act and
the context in which amended provision of S. 36D occurs, it seems obvious to me that the court of
session shall have all the powers, duties and obligations with which the Special court has been given.
There can, therefore, be no doubt that the learned Additional Sessions Judge was entitled to authorise
detention and in the event of a charge – sheet being filed or a complaint being lodged, he would be
entitled to take cognizance of the offence and then proceed to trial by following the procedure prescribed
by the Act.” A similar view was subsequently expressed in Daji Govind Kamble V. state of Maharashtra
(1991 Drugs Cases 98). A contrary view appears to have been taken in R.P.Patnkar,
Asstt.Commissioner of Customs V. Musa Wamila, (III(1992) CCR 2223 (Bom) ). By a Single Bench
without noticing the earlier two decisions of the same Court cited above. Reference may also be made to
P.R>Muthu V. State, 1992 Drugs Cases 130 (Mad). In the matter of State Circle Inspector, 1992 Cr.L.J.
www.referencer.in
223
570 (kerala), and Banka das V. State of Orissa, II (1992) CCr 1803. However, the Orissa High Court has
expressed a contrary view in Govind Sharma V. State of Orissa, 1992 Drugs Cases 163. Thus the
majority view is that in the event of a Special Court having been not established in any area, the Court of
Session has the same powers and obligations as of the Special Court including the power under S.167 of
the Code.
However, in the Union Territory of Delhi, and in the States of Punjab & Haryana, Himachal
Pradesh and Rajasthan, the Metropolitan Magistrates / Judicial Magistrates are granting remand under
S.167 of the Code for more than 15 days, and the Sessions Courts are taking cognizance only on a
committal order by such Magistrates.
Coming to the question of the applicability of the proviso to S.167 (2) of the Code to an offence
under this Act, the Kerala High Court in Appachan V. Excise Circle Inspector, 1991 Drugs Cases 105
held: “S.167 of the Code is a general provision relating to investigation and enquiry of a case. S.51 of
the N.D.P.S. Act says that the provisions of the Code O Criminal Procedure are applicable for the
purpose of investigation of the crime made punishable under the N.D.P.S.Act it is stated that the
restriction imposed therein is not withstanding anything contained in the Code. But this provision has no
overriding effect on S.167 of the Cr.P.C. It could only be understood that the restriction imposed under
n
S.37 of this Act, regarding granting of bail is not with standing any provisions contained in Chapter XXXIII
r.i
of the Code. S.167 (2) Cr.P.C. has been introduced with a view to see that there is no unnecessary delay
in the investigation and to protect the accused from unscrupulous police officers and the right of an
e
accused to be released on bail after the stipulated period is absolute.” While affirming this view in Berlin
nc
Joseph @ Ravi V. State, 1992 Drugs Cases 98 (Kerala), a Full Bench of the Kerala High Court observed:
“If section 37 of the NDPS Act is allowed to control or restrict the application to proviso to Section 167 (2)
re
of the Code. The latter provision would become ineffective and a dead latter. The result of the
discussion is that Section 167 (2) would be operative even for offences under the NDPS Act and then
fe
Section 37 of the NDPS Act has no application. In other words, Section 37 of the NDPSAct does not
.re
override Section 167 (2) of the Code.” A similar view has been adopted by the High Courts of Calcutta in
Mohd.Abdul V. State of W.B. 1991 (2) Crimes 741, Mumbai in Smt.Nanda V. State of Maharashtra, 1991
(2) Crimes 678, Madhya Pradesh in Kalika Prasad V. State of M.P., 1991 Drugs Cases 2 and Orissa in
w
Dayanidhi khilla V. State, 1991 Drugs Cases 2 and Sanalari Sahu V. State of Orissa, 1992 Cr.L.O.352.
w
Delhi High Court also adopted this view in Imam V. C.B.I., Cr. Misc. (M) 11 of 92, decided on 15.07.92. A
w
contrary view has been taken by the Delhi High Court itself in Abdul Sattar V. State, 1992 (2) Crimes 142,
and also by the Mumbai High Court in Prahlad V. State of Maharashtra, 1991 Drugs Cases 233 and the
Calcutta High Court In Munja Bibi V. State of W.B., 1992 Drugs Cases 174. Thus, the majority view is
that the benefit or privilege under the proviso to S.167 (2) of the Code is neither restricted nor barred by
the provisions of S.37 of Act which are applicable only to a case on merits. Immediately after the
commencement of the Act, the Punjab & Haryana, Himachal Pradesh, Rajasthan and Madhya Pradesh
High Courts adopted a view that since the respective State Governments had not issued the necessary
notifications authorising various officers including police under Ss.41, 42,53 and 67, the search, seisure
and arrest under the Act by any police officer, how high so ever he might be, was unauthorised and
illegal, and numerous prosecutions were quashed on this short ground. The transitional provisions of
S.24 of the Act and the provisions contained in S.24 of the General Clauses Act were neither noted by
any of these High Courts, nor the Public Prosecutors or the State Counsel drew the attention of their
Lordships to these provisions. This view was first propounded by the Punjab & Haryana High Court in
Karam Singh V. State, 1987 (2) C.L.R.2401, and was followed in several cases including Harbhajan
Singh V. State of Haryana, 1988 (1) F.A.C. 105 and Bhajan Singh V. State of Haryana, 1988 (1)
F.A.C.208. This view was followed by the Rajasthan High Court in Mand Lal V. State, 1988 (1) F.A.C.25
www.referencer.in
224
and Umrao V. State, 1989 (1) F.A.C.51 and other cases. It is important to note that the view taken by the
Pb. & Har. High Court in Karam Singh’s case was set aside by the Supreme Court in Criminal Appeal
No.416 of 1988 decided on 09.08.1988 on the ground that the High Court omitted to consider the
provisions of S.74 of the Act and remitted the case to the High Court for its disposal according to law.
Perhaps this decision was not brought to the notice of any of the aforesaid four High Courts, and the
prosecutions were quashed for want of notifications as before.
However, when reference to S.74 of the Act was made in Hakam Singh V. Union Territory of
Chandigarh (1988 Drugs Cases 307), it was observed that the provisions of S.74 were meant only for a
short period to enable the Central Government or the State Government to issue the necessary
authorising notifications, and it cannot be taken advantage of for any period to the discretion of the Officer
or the respective Government. A similar view appears to have been taken by a Single Bench of the
Madras High Court in Sivakumar V. State, 1989 Drug Cases 285. With due respect it is submitted that
their lordships considered the provisions of S.74 as a transitory provision is meant for a Short period,
where as ‘transitional’ means changing over to another form or passage from one state, subject, set of
circumstances to another. See Surajmal Kanaiyalal V. State of Gujarat, 1991 Cr.L.J.1.83 (Gujarat). The
Courts cannot fix any time limit much less reasonable time within which the State Government could be
n
directed to issue authorisation notifications under Ss.41 & 42.
r.i
The matter may be looked from another angle. In a Mumbai case (Rekha Parameswari V. Asst.
Commissioner of Customs, 1992 Cr. L.J.901), the accused, who was scheduled to board a flight, crossed
e
the frontiers of the Customs Check. While she was being undergoing security check, suspicon arose as
nc
to her keeping some article concealed in her person. The lady Security Officer, although not an
authorised or designated Officer under Ss.41 & 42, happened to recover narcotic substance from the
re
custody and possession of the female by search of her person. Can such search, seizure and arrest be
said to be violative of Ss.41 & 42 of the Act and illegal? The answer is in the negative since the seizure
fe
and arrest in the peculiar facts and circumstances of the case cannot at all be stated to have caused any
.re
prejudice to the accused vitiating the entire prosecution.

