Indirect Taxes

PROSECUTION

Section 135 of the Customs Act provides that if any person:

  1. Is in relation to any goods in any way knowingly concerned in mis-declaration of value or any fraudulent evasion or attempt at evasion of any duty or of any prohibition for the time being imposed under any law for the time being in force or
  2. acquires possession of or is in any 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 or
  3. attempts to export any goods which he knows or has reason to believe are liable to confiscation or
  4. fraudulently avails of or attempts to avail of drawback or any exemption from duty provided under Customs Act in connection with export of goods,
  5. obtains any instrument from any authority by fraud, collusion, wilful mis-statement or suppression of facts, where such instrument has been utilized by any person and if duty relatable to utilization of the instrument exceeds ₹ 50,00,000/- (This clause is proposed to be inserted by Finance Bill, 2019),

he shall be punishable as under:

Offence

Punishment for first offence

Punishment for second and every subsequent offence

In case of offence relating to-

  1. goods whose market price exceeds ₹ 1 crore; or
  2. the evasion or attempted evasion of duty exceeding ₹ 50 lakhs; or
  3. such categories of prohibited goods as notified by the Central Government; or
  4. fraudulently availing of or attempting to avail of drawback or any exemption for duty in relation to export of amount exceeding ₹ 50 lakhs

Imprisonment extending to 7 years and fine

Imprisonment extending to
7 years and fine

In any other case

Imprisonment extending to 3 years or with fine or with both