Penalty for attempt to export goods improperly, etc
Section 114 of the Customs Act, 1962 deals with penalty for attempt to export goods improperly, etc. Any person who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall be liable,-- (i) in the case of goods in respect of which any prohibition is in force und The Act came into force on 01 Feb 1963.
Any person who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall be liable,--
(i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty 1[not exceeding three times the value of the goods as declared by the exporter or the value as determined under this Act], whichever is the greater;
2[(ii) in the case of dutiable goods, other than prohibited goods, subject to the provisions of section 114A, to a penalty not exceeding ten per cent. of the duty sought to be evaded or five thousand rupees, whichever is higher:
Provided that where such duty as determined under sub-section (8) of section 28 and the interest payable thereon under section 28AA is paid within thirty days from the date of communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent. of the penalty so determined;]
3[(iii) in the case of any other goods, to a penalty not exceeding the value of the goods, as declared by the exporter or the value as determined under this Act, whichever is the greater.]
Section 114, The Customs Act, 1962 (Act 52 of 1962).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
Siddachalam Exports Private LTD vs Commissioner of Central Excise Delhi-iii
Court's Decision & Legal Precedent
The procedure prescribed under Section 14(1) of the Customs Act, 1962 and Rule 4 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 must be strictly adhered to for determining the value of goods entered for exportation, irrespective of whether any duty is leviable. Once the transaction value is challenged, the Revenue must bear the burden of proving mis-valuation by sequentially proceeding through Rules 5 to 8, with market enquiry permissible only as a last resort after exhausting alternative methods. Deviation from this mandatory statutory procedure vitiates the proceedings and warrants remand for fresh adjudication in accordance with law.
On this section: Lower authorities imposed penalty on both the company and its director; Supreme Court did not address merits of penalty while remitting case for fresh consideration
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… (f) Since M/s. G & S International is a proprietorship firm under proprietorship of Mr. Sita Ram Agarwal, the Adjudicating Authority imposed a penalty of Rs. 30 Lakhs only on Mr. Sita Ram Agarwal under section 114 of the Customs Act, 1962. (g) Since M/s. A's Raj International is a proprietorship firm under proprietorship of Mr. Rajesh Agarwal, the Adjudicating Authority imposed a penalty of Rs. 50 Lakhs only on Mr. Rajesh Agarwal under section 114 of the Customs Act, 1962. (h) Since M/s. Sherya Overseas is a …
-
… (f) Since M/s. G & S International is a proprietorship firm under proprietorship of Mr. Sita Ram Agarwal, the Adjudicating Authority imposed a penalty of Rs. 30 Lakhs only on Mr. Sita Ram Agarwal under section 114 of the Customs Act, 1962. (g) Since M/s. A's Raj International is a proprietorship firm under proprietorship of Mr. Rajesh Agarwal, the Adjudicating Authority imposed a penalty of Rs. 50 Lakhs only on Mr. Rajesh Agarwal under section 114 of the Customs Act, 1962. (h) Since M/s. Sherya Overseas is a …
-
… redemption fine of Rs. 2,60,000/- under Section 125 of the Customs Act with the stipulation that the offer of redemption was valid only for a period of three months from the date of issue of order. In addition, a penalty of Rs. 2,60,000/- was also imposed on the petitioner under Section 114 of the Customs Act. 5. Petitioner though her Power of Attorney addressed a letter dated 02.06.2023 to the Commissioner of Customs for permitting redemption of USD 18,900/- after deducting the penalty/fine. On the failure of the respondent, petitioner preferred the present Writ Petition. 6. …
Questions about Section 114
What have the courts held on Section 114 of the Customs Act?
Siddachalam Exports Private LTD vs Commissioner of Central Excise Delhi-iii (01 Apr 2011) is the leading judgment on this section among those set out below: Lower authorities imposed penalty on both the company and its director; Supreme Court did not address merits of penalty while remitting case for fresh consideration.
How do I find court cases under Section 114 of the Customs Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Customs Act 1962 114, section 114 Customs Act 1962, section 114 of the Customs Act. People searching for it also type customs act 114a and customs act 1962 section 114. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Siddachalam Exports Private LTD vs Commissioner of Central Excise Delhi-iii (01 Apr 2011).
What should I read with Section 114 of the Customs Act, and has it changed?
Its own text turns on section 28 (Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded), section 28AA (Interest on delayed payment of duty), section 113 (Confiscation of goods attempted to be improperly exported, etc), section 114A (Penalty for short-levy or non-levy of duty in certain cases), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.
When did Section 114 of the Customs Act come into force?
Section 114 of the Customs Act, cited as Customs Act 1962 114, came into force on 01 Feb 1963, having been enacted on 13 Dec 1962. It is in force as at the date shown on this page.
Other sections of this Act
- 28. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded2145 words
- 2. Definitions1638 words
- 129A. Appeals to the Appellate Tribunal1170 words
- 27. Claim for refund of duty1060 words
- 127C. Procedure on receipt of an application under section 127B1056 words
- 138C. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence872 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.