Another controversy regarding Ss.41 & 42 is that the provisions being mandatory in nature and
procedural safeguard of reducing the information into writing must be complied with, and non –
w
compliance there with would be fatal to the prosecution. The Punjab & Haryana High Court in Hakim
w
Singh V. U.T. Chandigarh, the Himachal Pradesh High Court in State of H.P. V. Sudershan Kumar, the
w
Gauhati High Court in Md. are sharing this view. Jaimulabdin V. State of Manipur (1991 Drugs Cases
424), and the Madhya Pradesh High Court in Mariappa & others V. State of M.P.(1991 Drugs Cases 145)
and Gurcharan Singh V. State of M.P., 1992 (3) Crimes 412.
It may be noted that no distinction was made between the seizure and arrest under S.42 on the
one hand and S.43 on the other. The provision of recording in writing the information received by such
officer and forthwith sending the copy of such writing to the immediate official superior is advisedly made
to prevent the empowered officer from misusing the power of entry into the building, conveyance or place,
which are considered to be the protected places for an individual, who has right to exclude the outsider
and the privacy of the occupants of such places may not be disturbed. A house or such protected place
is considered to be a fortress of a person and he has right to prevent or exclude other persons and that
right is always protected by the State. Such procedure restricting the entry and search is, therefore,
made in Sec.42. Section 43 gives plenary power to the Officers to seize in a public place or in transit any
narcotic drug or psychotropic substance and to detain and search any person, whom he has reason to
believe has committed the offence. The only restriction is that the Office on any Department specified in
Sec.42 can exercise such powers. The provisions of S.43 are applicable in case of detaining and
searching any person in a public place or for any search and seizure in a conveyance, etc. Secs. 43 and
www.referencer.in
225
49 nowhere require that the information received be reduced into writing. Further, it should be kept in
vice that if at that time secret information is reduced in writing and is recorded in the daily diary being
maintained by the Duty officer, the possibility of the secret information leaking out immediately cannot be
ruled out which may result in the raid being abortive, Still further, the name of the informer is always
privileged, and cannot be asked or compelled to be disclosed. It has been further held that non-reducing
the information in writing is merely a procedural irregularity, which does not affect or vitiate the recovery.
Reference may be made to Richhpal v.State (1989 Drugs Cases 97), Sunil Kumar v. State (1991 Cr.L.J.
414-Delhi), Sunil Kumar v. State (1991 Cr.L.J.414-Delhi), Lachho Devi v. State (1991 Cr. L.J. 2793-Delhi),
Santokh Singh v. State (Delhi), 1991 Cr.L.J. 147, Rashid V. State of Rajasthan, 1991 Cr.L.J.733 (Raj.),
Hardeo Gujjar v. State of Rajasthan, (1990 Drugs Cased 231), Surajmal Kanaiyalal Scni v. State of
Gujarat, 1991 Cr. L.J. 1483, Ismail & others v. State of Kerala, 1992 Drugs Cased 63, Abdul Sattar v.
State 1989 Drugs Cases 50 (Bom) and Abdul Karim v. State of Maharashtra 1990 Mah. L.J. 1991).
S.50 enjoins upon an officer about to search a person under the provisions of Ss. 41 to 43, if such
person so requires, take such person without unnecessary delay to the nearest Gazetted Officer of any of
the departments mentioned in S. 42 or to the nearest Magistrate. The object is to ensure that the officers
who are charged with the duty of conducting searches, conduct them properly and do no harm or wrong,
n
such as planting of offending drugs by any interested parties, and prevent fabrication of any false
r.i
evidence. The provision id intended to act as a safeguard against vexatious search and unfair dealings,
and to protect and safeguard the interest of an innocent person. It also provides a weapon to the law
e
enforcement agency against the common allegation that the drugs have been planted by these officers.
nc
The controversy among the High Courts is on the Question as to whether it is obligatory on the officer,
about to search a person, to inform such person of his said right and choice. One view is that the words “if
re
such person so requires” implies a right in and choice of the citizen. Unless the person has the knowledge
of his said right and choice, the question of the exercise thereof couldn’t arise. Therefore, it is imperative
fe
to the said officer to inform the person concerned of his right to be searched in the presence of a
.re
Gazetted Officer, or Magistrate. Noncompliance has been held to be perse fatal to the prosecution. This
view is supported by the decisions of the Punjab & Haryana High Court in Hakim Singh v.
U.T.Chandigarh (supra), Jang Singh v. State of Haryana, 1988 (1) FAC 91, Kheta Singh v. State of
w
Punjab, 1991 Drugs Cases 273, Amrit Singh v. State of Haryana (supra), State of Punjab v. Bikkar Singh,
w
1992 Drugs Cases 166 and State of Punjab v. Shingara Singh, 1992 (2) Crimes 1125, Himachal Pradesh
w
High Court in State of H.P. v. Sudershan Kumar (supra), Madhya Pradesh High Court in Salamat Ali v.
State, 1992 Drugs Cases 338, Delhi High Court in Om Prakash v. State, 1992 Drugs Cases 23,
Rajasthan High Court in Pirthvi Raj v. State, 1988 Cr. L.J. (Raj) 718, Chhoteylal v. State of Rajasthan,
1989 (2) R.L.R. 147 and nathiya v. State of rajasthan, 1992 Drug Cases 28, and the Gauhati High Court
in Md. Jainulabdin v. State of Manipur (Supra).
On the other hand, it has been held that the section (S.50) does not specifically provide that such
person should be informed by the authorised officer that it is his right to be taken to the Gazetted officer
or to the Magistrate nor does it impose any obligation or duty on such officer to inform such person. In
absence of any such provision imposing the duty on the authorised officer to inform the person who is to
be searched, it cannot be said that the officer is bound to inform of such right to the person to be
searched, much less it can be said that in case such person is not reminded of his right, breach of any
statutory provision is committed, vitiating the investigation and proceedings. As no specific provision is
made imposing the duty on the authorised officer to inform the person to be searched of his such right, it
cannot be said that in case no such information is given, any branch is committed by such officer or any
mandatory provision is violated. This view has been expounded by the Bombay High Court in Abdul
Sattar v. State (supra), Hemant Vyankatesh v. State of Maharashtra (supra) Abdul Karim v. State of
www.referencer.in
226
Maharashtra (supra). Wilfred Joseph v. State of Maharashtra, 1991 Drugs Cases 238, Shakal Abdul
Gafoor v. U.O.I., 1991 (1) Bom. L.R. 270, Suresh Kumar Khandelval v. State (Goa Beach), Miss Ulrike
Appelhangen v. State of Goa, 1991 (2) Crimes 789 and Sham ramchandra Sonawane v. State of
Maharashtra, 1992 Drugs Cases 55, and Gujarat High Court in Surajmal Kanaiyalal v. State of Gujarat,
1991 Cr. L.J. 1483.
Cases have arisen where there was no prior information and narcotic drug or psychotropic
substance was recovered in a totally unexpected and sudden manner, e.g. during a routine security
check up at the Airport, or where the accused was being personally searched under S. 51 of the Code on
account of the commission of another offence. Thus, after the sudden recovery in such like manner, the
question of complying with the provisions of S.50 of the Act cannot and does not arise. Refernce may be
made to David R. Hall v. State 1991 Cr. L.J. 143 (Delhi), Bennchard J. Framous v. State, 1992 (2) Crimes
778 (Delhi), Rekha Parameswari v. Asstt. Collector of Customs, 1992 Cr. L.J. 1412 (H.P.).
However, in Kailash Singh v. State, 1989 (1) PAC 124, a Single Bench of the Delhi High Court
observed; “I have gone through the FIR of the case as well as the statements of the a fore said witnesses
and find that in this case no offer was made to the appellant that he could be brought before any gazetted
officer or magistrate for taking his personal search. A salutary provision has been made in this Act
n
keeping in view the heavy punishment which is liable to be imposed in case a person is found guilty of
r.i
particular offence under NDPS Act So, it is rather incumbent on the police parties to see that the salutary
provisions contained in Sections 42 to 55 of the NDPS Act are complied with. These provisions have
e
been made so as to ensure fair investigation of the cases being brought under this Act. It is true that if
nc
from the evidence on the record one can come to the conclusion without any doubt that the recovery
effected from a particular accused is qenuine then may be in same cases it can be said that
re
noncompliance of one or other provisions preceding the recovery would not render such recovery invalid
but where no reasons are given for not complying with the requisite provisions preceding the recovery
fe
then lingering doubt does arise regarding the genuineness of the recovery.
.re
Then in the series come S.52 (1) and S.57 of the Act, the provisions of which are said to be
mandatory in character. The reason is that the right to be informed about the grounds of arrest contained
in Section 52 (1) and the requirement of Section 57 to the effect that any person making arrest or seizure
w
shall make full report to his immediate superior officer within 48 hours, confer valuable rights on the
w
accused. What he has to meet in the ……….. to do so would certainly prejulice his defense. Similarly,
w
them provision requiring the person making arrest or seizure to make a full report to his immediate
superior officer within 48 hours, brings into existence a document which can be used for purposes of
cross-examination in defense. The making of such a report within 48 hours will also bring an end the
possibility of improving the prosecution version after that time. If these provisions are not strictly complied
with, the prosecution version after that time. If these provisions are not strictly complied with, the
prosecution must fail. State of H.P. v. Sudershan Kumar (supra) and Zubeda Khatoon v. Asstt. Collector
of Customs, 1991 Cr. L.J. 1392 (karnataka). However, in Salamat Ali v. State, Drugs Cases 78, the
Madhya Pradesh High court has held that the provisions in S.52 of the Act has to be interpreted as
directory. Non-compliance with this requirement would not invalidate the entire proceedings and it is only
effect would be that the subsequent detention in consequence of such an arrest and not the initial arrest,
would be invalied, furnishing to the accused a valid ground for bail. Similar view has been expressed by
the Gujarat High Court in Surajmal Kanaiyalal Soni v. State of Gujarat, 1991 Cr.L.J.1483. Thus, where a
copy of recovery memo has been supplied to the accused at the time of his arrest and a copy of First
information report has been sent to the Magistrate and other higher Police Officer, there is sufficient
compliance of the provisions of S.52 (1) and S. 57 of the Act. In the decision in Saginaw Singh’s case AIR
1976 Sc. 2304 dealing with S.157 of Code, it has been held that the delay in dispatch of ……magistrate is
www.referencer.in
227
not a circumstance which can throw put the persecution case in its entirety. In the decision in Ishwar
Singh’s case (1976 Cri L.J. 1883) it has been held that in such a case the evidence of eye withnesses in
the circumstance, cannot be accepted on its face value.
There are numerous acquittals by different High Courts for non-compliance with the provisions of
S.55 of the Act. This seciton enjoins a duty upon an officer in-charge of the police station to receive and
keep in safe custody the goods and articles seized under this Act within the local area of his police
station. Further, he shall allow the officer accompanying such goods or articles to take samples
therefrom, and also to affix his seal to such goods, articles and the samples. Finally, the law requires him
to affix his own seal to all the samples. The clear intention of the legislature was a fair investigation by
putting the seized material beyond the reach of the seizing officer, and by eliminating the possibility of the
samples being tampered with till the same reach the hands of the chemical examiner.
A practice has grown up to show the arrival of the officer In charge of the Police Station on the
spot and affixing his seal on the recovered and sample packets. However, more often than once, it has
been held that the officer in charge of the Police Station never visited the spot, nor had he affixed the scal
before the articles were deposited in the Malkhana, because
(i) No daily diary entry is produced ot indicate that the Officer In charge of the Police Station
n
had left the said Police station at the relevant time.
r.i
(ii) At times, it has been found that the Officer In charge of the Police station as per the daily
diary entry was somewhere also.
(iii)
e
The Officer in charge of the Police Station has a jeep in which ordinarily he travels. The
nc
logbook maintained does not indicate his arrival at the spot.
(iv) While the case property is shown to have been deposited bearing the seal of the
re
investigating Officer in the Malkhana indicating that the Officer In charge; of the Police
station had also sealed it. Subsequently it is found that the seal of the Officer Incharge;
fe
has also been affixed when it was deposited and entry made in register Nos. 19.
.re
(v) Though in evidence it is pointed out that Officer In charge of the Police station deposited
the case property in the Malkhana, but in the Malkhana register, the entry made is that it
is Investigating Officer or the Duty Officer who deposited the case property.
w
It has been held in number of decisions that CFSL form must be filled up at the spot and facsimile of the
w
seals affixed on the CFSL from which as to be taken to the CFSL to facilitate the comparison of thes seal
w
affixed on it alongwith the sample that is sent.

