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Date: 17.10.2025
CBIC Notifies Amendments to Entrustment of Powers under Section 110
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.com or on his Mobile +91-9999005379.
On October 1, 2025, the Ministry of Finance (Department of Revenue) issued Notification No. 63/2025-Customs (N.T. β), introducing amendments to the earlier notification [No. β 26/2022-Customs (N.T.) β]. This notification, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), brings significant changes to the Customs Act, 1962, particularly concerning Section 110 and its sub-sections. In this blog, we will delve into the details of the notification, explore the relevant sections of the Customs Act, and discuss case law related to Section 110.
Key Highlights of Notification No. 63/2025-Customs (N.T.) β
The notification amends the principal notification [No. β 26/2022-Customs (N.T.) β], which was originally published on March 31, 2022, and subsequently amended multiple times. β The latest amendments are as follows:
- Amendments to Serial Number 6:
- In column (3), item (vi) and its entries have been substituted with: “(vi) Sub-sections (1), (3), and (5) of Section 110”. β
- Amendments to Serial Number 7:
- In column (3), item (xiv) and its entries have been substituted with: “(xiv) Sub-sections (1), (3), and (5) of Section 110”. β
These changes clarify the applicability of specific sub-sections of Section 110 of the Customs Act, 1962, which deals with the seizure of goods, documents, and things. β
Comparative Table: Notification No. 26/2022-Customs (N.T.) β vs Notification No. 63/2025-Customs (N.T.) β
| Aspect | Notification No. 26/2022-Customs (N.T.) β | Notification No. 63/2025-Customs (N.T.) β |
| Date of Notification β | March 31, 2022 β | October 1, 2025 β |
| Purpose | Original notification issued to define the powers and functions of customs officers under the Customs Act. | Amends specific provisions of Notification No. β 26/2022-Customs (N.T.) β to update the applicability of Section 110. |
| Amendments to Serial No. β 6 | Item (vi) referred to certain sub-sections of Section 110. β | Item (vi) updated to include Sub-sections (1), (3), and (5) of Section 110. β |
| Amendments to Serial No. β 7 | Item (xiv) referred to certain sub-sections of Section 110. β | Item (xiv) updated to include Sub-sections (1), (3), and (5) of Section 110. β |
| Focus Area | General provisions related to customs officers and their powers. | Specific focus on the seizure provisions under Section 110 and the role of proper officers. β |
| Referenced Sections | Sections 3, 4, 5, and 110 of the Customs Act, 1962. | Sections 3, 4, 5, and updated sub-sections of Section 110 of the Customs Act, 1962. |
| Effective Date | March 31, 2022 β | October 1, 2025 β |
| Subsequent Amendments | Amended via notifications S.O. β 1601(E) (April 4, 2022), S.O. β 3186(E) (July 14, 2022), and S.O. β 5773(E) (December 10, 2022). β | Latest amendment introduced through Notification No. 63/2025-Customs (N.T. β). |
Circular No. β 07/2022-Customs
The Circular No. β 07/2022-Customs, issued by the Ministry of Finance, Government of India, on March 31, 2022, outlines amendments to the Customs Act, 1962, introduced through the Finance Act, 2022. β Key changes include modifications to Section 2(34) for assigning functions to customs officers, inclusion of officers from DRI, Audit, and Preventive formations under Section 3, and the insertion of new sub-sections (1A), (1B), (4), and (5) under Section 5 to clarify the assignment of functions and jurisdiction. A new Section 110AA has been added to ensure that the original officer retains jurisdiction for further actions after inquiries or audits.
Understanding Section 110 of the Customs Act, 1962 β
Section 110 of the Customs Act, 1962, outlines the provisions related to the seizure of goods, documents, and other items by customs authorities. The relevant sub-sections are as follows:
- Sub-section (1): Empowers a proper officer to seize goods, documents, or things if there is a reasonable belief that they are liable for confiscation under the Customs Act.
- Sub-section (3): Specifies the procedure for issuing a notice to the owner of the seized goods, requiring them to show cause why the goods should not be confiscated.
- Sub-section (5): Provides the conditions under which seized goods may be released provisionally to the owner, subject to furnishing a bond or security.
These provisions ensure that customs authorities can take necessary action against goods suspected of violating customs laws while safeguarding the rights of the owners.
Sub-section (34) of Section 2 of the Customs Act, 1962 β
Sub-section (34) of Section 2 defines the term “proper officer”. It states: “Proper officer”, in relation to any functions to be performed under this Act, means the officer of customs who is assigned those functions by the Board or the Commissioner of Customs.”
This definition is crucial as it determines the authority of customs officers to act under various provisions of the Customs Act, including Section 110.
Overview of Sections 3, 4, and 5 of the Customs Act, 1962
- Section 3: Officers of Customs This section specifies the classes of officers of customs, including Chief Commissioners, Commissioners, Joint Commissioners, Deputy Commissioners, Assistant Commissioners, and other officers. It establishes the hierarchy and roles within the customs department.
- Section 4: Appointment of Officers of Customs Under this section, the Central Government is empowered to appoint officers of customs. It also allows the government to authorize certain officers to exercise the powers and discharge the duties of customs officers.
- Section 5: Powers of Officers of Customs β Section 5 outlines the powers of customs officers, which include exercising authority under the Customs Act. β Sub-sections (1A), (4), and (5) of this section were referenced in the recent notification, emphasizing the delegation of powers to proper officers for specific functions. β
Case Law Related to Section 110: Proper Officer and Seizure of Goods
In M/s. Nikom Copper and Conductors Pvt. β Ltd. vs. Union of India and Others, the petitioner challenged the seizure of imported copper goods by the Directorate of Revenue Intelligence (DRI), alleging the seizure was illegal and lacked “reason to believe” as required under Section 110 of the Customs Act. β Bombay High Court ruled in favor of the petitioner, quashing the seizure memo and declaring the cancellation of amendments to the bills of entry invalid due to procedural violations. The Court ordered the release of the goods to the petitioner upon payment of duties and completion of formalities. β
Conclusion
The recent amendments introduced by Notification No. β 63/2025-Customs (N.T.) β aim to streamline the application of Section 110 of the Customs Act, 1962, by specifying the relevant sub-sections. β These changes reinforce the role of proper officers in ensuring compliance with customs laws while safeguarding the rights of individuals. Additionally, the provisions under Sections 3, 4, and 5 of the Customs Act provide a robust framework for the appointment and empowerment of customs officers.β
Source: CBIC, Ministry of Finance, Govt. of India
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