Confiscation of sale-proceeds of smuggled goods
Section 121 of the Customs Act, 1962 deals with confiscation of sale-proceeds of smuggled goods. Where any smuggled goods are sold by a person having knowledge or reason to believe that the goods are smuggled goods, the sale-proceeds thereof shall be liable to confiscation. The Act came into force on 01 Feb 1963.
Where any smuggled goods are sold by a person having knowledge or reason to believe that the goods are smuggled goods, the sale-proceeds thereof shall be liable to confiscation.
Section 121, The Customs Act, 1962 (Act 52 of 1962).
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.
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Union of India vs A. M. Overseas
Court's Decision & Legal Precedent
When seized funds are withdrawn from a bank account before an interim stay order is granted by the appellate court, the appeal becomes infructuous in relation to those funds. However, the seizure orders can be lifted prospectively to permit future operation of the account, and the authorities may proceed with fresh legal action based on completed investigation.
On this section: General powers of customs authorities to prevent removal of goods
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.
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… of Customs, Preventive, Commissionerate, ordered for confiscation of the seized goods worth Rs. 92,73,350/- and also gave an option to redeem the same after paying a redemption fine of Rs. 7 lakhs. The Adjudicating Authority also ordered for the confiscation of Indian Currency amounting to Rs. 14,10,990- under Section 121 of the Customs Act, 1962 and imposed a penalty of Rs. 2 lakhs upon the petitioner under Section 112 of the Customs Act, 1962. 8. Vide letter dated 03.12.2009, petitioner requested the department to encash the bank …
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… Joyalukkas (I) Pvt Ltd., being the sales proceeds of 10 kgs. of smuggled gold purchased from Shri. Sanjay Subrao Nikam, should not be confiscated under the provisions of Section 111(b), (j), ( k) and (o) read with Section 121 of the Customs Act, 1962. viii. the 4 kgs. of gold bars lying at the Air Cargo Complex Nedumbassery being imported into a non-existing unit and with the intention of diverting into the Domestic Tariff Area should not be confiscated under the provisions of Section 111(d) and (o), of the Customs Act, 1962. ix. …
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… Joyalukkas (I) Pvt Ltd., being the sales proceeds of 10 kgs. of smuggled gold purchased from Shri. Sanjay Subrao Nikam, should not be confiscated under the provisions of Section 111(b), (j), ( k) and (o) read with Section 121 of the Customs Act, 1962. viii. the 4 kgs. of gold bars lying at the Air Cargo Complex Nedumbassery being imported into a non-existing unit and with the intention of diverting into the Domestic Tariff Area should not be confiscated under the provisions of Section 111(d) and (o), of the Customs Act, 1962. ix. …
Questions about Section 121
What have the courts held on Section 121 of the Customs Act?
Union of India vs A. M. Overseas (18 Jul 2006) is the leading judgment on this section among those set out below: General powers of customs authorities to prevent removal of goods.
How do I find court cases under Section 121 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 121, section 121 Customs Act 1962, section 121 of the Customs Act. 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 Union of India vs A. M. Overseas (18 Jul 2006).
When did Section 121 of the Customs Act come into force?
Section 121 of the Customs Act, cited as Customs Act 1962 121, 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 17 Oct 2026. This page is not a substitute for legal advice.