The experience has shown that neither in the recovery memo, nor in register No. 19, there is any
mention of the deposit of the CFSL form. Even the Constables who take the sample invariably makes no
statement that they took the CFSL. Form.
Thus, the provisions of the Act just discussed are not intended as technical defenses on which
the prosecution must fail for that reason alone. In view of the stringency of the punishments, the
provisions are intended only as safeguards to protect the interest of the accused from unmerited
prosecutions. The question to be considered is only prejudice or failure of justice. Non-compliance or
delayed compliance or insufficient compliance could vitiate the prosecution only if it resulted in prejudice
and failure of justice. Normally an irregularity or illegality in the collection of materials cannot affect the
trial and conviction unless prejudice or failure of justice is the result. Ismail v. State of Kerala, 1992 Drugs
Cases 63. The provisions of a statute creating public duties are generally speaking directory. The
legislature while giving certain procedural instructions, With a view to require strict compliance thereof by
public functionaries, excluding all discretion on their part, uses the word “shall”. Nevertheless, non-
compliance; of these instructions per se does not result in rendering the acts done as null and void. It has
to be shown that such non-compliance has caused prejudice and failure of justice. Non-compliance has
www.referencer.in
228
caused prejudice and failure of justice. Non-compliance of a directory provision, apart from the question
of dereliction of duties, may also adversely affect the case set-up by the prosecution, Thus a provision
may be mandatory in the sense a public servant is required to observe the same but not mandatory in the
strict sense of the expression in that failure to observe it will per se vitiate-the entire proceedings without
the accused showing that such failure has resulted in prejudice to him. E. V. Kunhmu’s case, 1989 (2)
RAC 51. In H.N. Rishbud v. State of Delhi, AIR 1955 S.C. 196, it was said: “therefore where cognizance
is in fact taken, on a police report vitiated by breach of a mandatory provision relating to investigation,
there can be no doubt that the result of the trial which follows it cannot be set aside unless the illegality in
the investigation can be shown to have been brought about miscarriage of justice. That an illegality
committed in the course of investigation does not affect the competence and the jurisdiction of the court
for trial is well settled. Hence, where cognizance of the case has in fact been taken and the case has
proceeded to termination, the invalidity of the precedent investigation does not vitiate the result, unless
miscarriage of justice has been caused thereby.” Identical views have been expressed in Khandu Sonu
Dhori v. State of Maharashtra, AIR 1972 S.C. 958.
As regards the approach of the Court, it may be noted that at the conclusion of the trial the
prosecution can succeed only on discharging the unshifting burden of proving its case against the
n
accused and strongest of suspicion does not constitute the proof required. At the same time it has to be
r.i
remembered that witness is not a tape recorder and with lapse of time, memory may fail here and there
and thereafter, minor discrepancies which do not affect the substratum of case must not be permitted to
e
be made much (vide State of Punjab v. Wassan Singh, 1981. Cri L.J. 410). It is the duty of the Court to
nc
scrutinise the evidence with great care, and caution keeping in mind that it exists not only to ensure that
no innocent person is punished but also to ensure that quality persons do not escape Scot- free. In the
re
modern society the sense of social responsibility for variety, of reasons, is not all-pervasive and is waning
and so also the regard for truth. It may be remembered that the law does not require absolute certainty
fe
and this is clear from the definition of the term “proved” as embodied in S.3 of the Evidence Act and even
.re
where the prosecution is unable to get the support of independent witnesses the Court is not absolved of
its duty to record on the uncorroborated evidence of the departmental witnesses, if the same passes the
test of complete reliability in the crucible of probabilities and on the anvil of the objective circumstances of
w
the case a finding of guilty of the accused instead of treading the easy path of acquittal. In this conneciton
w
the decision in State of U.P. v. Pussu 1983 Cri L.J. 1356 is pertinent.
w
It would not be out of context to mention the effect of non-joining public witness has been
commented upon a number of occasions. In Chander Shekhar v. State, (1986) 2 Crimes 419 –1987
Cr.L.J. 1159 (Delhi), it was observed: “One of the greatest disadvantages of living in highly urbanized
areas is that people are out of sympathy with their neighbours and fellow citizens. This is for a variety of
reasons. None wants to get involved in such matters. Our experience is that in the recent post it is really
becoming difficult to involve public witnesses in court cases particularly in cases of capital offences. It is
common – place experience that in Delhi if an accident takes place, hardly any body feels concerned.
Life fast that no body has time to sympathise with a fellow citizen. We blame none for it as this is the life
style growing in highly urbanized areas. Even those who feel concerned keep away for fear of their own
security and getting involved in tardy proceedings. There is a subdued murmur that the law and order
agency has failed to provide security to the law abiding citizens and, what rules, now is the might and
ingenuity of the criminals. Under these circumstances it will be dangerous not to rely on relation witness
and police witnesses in such matters. Of course, provided, such witnesses are confirmed to be truthful
when tested at the yardstick of the peculiar facts and circumstances of each case. The court, therefore,
instead of doubting the prosecution case for want of independent witness must consider the spectrum of
www.referencer.in
229
the prosecution version and they search for the nugget of truth with due regard to probability if any,
suggested by the accused.
The authorities enforcing the provisions of the Act would only do well to bear in mind the
minimum requirement towards proof of guilt of an accused person without which however avowed and
laudable the object of the law be, the society would be compelled to live with such menace. Society in
general and our youth in particular can be saved and protected from the hazards of drug not by passing
rigorous laws alone but also by the effective, sincere and honest implementation by taking all legal steps
with due regard to the procedure established by law and placing before courts of law the requisite
adequate and acceptable material to punish the guilty. For lapses in effective implementation of social
legislation people in general who have no means of knowing such lapses are likely to lose faith in the very
judicial system while those who are responsible to render the judicial machinery ineffective by their acts
and omissions sit pretty with impurity and undeterred by serious concerns voiced by law courts. When
courts of law exist to do justice, it should be justice to all involved according to law.
[ “Abstract from Course Code – 3 NACEN New Delhi.” ]
n
e r.i
nc
re
fe
.re
w
w
w
@@@@@@@@@@@
www.referencer.in
CHAPTER - THIRTEEN
REWARDS
INTRODUCTION
Reward, as the expression itself implies, is an incentive given in cash or kind to somebody in
token of recognition of distinguished services rendered/tasks accomplished by him.
It is undeniable fact that providing information and assistance to the custom authorities in curbing
smuggling activities is the social and moral responsibility of the public at large and initiating action for
detection and prevention of smuggling is the official responsibility of the concerned staff. Yet, a little
incentive in the form of reward may go a long way in encouraging the public and the staff to make extra
efforts in detecting and preventing smuggling activities and / or seizure of contraband goods. The
government has been disbursing cash rewards to the informants and to the staff which are instrumental /
associated in the seizures of contraband goods and in other cases where revenue is realised to the
government and / or convictions in a court of law of the persons involved in such nefarious activities.
In the year 1985 the Govt. reviewed the existing policy on grant of rewards to informants & Govt.
Staff & issued revised guidelines vide letter F No. 13011/3/85 AD II dated 30-3-1985. The guidelines
n
alongwith Ministry’s clarifications and decisions issued from time to time are given below.
e r.i
REVISED GUIDELINES VIDE MINISTRY’S LETTER F NO. 13011/3/85 Ad II Dt. 30-3-85.
nc
Grant of rewards to informers and Govt. Servants – Review of policy, procedures and orders –
re
The Government have reviewed the existing policy, procedures and orders in respect of
grant of rewards to informers and Government Servants in case of seizures made, infringement or
fe
evasion of duty, etc. detected under the provisions of the following Acts:-
I) The Customs Act, 1962
.re
II) The Central Excises & Salt Act, 1944

