ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 18.12.2025
Revised Guidelines for Arrest and Bail under Customs Act, 1962
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.comor on his Mobile +91-9999005379.โโ
The Central Board of Indirect Taxes & Customs (CBIC) has issued Circular No. โ 13/2022-Customs dated 16th August 2022, revising the guidelines for arrest and bail in relation to offences punishable under the Customs Act, 1962. โ This circular streamlines the threshold limits for arrest and bail, aligning them with the revised limits for launching prosecution as per Circular No. โ 12/2022-Customs.
Key Highlights of the Revised Guidelines:
The revised guidelines emphasize that arrests under the Customs Act, 1962 should only be made in exceptional situations. โ The updated provisions under Para 2.3 of the guidelines are as follows:
- Unauthorised Importation in Baggage/Transfer of Residence Rules: Arrests can be made if the market value of goods involved is Rs. โ 50,00,000 or more. โ
- Outright Smuggling of High-Value Goods: This includes precious metals, restricted/prohibited items, goods notified under Section 123 of the Customs Act, 1962, or foreign currency, where the value of offending goods is Rs. โ 50,00,000 or more. โ
- Importation of Trade Goods with Wilful Mis-declaration: Arrests can be made in cases involving mis-declaration, concealment, or import of restricted/prohibited items where the market value of goods is Rs. โ 2,00,00,000 or more. โ
- Fraudulent Evasion of Duty: Arrests are permissible if the evasion or attempted evasion of duty involves Rs. โ 2,00,00,000 or more. โ
- Fraudulent Availment of Drawback or Duty Exemption: In cases of fraudulent claims for duty drawback or exemptions related to exports, arrests can be made if the amount exceeds Rs. โ 2,00,00,000.
- Exportation of Trade Goods with Mis-declaration or Concealment: Arrests are allowed for mis-declaration in value/description or concealment of restricted goods where the market value exceeds Rs. โ 2,00,00,000.
- Fraudulent Utilisation of Instruments: If an instrument obtained through fraud, collusion, or suppression of facts is used, and the duty involved exceeds Rs. โ 2,00,00,000, arrests can be made. โ
- Special Cases: For offences involving items such as Fake Indian Currency Notes (FICN), arms, ammunition, explosives, antiques, art treasures, wildlife items, and endangered species, arrests may be considered irrespective of the value of the goods involved.
Section 104 of the Customs Act, 1962:
Section 104 of the Customs Act, 1962, empowers Customs officers to arrest individuals if they have reasons to believe that the person has committed an offence punishable under the Act. The section outlines the procedure for arrest, including informing the person of the grounds for arrest and producing them before a magistrate within 24 hours.
Relevant Case Citation:
- Appellants vs Commissioner of Customs – CESTAT Kolkata (Customs 76113 of 2025)
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, overturned the confiscation of 259.99 kg of silver granules and a Hyundai i-20 car, ruling that the Revenue failed to provide sufficient evidence to prove the goods were smuggled. โ The appellants were arrested under Section 104 of the Customs Act, 1962, but the tribunal found that the silver granules were not a notified item under Section 123 of the Customs Act, and the burden of proof rested on the Revenue. The appellants provided valid GST invoices and returns, substantiating their claim of domestic procurement. โ The tribunal also dismissed all penalties imposed on the appellants and allowed the appeals with full relief. โ
Key Points:
- Arrest Under Section 104: The appellants were arrested for alleged smuggling of silver granules under Section 104 of the Customs Act, 1962.
- Confiscation Overturned: The tribunal ruled that the silver granules and vehicle were not liable for confiscation due to lack of evidence proving smuggling. โ
- Burden of Proof: The Revenue failed to establish the foreign origin and smuggled nature of the goods, as silver granules are not a notified item under Section 123 of the Customs Act. โ
- Documentary Evidence: Appellants provided valid GST invoices and returns, supporting their claim of domestic procurement. โ
- Penalties Dismissed: Penalties imposed under Sections 112(a), 112(b), and 114AA of the Customs Act were set aside.
- Cross-Examination Denied: Statements relied upon by the Revenue were deemed invalid as cross-examination under Section 138B of the Customs Act was not allowed. โ
Conclusion:
The revised guidelines under Circular No. โ 13/2022-Customs aim to ensure that arrests under the Customs Act, 1962 are made judiciously and only in exceptional circumstances. By setting clear threshold limits and emphasizing the importance of proportionality, the CBIC seeks to uphold the principles of justice while addressing serious offences under the Act. โ Stakeholders are encouraged to familiarize themselves with these guidelines to ensure compliance and avoid legal complications.
Listen to this on our #YouTube Channel
Source: CBIC, CESTAT Kolkata
Handy Download:
Write to us at office@aadrikaalaw.com
Tel: +91-11-4999 2707 I +91-9999005379
Leave a Reply