III) The Gold (Control) Act, 1968
w
IV) The Foreign Exchange Regulation Act, 1973.

w
2. As a result, the revised guidelines are laid down in the succeeding paras. All previous
w
guidelines issued on the subject may be deemed to be modified to the extent indicated herein.
CLARIFICATIONS
A ) The date from which the revised instructions will take effect.
The revised rates of reward to Government Servants will be applicable to the cases wherein
seizures, etc. have been effected on or after 1st January,1985. It is further clarified that the revised rates
would not to applicable in respect of rewards to be paid to informers for information leading to seizure,
etc. received prior to 3rd March, 1985, the date on which the Government took a decision on the revised
rates of reward, etc.
B ) Whether advance rewards should be paid to departmental officers in past cases and how
rewards are to be sanctioned in respect of pending cases of seizures, detection etc. made prior to
1st January, 1985 in which final rewards have not been sanctioned and which came up for
consideration now:
Under the earlier orders there was no provisions for grant of advance rewards to Government
employees. This restriction has been removed after the issue of the revised guidelines on 30th March,
www.referencer.in
231
1985 and which have been given effect to from 1st January, 1985. As regards seizures, as in force on the
relevant dates, would apply their aspects, such as grant of advance reward to Government employees
eligible at the relevant time, monetary ceilings upto which competent authorities could sanction reward
would be governed by the revised instructions, if final rewards had not been previously sanctioned and
the cases come up for consideration now. It is further emphasized that the total amount available for
sanction of reward to both informers and government employees in the aforesaid cases would be
regulated by the old rates in accordance with the orders in force at the relevant time of seizures detection,
etc. Cases where rewards have been sanctioned before receipt of these orders need not be re-opened.
[Ministry’s clarification vide letter of even number of 5-6-85]
th
Attention is drawn to Ministry’s letter F. No. R.13011/3/85- Ad. V dated the 5 June, 1985 under
which grant of advance rewards to Government employees in respect of cases detected prior to 1st Jan.,
1985 has been provided. Doubts have been raised by some Collectors whether while determining the
quantum of rewards in respect of cases booked prior to 1-1-85, the monetary ceilings applicable as per
orders in force at the relevant time have to be taken into consideration or not. It is clarified that the
Collectors are empowered to sanction rewards in accordance with the revised rewards rules but the rates
and monetary ceilings applicable to relevant reward rules at the time of seizure / detection etc. are to be
n
kept in mind.
r.i
[Ministry’s further clarification vide letter of even number of 21-5-89]
e
C ) Whether rewards at the revised rates are payable for internal seizures of dangerous drugs and
psychotropic substances under the Opium Act / Dangerous Drugs Act to and after 1st January,
nc
1985 and seizures under the Customs Act made prior to 1st Jan., 85.
As clarified in para (A) above, the revised instructions issued on 30th March, 1985 would also
re
apply to seizures of the dangerous Drugs and psychotropic substance made under the Customs Act on or
fe
after 1.1.85. Further, having regard to the increased transit traffick in narcotic drugs through India, it has
been decided to extend the revised rates and instructions to cases of internal seizures of dangerous
.re
drugs and psychotropic substances made by the personnel of the Customs, Central Excise and Narcotics
Department under the Dangerous Drugs Act,1930 and Opium Act 1857 on or after 1st January, 1985 for
w
Government employees (including State Government employees who assist Officials working under
Central Board of Excise and Customs effecting seizures).
w
The guidelines indicated in para (B) above would also apply to the pending cases of Opium.
w
[Ministry’s clarification in letter of even number dt 5.6.85.]
Note -On 16th Nov. 1989, the Hon’ble Supreme Court of India stayed the sanction of rewards to informers
and Govt. Servants in all type of cases, both in Customs and Central Excise in the S. L. P. filed by M/S
Duncan Agro Industries Ltd. The stay was however, later made inapplicable to informers in seizure cases
of gold bullion, silver bullion and in narcotic smuggling cases.
On 28th Nov, 1994, the Hon’ble Supreme Court of India dismissed as withdrawn the SLP filed by
M/S Duncan Agro Industries Ltd. Hon’ble Supreme Court also repeated various interim orders passed in
the said S. L. P. The Ministry vide Letter F. No.C18013/21/89 Cus (As) of 27-10-95 withdrew with
immediate effect instructions to implement the interim order if the Hon’ble Supreme Court.
3.1 QUANTAM OF REWARDS:

Seizures of contrabands under the Customs Act (“Smuggling” Offence)
3.1.1 Informers and Government servants will be eligible for rewards upto 20% of the estimated
market value of the contraband goods seized. In respect of gold, silver, opium and other narcotic
drugs etc. the overall ceilings for rewards (based on broadly 20% of the value of these items, as
www.referencer.in
232
reckoned by the Government for the present) are shown in the Annex. These would be subject to
periodical revision in the light of price fluctuations about which timely intimation should be sent
to D. G. R. I. every quarter to enable him to recommend appropriate revision, as and when
warranted, to the Ministry.
ANNEXURE
(Paras 3.1.1, 3.1.2*** and 3.4.1)
Sr. Commodity Range of illicit Rate of maximum Prescribed purity

No. prices indicated reward @ 20% of
now illicit prices
1. 2. 3(a) 3(b) 4.
Rs. Rs.
1. Gold - Rs. 500 per 10 ** 999.5 Mille or more

Grammes
2. Silver - Rs. 1000/-** per 99% or more

kg.
3. Opium 1,100 220/- per kg. *Not less than 9.5%
n
2,000 morphine as on
r.i
anhydrous morphine.
4. Morphine 40,000 8,000/- per kg.

e 90% or more
Base and its 50,000 anhydrous morphine
salts
nc
5. Heroin and 1,00,000 20,000/- per kg. 90% or more diacetyl
its salts 3,00,000 morphine
re
6. Cocaine and 2,00,000 4,00,00/- per kg. 90% or more of

fe
its salts 6,00,000 anhydrous cocaine

400 per kg.
7. Hashish 2,000 With The content of 4% or
.re
3,500 more
2,000/- per kg.
8. Hashish oil 10,000 With THC content of 20%
w
17,500 of more
Rs. 80/- per kg.
w
9. Ganja 400 Should be commercially

500 acceptable as Ganja.
w
N.B. :- Rewards shall be reduced pro rata if the purity is less than the one prescribed above.
* Substituted by vide Board’s Letter F. No. R 13011/11/86 dt 13-5-86.

** Revised as per Ministry Letter F No. 13011/5/88/ Ad V dt 7-6-1988.
*** Reference to para 3.1.2 in Annexure to the Ministry’s letter of even number dated 30.3.1985 may be
treated as deleted.
____________________________
CLARIFICATIONS
A ) Normally an amount of only Rs. One lakh in all (i. e. advance reward & final reward together) would
be granted as reward to an individual officer in a single case. However, rewards in excess of this limit
would be sanctioned only by the Board on the recommendations of the Reward Committees (as in
existing orders dated 18-2-87 and 20-10-87) in cases of an exceptional nature.
www.referencer.in
233
For the same reason, no Government servant will be paid rewards exceeding Rs. 10 Lakhs in his
entire career. In order to implement this ceiling, all rewards paid to a Govt. servant should be entered in
his service book on a separate page assigned for reward entries.
In cases of reward of less than Rs.10, 000/- the authority competent to sanction reward should be
one stage higher than the Adjudicating authority. For rewards in excess of Rs.10, 000/- the reward
Committee already constituted would be competent as sanctioning authority.
In order to give larger number of officers an opportunity to work on the anti-smuggling and anti-
evasion posts, there should be periodic rotation of officers and no officers should normally be posted to
the airports, Directorate General of Revenue Intelligence, Directorate General (Anti Evasion) and
Headquarters (Preventive) of a Collectorate etc. for more than five years and after each posting there
should normally be a cooling period of two years but the special attitude and flair for anti-smuggling and
anti-evasion work should not be lost sight of in the interest of operational efficiency while enforcing this
principle.
[Ministry’s Letter F. No. R 13011/5/89 Ad V Dt:- 13-4-89]
B ) As for seizures of other dangerous drugs such as heroin, morphine, etc. and psychotropic substances
n
like, mandrax tablets, for want of firm prices, no rate of reward could be fixed. In view of the increasing
r.i
incidence of drug trafficking, transit trafficking with attendant adverse effects, it has been decided that
seizures of all dangerous drugs and psychotropic substances effected on or after 1st January, 1985 *
e
would also qualify for rewards to Government employees at the rates to be indicated separately.
nc
Informers would however be eligible for rewards only in respect of information received on or after 3rd
March. 1985.
re
* should be read as during the period from 1st January to 31st December, 1984”.
fe
[Para 2.5.3 of Ministry’s clarification in letter of even no, dt 5-6-85,]

.re
3.2 Reward for detection of other offences under the Customs Act, such as, evasion of
Customs Duty, under / over – invoicing of import / exports, infringement of import / export
licencing laws, etc. (other than those relating to smuggling matters)
w
3.2.1 Informers and Government Servants will be eligible for reward upto 20% of the duty, if any,
w
sought to be evaded plus 20% of the fine and penalty levied / imposed and realised,
provided the amount does not exceed 20% of the market value of the goods involved.
w
3.3 Seizures made, evasion of duty and other infringements detected under the Central Excise
and Salt Act, 1944.
3.3.1 In cases of detection of evasion of Central Excise duty, concealment or suppression of

production, surreptitious removal of dutiable goods, etc., informers and Government Servants will
be eligible for reward upto 20% of the duty, fine and penalty levied / imposed and realised
provided the amount does not exceed 20% of the market value of the goods involved.
3.4 Seizure under the Gold (Control) Act and cases of other violations detected under the
Gold (Control) Act.
3.4.1 In case of seizure of gold bullion, the overall ceiling for rewards to informers and Govern-
ment Servants will be as indicated in serial No. 1 of the Annex.
3.4.2 In other cases, whether of seizure of articles of gold / ornaments, or of detection of

“shortages” informers and Government, Servants will be eligible for reward upto 20% of the
redemption fine and / or penalty imposed and realised, provided the amount does not exceed 20%
of the market price of the goods involved.
3.5 Cases of seizures / violations detected under FERA-

3.5.1 Informers and Government Servants will be eligible for reward upto 20% of the amount
involved in confiscation. When in addition to confiscation or without confiscation a penalty is
www.referencer.in
234
imposed and realised, 20% of it may also be taken into account in computing the ceiling.
4. REWARD SHOULD NOT BE GRANTED AS A MATTER OF ROUTINE

4.1 Reward is purely an ex-gratia payment which, subject to the guidelines may be granted on
the absolute discretion of the authority competent to grant rewards and cannot be claimed by
anyone as a matter of right. In determining the reward which may be granted, the authority
competent to grant reward will be keep in mind the specificity and accuracy of the nature of the
help rendered by the informer, whether information, the risk and trouble undertaken, the extent
and nature of the help rendered by the informer, whether information gives clues to persons
involved in smuggling, or their associates, etc, the risk involved for the Government Servants in
working out the case, the difficulty in securing the information, the extent to which the vigilance of
the staff led to the seizure, special initiative, efforts and ingenuity displayed, etc. and whether,
besides the seizure of contraband goods, the owners / organizers / financiers/
racketeers as well as the carriers have been apprehended or not.
4.2 To Government Servants, rewards may ordinarily be paid upto 10% of the estimated
n
market value of the goods involved (half of the maximum rewards indicated in respect of gold,
r.i
silver, opium and other narcotic drugs, etc. in the Annex). Rewards in excess of this limit, but not
exceeding 20% (or, as in the Annex. In respect of gold, silver, narcotics, etc.) of the said value,
e
may be considered in cases where the Government servant has exposed himself to a great
nc
personal hazard or displayed exemplary courage, commendable initiative, ingenuity or
resourcefulness of an extraordinary character or his personal efforts have been mainly
re
responsible for the detection of the goods.

fe
STAGE OF PAYMENT OF REWARD

.re
5. Payment of advance rewards

5.1 Advance reward may be paid to informers and Government servants upto 50% of the
w
expected final reward immediately on seizure in respect of the following categories of goods,
w
namely:-
w
a) gold / silver bullion and goods which are notified; or specified under the Customs Act, 1962:
b) arms and ammunition, explosives;
c) opium and other narcotic drugs;
d) goods not declared which are seized in the Customs area or Customs waters; and
e) freely convertible foreign exchange in the form of currency notes.
5.2 In other (“Smuggling”) cases of seizures of contraband goods, advance reward upto 25%
of the expected final reward may be paid immediately after seizure, if the authority competent to
sanction reward is satisfied that the goods seized are reasonably expected to be confiscated on
adjudication and the order is likely to be sustained in appeal / revision proceedings.
5.3 In all other cases, whether of seizure or of evasion / infringement detected on the basis of
documents, 25% of the expected final reward may be paid after the issue of a show cause notice
provided the authority competent to sanction reward is satisfied that there is reasonable chance
of confiscability / infringement / evasion, as the case may be, being established in adjudication
and sustained in appeal / revisionary proceedings.
www.referencer.in
235
_____________________________________________
CLARIFICATIONS
It is clarified that advance reward referred to in paras 5.2 and 5.3 of the letter dated 30-3-1985
may also be paid upto 25% of the expected final reward, subject to the conditions mentioned therein,
immediately after seizure of excisable goods under the Central Excise and Salt Act, 1944 and rules made
there under and that of foreign exchange seized and encashed under and that of foreign exchange Act,
1973, as distinct from cases involving no actual seizure where the offence is based entirely on the basis
of documentary evidence which is governed by para 5.3 that covers FERA cases too.
[Ministry’s letter of even number of 9.9.1985.]
Advance reward to Informers in Central Excise & Customs Appraising cases –
Attention is drawn to Ministry’s instruction contained in letter F. No. 13011/3/85. Ad. V. dated 30th
March,1985, 13011/3/89-Ad. V. dated 13.4.1989 and dated 15.5.89 and to other instruction / orders on
sanction of rewards to Govt. servants and informers issued from time to time.
On 16.11.89 the Hon’ble Supreme Court of India stayed the sanction of rewards to informers and
n
Govt. servants in all type of cases, both in customs & central excise, in the SLP filed by M/s. Duncan Agro
r.i
Industries Ltd. The stay was however later made inapplicable to informers in seizure cases of gold
bullion, silver bullion and in narcotic smuggling cases.
e
On 28.11.94 the Hon’ble Supreme Court of India dismissed as withdrawn the SLP filed by M/s.
nc
Duncan Agro Industries Ltd. The Ministry vide F. No C-18013/2189-Cus (AS) dated 27.10.95 issued
instruction for repeal of the interim orders issued from time to time from Letter F. No. C.18013/21/89-Ad.
re
V dated 16.11.89, 12.01.90, 17.4.90, 23.8.90 and 25.3.92.

In view of the above position the sanction of advance reward to informers in Central Excise
fe
evasion cases and in Customs appraising cases is now possible immediately after the issue of Show
.re
Cause notice, as per the provisions of Para 5.3 of reward instruction 13011/3/85-Ad. V dated 30.3.85,
subject to the condition that the authority competent to sanction the reward is satisfied that the orders are
w
likely to be sustained in appeal revision proceedings.

The sanction of advance reward to Govt. servants will however continue to be governed by
w
existing provisions contained F. No. R.13011/5/89-Ad. V dated 13.4.89.

w
The earlier clarifications R-13011/13/91-Cus (AS) dt.8.5.91 regarding payment of advance

rewards in Central Excise evasion cases and Board Letters F. No. 13011/3/96-Cus (AS) dated 10.7.97
and 10.9.97 may accordingly be treated as withdrawn with immediate effect.
[Ministry’s letter F. No. R – 13011/3/96 – Cus (AS) dt 31-10-96.]

_____________________________________
5.4 In exceptional cases, the Heads of Departments may, having regard to the value of the
seizures effected and magnitude of the evasion or infringement detected and special efforts or
ingenuity displayed by the officers concerned, sanction and announce the grant of suitable
rewards on the spot to be adjusted against the advance reward that may be sanctioned.
6. PAYMENT OF FINAL REWARD
6.1 Final reward will be paid after adjusting the advance reward, if any, paid in the manner as
indicated in succeeding paras.
6.2 In respect of the goods described in Para 5.1, the remaining 50% of the reward may be
sanctioned both to informers and Government Servants on adjudication of the case resulting in
confiscation of the goods. If, however, the party concerned delays adjudication proceedings by
www.referencer.in
236
contesting the imposition of penalty only but not confiscation of the goods, the final reward may
be sanctioned even prior to the conclusion of the adjudication proceedings.
6.3 In all other cases, 25% of the expected final reward may be paid after adjudication
resulting in confiscation and / or confirmation of the demand / infringement and the remaining
50% may be paid only after the conclusion of the appeal / revision proceedings by the appropriate
authorities, (such as, Tribunals, FERA Board, etc.) resulting in the upholding of confiscation,
demand / fines / penalties, etc. imposed under the respective Acts.
_________________________________________
CLARIFICATIONS
Attention is drawn to this Department’s instructions contained in the letter of even number dt.
13.4.89 whereby the existing reward policy dt. 30.3.85 has been modified to some extent.
2. The issue whether final reward should be given only after actual realization of Central Excise
duty, penalty fine even if appeal / revision proceedings have concluded resulting in confiscation and / or
confirmation of demand / infringement has also been under consideration of the Government. Keeping in
view all consideration of the matter, it has been decided that final reward should be paid only after actual
realization of the Central Excise duty / Customs duty, penalty, fine etc. Para 6.3 of reward rules dt.
30.3.85 stands amended accordingly.
n
r.i
[Ministry’s letter F. No. R 13011/5/89 Ad V dt. 15.5.1989]
_____________________________________________
7. TO WHOM REWARD MAY BE PAID

e
nc
7.1 Ordinarily, informers and Government Servants (upto the level of Group ‘A’ Superinten-
dents / Assistant Collector of Customs and Central Excise / Assistant Directors) will be
re
eligible for reward depending on the contribution made by them as a team as well as
individually with regard to the collection of intelligence, surveillance, effecting of seizure
etc. Due credit should be given to the staff employed on investigation and / or prosecution
fe
resulting in conviction of persons involved other than the carriers of contraband goods,
etc.
.re
7.2 Group ‘A’ Officers above the level of Assistant Collector / Assistant Director will not be
eligible for reward on the basis of value of the seizure, etc. However, in appropriate cases,
Government may consider, in consultation with GCA / DGRI / Director, Anti-Evasion, the
w
grant of lump-sum payment / advance increments and / or recognition, in any other

manner of the services rendered by them for which purpose the Heads of Departments
w
should forward their recommendation to the aforementioned officers with a copy to the
Ministry.
w
_____________________________________
CLARIFICATIONS
Grant of rewards to informers & Govt. servants Re-designation of post of Assistant Commissio-
ner of Customs & Central Excise –
Attention is drawn to the Ministry’s Instructions issued vide F. No. 13011/3/85-AD. V DATED
30-3-1985, relating to grant of rewards to informers and Government servants,(amended subsequently
from time to time) and in view of redesignation of post of Assistant Commissioner of Customs & Central
Excise / Assistant Director in Senior Time Scale (STS) as Deputy Commissioner of Customs & Central
Excise / Deputy Director w. e. f. 11-05-1999, as per Office Order No. 118/99 dated 2.6.1999 issued from
F. No. 50/17/99-Ad. II in this regard, any reference to Assistant Commissioner of Customs & Central
Excise / Assistant Director in para 7.1 and 7.2 of the above stated instructions dated 30.3.95, may be
read as Assistant Commissioner of Customs & Central Excise / Assistant Director or Deputy
Commissioner of Customs & Director, as the case may be.
[ Ministry’s letter F. No. R-13011/4/99-Cus (AS) dated 15.7.1999 ]
www.referencer.in
237
Sanction of reward to staff involved in prosecution / sponsoring detention under COFEPOSA /

Processing adjudication files etc.,
The proposal for extension of the scheme for grant of reward to Government servants who make
outstanding contributions in post seizure operating was under the consideration of the Government. While
the present reward rules cover performed relating to collecting of intelligence and making of seizure, post-
seizure operating which some times form a very important segment of preventive work is not always given
its due importance. After careful consideration of the matter, the government has decided that while it
may not be necessary to reward routine performance in respect of post-seizure operations such as
investigation, adjudication, prosecution, detention of persons involved under COFEPOSA, disposal of
goods etc. should also be duly and adequately recognized and rewarded.
2. The staff employed on investigations / adjudication and / or prosecutions will be eligible for
reward if their investigations etc. lead to penalization / conviction of persons who are organizers /
financiers of smuggling activities (other than more carriers of smuggled goods). Similarly, staff deployed
in COFEPOSA Unit have to work in close co-operation with officers deployed for investigation so as to
ensure prompt detention of the organisers of the smuggling racket. Quite often our Departmental Officers
play a very important role in tracing out COFEPOSA absconders and in effecting their detention. If the
n
detention of financiers / organisers of smuggling racket (other than carriers) is sustained for the full term
r.i
by the Advisory Board / Courts / Officers employed in COFEPOSA / work also could be rewarded. Prompt
disposal of the confiscated goods without causing any loss to Government could also merit payment of
e
reward. In all such deserving cases a reward upto a maximum of Rs. 5,000/- per head in each case,
nc
subject to the over all ceiling of 20% of value of the goods involved etc. could be sanctioned by the Head
of the Department. [ Board’s letter F. No. R.3014/23/85-Ad. V dated 14.6.86 ]
re
Payment of reward to staff – regarding

fe
The Financial Adviser has observed that the instructions and guidelines on payment of rewards
.re
are not being scrupulously followed by some of the Collectorates. Monetary rewards are being sanctioned
for activities such as typing work, bringing the seized goods to the Collectorates, ensuring their safe
custody etc. He has also observed that rewards are being paid to the staff where seizures are being
w
effected only on account of X-ray baggage machines and when the staff has not played an important role
w
in the seizure. The views of the Financial Adviser are quite reasonable and it is felt that the Collectors
w
should not grant monetary rewards in a routine manner without ensuring that the guidelines are followed.
Greater cargo should, therefore, be exercised in such cases and rewards should be sanctioned only to
Government servants who are eligible for the same and the amount so sanctioned should be
commensurate with the role played by the Government servants.
[Ministry’s letter NO. R. 13011/21/89 Ad V Dt. 4.10.89]
8. DELEGATION OF POWERS FOR PAYMENT OF REWARD
8.1.1 The Monetary limit of sanction of rewards to informers and Government Servants are :-
Designation of Officer Monetary limit for sanction of rewards to

Informers Govt. Servants
Heads of Department Rs. 20 lakhs Rs. 10,000/-
Additional Collector of Customs / Central Rs. 10,000 Rs. 5,000/-

Excise, Special Director, Enforcement
Deputy Collector of Customs / Central Excise, Rs. 5,000/- Rs. 2,500/-

Enforcement / DRI / Directorate of Anti-Evasion
www.referencer.in
238
8.1.2 Any case for the grant of reward in excess of Rs. twenty lakhs to an informer would be
examined and approved by a Committee consisting of:-
1. The head of the Department;

2. Director, Preventive Operations; and
3. Additional Collector / Deputy Director, Enforcement / Deputy Director, Anti-Evasion /
DRI.
8.1.3 All cases of grant of reward to Government Servants in excess of the limits specified
above should be examined and approved by a Committee consisting of the following:-
Amount of reward for Government Constitution of the Committee
(1) Reward in excess of Rs.10,000/- but not 1) Head of the Department;

exceeding Rs. one lakh 2) Additional Collector; and
3) Seniormost Deputy Collector / Deputy
Director at the Hdqrs.
(2) Reward in excess of Rs. one lakh upto Rs. 1) Head of the Department;
five lakhs. 2) Director, Preventive Operations; and
3) Additional Collector / Special Director
incharge at the Hdqrs.
n
(3) Reward in excess of Rs. five lakhs. 1) Concerned Member of the C. B. E. C. or
r.i
G. C. A., as the case may be, and
2) DGRI / Director, Enforcement / Director,
Anti-Evasion, as the case may be, and
e 3) The Head of Department concerned.
nc
re
“ 8.1.3.* At a situation where a committee has to be constituted in respect of cases detected on

fe
the basis of intelligence worked out entirely by the Directorate of Anti-Evasion Officers, the
committee can consist of the Director of Anti-Evasion (as Head of the Department), the Additional
Collector of the Collectorate is involved one of the Additional Collectors concerned) and the Zonal
.re
Director of Anti-Evasion”.
w
9. It has also been decided to set up three separate Funds namely, the Welfare Fund, the
Performance Award Fund and the Special Fund for the acquisition of equipment, etc., 1% of the
w
estimated market value of the goods involved will be credited to the Welfare Fund, 4% to the
Performance Award Fund and 5% to the Special Fund. Detailed guidelines in this regard will be
w
issued separately.
9.1 In view of the liberalisation of rewards, the Heads of Departments will take special care to
ensure that the value of the goods fixed at the time of seizure is fully realistic and represents the
correct value of the goods. For this purpose, price lists in respect of items frequently seized and
disposed of should be prepared with utmost care with the assistance of the Valuation Committee
and these should be regularly reviewed.
10. At the time an informer furnishes any information or documents, an undertaking should be
taken from him that he is aware that the extent of the reward depends on the precision of the
information furnished by him and that the provisions of Sec. 182 of the Indian Penal Code have
been read by him or explained to him, that he is aware that if the information furnished by him is
found to be false, he would be liable to prosecution, that he accepts that the Government is under
no obligation to enter into any correspondence regarding the details of seizures, if any, made,
etc., and that the payment of reward is ex-gratia in the absolute discretion of the authority
competent to grant reward.
*[Inserted by letter of even number 13014/22/85 Ad. V dt.20.1.1986]
www.referencer.in
239
_________________________
CLARIFICATIONS
Grant of reward to informers and Government servants

The Board have had occasion to review the scheme of liberalization reward rules introduced vide
Ministry’s letter F. No. 13011/3/85-Ad. V dated 30th March, 85. It has been decided that in cases where
the reward proposed to any Officer is between Rs.50, 000/- to Rs. 1 Lakh, such proposal should be
examined by a Committee headed by the Principal Collector having jurisdiction in that region.
[Ministry‘s letter F. No. R.13011/19/88 dated. 24.8.1988.]
Constitution of Reward Committee
In pursuance of the Ministry’s instructions contained in F.No.13011/3/85 Ad. V / 30.3.85 as

amended by letter F. No. 8011/19/88 Ad. V / 24.8.88, and in superssesion of Standing Order S O. 6918
dated 3.10.89; a Committee consisting of officers as follows is constituted for sanction of rewards to
officers.
n
1) For reward amount in excess of Rs.50,000/- but not exceeding Rs.1,00,000/-
r.i
a) Principal Collector – Chairman
b) Collector of Customs – Member
e
nc
c) Addl. Collector (Preventive General) – Member
d) Addl. Collector (Appraising General) – Member
re
2) For reward amount in excess of Rs.10, 000/- but not exceeding Rs. 50, 000/-
a) Collector of Custom – Chairman
fe
b) Addl. Collector (Preventive General) – Member

.re
c) Addl. Collector (Appraising General) – Member
The Committee shall be assisted by Asstt. Collector (Preventive General) and Asstt. Collector
w
(Appraising General), as the case may be. The cases detected by the Preventive units v SIIB, CIU, Dock
w
Intelligence Units, shall be sent to Asstt. Collector (Preventive General) for processing and submitting to
the committee. The cases detected by Appraising Groups, Audit, Docks, M.C.D. etc., shall be sent to
w
Asstt. Collector (Appraising General) for process and submitting to the Committee. The Asstt. Collectors
(Preventive General and Appraising General) may take the assistance of Asstt. Collectors incharge of the
detecting units for presentation of cases before the reward Committee. The Committee may co. opt an
Addl. Collector / Deputy Collector for examination of a proposal, if it deems necessary.
[S. O. issued from File No, s/15-70/90 Apprg. (M) Dated, the 13.8.90, of Mumbai Custom House]
CHECK–LIST
The following documents are necessary while forwarding the file to Reward Cell for reward purpose.
1. Report of Seizing Officer on noting side.

2. Panchanama of seizure of goods
3. DRI-I proforma
4. DRI-II proforma
5. Assay report in case of gold / silver
6. Test report in case of Drugs / Narcotics
www.referencer.in
240
7. Disposal Certificate.
8. Order-in-original.
9. Appeal verification report, if any.
10. CEGAT order if any.
11. Contemporaneous report.
12. Annexure –II: Advance / Final reward proposal form the informer.
13. Annexure -III: Final / Advance reward proposal form for Staff.
14. Names of all the staff who participated in seizure and post seizure formalities to be
mentioned in the contemporaneous report.
15. Contemporaneous report should be supported by documents.
16. Available Reward amount calculation sheet.
ANNEXURE – II
PROPOSAL FOR FINAL REWARD TO THE INFORMANT
F. No.
n
1. Date and place of seizure :
r.i
2. Description of goods. :
e
3.Quantity (in case of Gold
nc
Silver / Narcotics) :
re
4. Panchanama Value :
5.Estimated Value :
fe
6.Sale proceeds actually realised :

.re
7. 10% of the estimated value / sale proceeds

in case of seizure made prior to 1.1.85
w
8. 20% of the estimated value / sale proceeds

w
in case of seizure made after 1.1.85

w
9. Amount available at the rate per tola / kg.

(in respect of gold / silver / narcotics)
10. Amount already paid as advance reward

to the informant as per column No. 7 or 8
(attach copy of order)
11. Amount available for payment :

of final reward to the informant as
per column No. 7 or 8
12. Result of adjudication proceedings :

13. Whether appeal or revision :

application has been filed
& if so, results thereof.
14. Result of prosecution proceedings. :
15. Recommendation for final reward, if :

any, by Additional Commissioner
www.referencer.in
241
ANNEXURE III
PROPOSAL FOR ADVANCE / FINAL REWARDS TO STAFF
F. No.
1. Date and place of seizure :
2. Description of goods :
3. Quantity (in case of gold / silver / narcotics) :
4. Panchanama Value :
5. Estimated Value :
6. Sale proceeds actually realised :
7. 10% of the Estimated value / sale proceeds :

in case of seizure made before 1.1.85.
8. 20% of the estimated value / ale proceeds :

in case of seizure made after 1.1.85.
n
r.i
9. Amount available at the rate per tola / kg. :
(in respect of gold / silver / narcotics) e
10. Advance reward already sanctioned in any :
nc
11. Amount available as advance / Final :

re
reward to the staff as per column no. 7 or 8.
12. Result of adjudication proceedings :

fe

.re
13. Whether appeal or revision application has :

been filed & if so, result thereof
w
14. Results of prosecution proceedings. :

w
w
ANNEXURE ‘A’
Reward payment Certificate
Certified that an amount of Rs. _______________( Rupees _____________ only) sanctioned as

Advance / Final Reward by the Committee headed by the Chief Commissioner, Commissioner / Addl.
Commissioner of Customs vide order no.________________ dated ___________ in the case of seizure
of __________________________ on ________________; drawn in Contingency Bill No. ________
Dated_____________for Rs. __________________encashed from the Customs Treasury on ________
Was paid to the right informant from whom a receipt has been obtained by me in the presence of a
witness.
Place Commissioner / Addl. Commissioner / Asstt. Commissioner of Customs

Date :
www.referencer.in
242
ANNEXURE ‘B’
RECEIPT OF REWARD
Received a sum of Rs._________________( Rupees __________________only) as Advance /

Final Reward from the Commissioner / Addl. Commissioner / Asstt. of Customs ( Commissionerate &
address ) , in the case of seizure of ___________________on ___________vide Custom House File No.
_______________________
Thumb impression / Signature of the informant with date of payment.
Certified that the payment has been made by me to the right informant whose thumb impression /
signature appears on the above receipt, this day the _______________
Signature of the Commissioner / Addl. Commissioner / Asstt. Commissioner

Identifying Officer of Customs, ( Commissionerate )
Name & Designation
n
r.i
Signature of Witness Officer
Name & Designation

e
nc
PROCEDURE FOR SANCTION AND DISBURSEMENT OF REWARDS TO GOVT. SERVANTS
A Govt. servant is entitled to receive a maximum reward amount of Rs.10 lakhs (Ten lakhs only)
re
In his / he entire service career in terms of Govt. of India, Ministry of Finance, Deptt, of Revenue O. M.
fe
No. R 13011/5/89-Ad.V dated 13.4.89. In order to implement these instructions, a procedure was issued
vide this office OM No. Paylt. / reward / Misc. / 94-95/730 dated 21.11.94. In view of the difficulties
.re
expressed in following the procedure prescribed vide OM dated 21.11-94, the same has been reviewed
and a revised procedure, as follows, is prescribed with the approval of Central Board of Excise and
w
Customs, New Delhi communicated vide Member CBEC d. o. F. No. 394/46/95-CUS (AS) dt.6.5.98.
w
(1) Issue of Sanction:

After approval of the reward by the competent authority, the commissionerate / Directorates shall
w
issue either a consolidated sanction for three categories of employees i.e. employees working in the
same Commissionerate / Directorate and employees working in the other Commissionerate / Directorate
and employees working in other govt. offices, or separate sanction for each category, It shall, however,
be ensured that the sanctions are issued well before the close of the financial year.
(2) Disbursement of Rewards:

For disbursement of rewards, the Drawing and Disbursing Officer of the Commissionerate /
Directorate issuing the sanction shall draw separate bills for the three categories of employee i.e.
employees posted in the same Commissionerate / Directorate employees working in other
Commissionerate / Directorate and the employees working in other Govt. offices as under:-
(a) For employees posted within the same commissionerate / Directorate

The DDO shall submit the bill to the Pay and Accounts Office with a certificate recorded on the bill
that “Entries of reward drawn in the bill have been made in the Service Books of the concerned
employees and the amount of reward being drawn does not exceed the limit of Rs.10 lakhs (Ten lakhs
www.referencer.in
243
only) in each case”. The PAO shall pass the bill of payment, subject to availability of funds, only if the
prescribed certificate is recorded on the bill.
(b) For employees posted in other Commissionerate / Directorate -

The DDO (Originating –‘DDO) shall submit the bill to the PAO without any certificate as prescribed in
sub-para (a) above. The PAO shall pass the bill subject to availability of funds and draw cheques in
favour of each of the rewardee. The cheques so drawn shall be handed over to the Originating DDO with
a forwarding letter (Annexure –I), for onward transmission to the DDO (Payee – DDO) under whose
control the individual rewardee is working, subject to the condition that the Payee –DDO shall make
entries in the Service Books of the rewardees and ensure that the amount of reward does not exceed the
limit of Rs.10 lacks (Ten lacks only) in each case and that he shall issue a certificate (as per Annexure –
IV) to this effect in duplicate to the Originating –DDO. The originating – DDO alongwith a forwarding letter
(Annexure II) under intimating to the PAO who issued the cheque (s). The PAO shall also keep record of
all such payments in his Objection Book and monitor receipt of a certificate from the Payee-DDO to the
effect that the limit of Rs.10 lakhs (Ten lakhs only) did not exceed in each case. In case the Payee-DDO
finds that the limit of RS.10 lakhs (Ten lakhs only) is being exceeded in case of any rewardee, he shall
n
return the cheque of that rewardee to the Originating – DDO with appropriate remarks for cancellation.
r.i
The Payee- DDO shall be responsible to make entries in the Service Book of the employees
concerned and ensure that the total amount of reward being paid to an employee does not exceed Rs.10
e
lakhs (Ten lakhs only) in his / her entire service career. The Payee – DDO shall deliver the cheques to the
nc
concerned employees only after making requisite entries in the Service Books. The payee- DDO shall
also issue a certificate (Annexure-IV) to this effect and send the same to the Originating – DDO alongwith
re
a forwarding letter as per Annexure III.

fe
(c) For employees posted in other Govt. Departments:-

The procedure as prescribed in sub-para (b) above shall apply mutatis mutandis.
.re
The issues in supersession of earlier procedure prescribed vide this office OM No. Paylt / Rewards /
Misc. / 94-95 /730 dt.21.11.94 and shall take effect from 1.10.98 i.e. sanction issued on or after 1.10.98
w
shall be dealt with as per the above revised procedure.

w
[F. NO. Co ord / 14(7) Reward / 97/ 546 dt.10.9.98. from Dy. Controller of Accounts, New Delhi]
w
Annexure - I
Specimen of form for forwarding cheques by PAO to originating (DDO)
To,
The (originating DDO)
......................
. . . . . . . . . . . .. . .. . . . . . . .
Sub: Payment against reward bill No. . . . . . . . . . . . dt.. . . . . . . . . . for Rs. . . . . . . . . . . . . . . . . . .
Sir,
With reference to the above mentioned bill, please find enclosed the following cheques:-
S. No. Cheque No. & date Amount Name & designation of the official
1.
2.
3.
4.
5.
www.referencer.in
244
2. The above cheques are in respect of officials who are working in other Commissionerates / Dtes
and, therefore, entries of reward drawn have not been made in their service book. The amount of reward
has been kept in the objection Book pending receipt of certificate that the entries of reward payment have
been made in their Service Books. These cheques may please be sent to the concerned DDO s
immediately (under intimation to this office) by Regd insures cover with the following instructions:-
A: Before handing over cheques to the officials entries of reward payment should be made in the
Service Books of each official and it should be ensured that the amount of reward including the
amount of reward including the amount already received in the past does not exceed the limit of
Rs.10 lakhs in entire Service.
B: In case it is found that the limit of Rs.10 lacks is exceeded in case of any official the relevant cheque
should be returned to you for cancellation.
C: After handling over the cheques to the officials, a certificate in duplicate (as per Annexure (IV)
should be sent to you.
3. It will be your personal responsibility to watch receipt of certificate (as mentioned at para 2(c) above)
from, the concerned DDO(s). On receipt of certificate, one copy of certificate should be kept in your safe
custody and the other copy should be sent by you to this office for clearing the items kept in the objection
n
Book. Cheque(s), if any, returned to you by the Payee DDO on account of reward limit of Rs.10 lakhs
r.i
having been exceeded, shall also be sent to this office for cancellation.
e Yours faithfully
nc
Pay and Accounts Officer
re
Annexure - IV
fe
CERTIFICATE
.re
(To be sent in duplicate to the originating DDO)
Certified that the entries or of reward payment have been made in the Service Books of the following
w
officials. It is further certified that the amount of the reward now paid including the amount already
received by them in the past does not exceed the limit of Rs.10 lakhs (Ten lakhs) in their entire Service.
w
w
S. No. Cheque No. & date Name & designation Amount of reward payment
t of the official
1.
2.
3.
4.
The undermentioned cheque(s) is / are returned for cancellation as the amount of reward including
the amount already received in the past, exceeds the limit of Rs.10 lakhs in the entire Service.
S. No. Cheque No. & date Amount Name of the official
1.
2.
3.
4.
Payee Drawing and Disbursing Officer
www.referencer.in
245
Annexure – III
(Specimen of form for to be used by Payee DDO for furnishing certificate of reward payment entries in
this Service – Book / and or returning the cheques to the originating DDO.)
To,
The (Originating DDO)
..................
...................
Sub: Payment of Rewards.
Sir,
When reference to your office letter No. . . . . . . . . . . . . . . . . . dt. . . . . . . . . . . . . I am confirming

that the following cheques have been delivered to the official(s) on proper acquaintance after making
entries of reward payment in the Service books of the each officials under my attestation.
S. No. Cheque No. & date Amount Name & designation of the official
n
1.
2.
r.i
3.
4. e
nc
2. The undermentioned cheques are returned herewith as the amount of reward including the amount
already received in the past exceeds the limit of Rs.10 lakhs in the entire Service.
re
S. No. Cheque No. & date Amount Name & description of the official
fe
1.
.re
2.
3.
4.
w
w
3. A certificate to the effect that entries of reward payment have been made in the Service Books of
w
each official and that the amount of reward payment including the amount already received in the past
does not exceed the limit of Rs.10 lakhs in the entire Service, is enclosed.
Yours faithfully
Payee Drawing and Disbursing Officer
Copy for information to : Pay and Accounts Officer, Central Excise & Customs. (i.e. the PAO who issued
cheques)
Drawing and Disbursing Officer
www.referencer.in
246
Annexure – II
(Specimen of form for forwarding cheques by the Originating DDO to the Payee DDO(s))
To,
The Payee (DDO)

...............
...............
Sub: Payment of Rewards.
Sir,
Please find enclosed the following cheques in payment of rewards, the undermentioned officials who
are working in your payment control.
Sr. No. Cheque No. & date Amount Name and Sanction no. & date
designation of the
official
n
e r.i
nc
2. As the Service books of the above named officials are in your custody, entries of reward drawl have
not been made in their Service-books. You should, therefore, comply with the following requirements
re
before delivering the cheques to the official(s):-

fe
A: Entries of reward payment should be made in the Service books of each officials and it should
be ensured that the amount of reward including the amount already received in the past does
.re
not exceed the limit of Rs.10 lakhs in the entire service.

w
B: In case it is found that the limit of Rs.10 lakhs is exceeded in case of any official the relevant
cheque should be returned to the undersigned for cancellation.
w
3. After delivery of the cheques on proper acquaintance to the official(s) a certificate in duplicate in
w
the enclosed form should be sent to the undersigned.
Please acknowledge receipt.

Yours faithfully
Copy for information to : Pay and Accounts Officer . . . . . . . . . . . . . . . . . . . . . . . with reference to his letter
no. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . dt . . . . . . . . . . . . .
@@@@@@@@@@@@
www.referencer.in

Customs Preventive Manual Vol-II

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Customs Preventive Manual Vol-II

Uploaded by

Copyright:

Available Formats

CUSTOMS PREVENTIVE MANUAL (CENTRAL) VOLUME II (INTELLIGENECE)

PREVENTIVE MANUAL (CENTRAL )

CHAPTERS SUBJECT PAGE NO.

Light Blue Alerts 18

Basis of issue of Alert Notices 19

Receipt of Alerts and maintenance of Visadex System 21

Operation of Visadex system 24

CHAPTER 2 GUARDS, PATROLS & SURVEILLANCE 25 - 29

CHAPTER 3 DRI SERIES OF FORMS 30 - 44

REVISION OF DRI SERIES OF FORMS 30

CHAPTER 4 C. E. I. B. DATA BANK 45 - 54

Offences by Officers of Customs 63

RUMMAGE / SEARCH OF VESSELS 65

‘Reasonable belief’ – meaning of 68

CHAPTER 8 ADJUDICATION 89 - 109

Granting of copies of depositions in cross examinations & Re-examinations 95

Issue of formal Order-in-Original in every case where note-sheet order is passed 98

Enhancement of Adjudication powers of Joint Commissioners of Customs 100

Provisional release of seized vehicles pending adjudication 102

Re-shipment / re-export of Import Cargo 103

Enhancement of personal penalty in re-adjudication under Section 122 104

CHAPTER 9 SETTLEMENT COMMISSION 110 - 121

CHAPTER 10 APPEALS & REVISIONS 122 - 151

CONDONATION OF DELAY IN FILLING APPEALS 148

CHAPTER 11 ARREST & PROSECUTION 152 - 166

ARREST & PROCECUTION FOR CUSTOMS OFFENCES 155

Annexure – I - Investigation Report for launching Prosecution 160

Grant of Exit Permission to Foreigners Arrested & Prosecuted 161

CHAPTER 12 NARCOTIC DRUGS & PSYCHOTROPIC SUBSTANCES 167 - 229

Licit cultivation of opium 174

Revised guidelines 230

Detection of other offences under the Customs Act, 1962 233

Seizures made, etc., under Gold (Control) Act 233

Payment of Advance Reward 234

TO WHOM REWARD MAY BE PAID 236

1. The cultivation of informers

SET-UP AND FUNCTIONS OF INTELLIGENCE UNITS IN THE CUSTOM HOUSE

4. Docks Intelligence Unit.

their modus operandi.

Houses, Commissionerates, D.R.I. etc.

(a) Collection of Intelligence regarding suspect vessels and their crew.

4. Dock Intelligence Unit

5. Air Intelligence Unit

(b) Keeping custody of seized documents / passports etc.

8. Prosecution and Legal Action Unit

(f) Attend the court on COFEPOSA matters.

10. Adjudication Unit

11. Disposal Unit

(a) Receipt & custody of seized & confiscated goods.

It is important that every investigator/officer, regardless of experience, consider everyone he/she

Investigators should avoid using derogatory terminology when referring to an informant.

Before discussing uses of informants, it is important to recognize several problem areas

If one accepts informants, regardless of classification, as being a legitimate and necessary

1. Make observations or perform surveillance in areas where strangers would be suspect.

exposed or openly testifying in court.

quality of information alleged.

step forward to developing quality informants.

relationships with other law enforcement officers.

Everyone arrested should be approached as a potential informant. Some investigators,

potential informant if cooperation is to be gained.

interviewing an informant or potential informant.

3. Has the informant been reliable in the past.

4. How intelligent is the informant.

5. How does he/she know about the violation.