Issue of show cause notice before confiscation of goods, etc
Section 124 of the Customs Act, 1962 deals with issue of show cause notice before confiscation of goods, etc. No order confiscating any goods or imposing any penalty on any person shall be made under this Chapter unless the owner of the goods or such person-- (a) is given a notice in [writing with the prior approval of the officer of Customs not below the rank of [an Assistant Commissioner of Customs], info The Act came into force on 01 Feb 1963.
No order confiscating any goods or imposing any penalty on any person shall be made under this Chapter unless the owner of the goods or such person--
(a) is given a notice in 1[writing with the prior approval of the officer of Customs not below the rank of 2[an Assistant Commissioner of Customs], informing] him of the grounds on which it is proposed to confiscate the goods or to impose a penalty;
(b) is given an opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the grounds of confiscation or imposition of penalty mentioned therein; and
(c) is given a reasonable opportunity of being heard in the matter:
Provided that the notice referred to in clause (a) and the representation referred to in clause (b) may, at the request of the person concerned be oral.
3[Provided further that notwithstanding issue of notice under this section, the proper officer may issue a supplementary notice under such circumstances and in such manner as may be prescribed.]
Section 124, 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.
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.
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Kothari Filaments vs Commr. of Customs (port) Kolkata
Court's Decision & Legal Precedent
When a statutory authority exercise quasi-judicial functions and pass orders resulting in confiscation of property, imposition of fines, or other civil consequences, they must comply with principles of natural justice including supply or inspection of investigative documents on which they intend to rely. An importer charged with mis-declaration is entitled to know the grounds for penalty and to have a proper hearing which includes access to investigative materials so that he may furnish an effective reply. The statutory authorities cannot use investigative findings as basis for penalty without disclosure or inspection of such documents by the affected party.
On this section: Show cause notice procedure. Court examined adequacy of notice when investigative findings were not disclosed.
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Chandna Impex P. LTD vs Commr. of Customs
Court's Decision & Legal Precedent
A question regarding the jurisdiction of the authority issuing a show cause notice under the Customs Act (specifically whether the Directorate of Revenue Intelligence Additional Director General is a proper officer under Section 28) constitutes a substantial question of law that must be examined on appeal by the High Court with reasoned orders. The High Court cannot dismiss statutory appeals by non-speaking orders that merely endorse lower court reasoning without independent application of mind. Where such a jurisdictional question is raised but not properly examined by the High Court, it is appropriate for the Supreme Court to remand the matter to the Tribunal for fresh adjudication rather than remit to the High Court first, particularly when new precedent (Sayed Ali) has emerged that was not available during the original Tribunal hearing, to avoid prolongation of litigation.
On this section: Authority To Issue Show Cause Notice By Proper Officer
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Mohammad Zaid Salim v. Commissioner of Customs (Airport & General)
Court's Decision & Legal Precedent
Where goods seized under Customs s.110(1) and no s.124(a) SCN within six months (extendable once), s.110(2) mandates return; detention without SCN and disposal without notice is illegal — compensation directed after gold already melted. DATE VERIFIED Final Order 2023-09-04 (order-1.pdf).
On this section: s.124(a) SCN before confiscation — mandatory precondition; absence triggers s.110(2) return/compensation
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.
Questions about Section 124
What have the courts held on Section 124 of the Customs Act?
Kothari Filaments vs Commr. of Customs (port) Kolkata (16 Dec 2008) is the leading judgment on this section among those set out below: Show cause notice procedure. Court examined adequacy of notice when investigative findings were not disclosed. Another 2 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2008 to 2023.
How do I find court cases under Section 124 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 124, section 124 Customs Act 1962, section 124 of the Customs Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Kothari Filaments vs Commr. of Customs (port) Kolkata (16 Dec 2008).
What should I read with Section 124 of the Customs Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 124 of the Customs Act come into force?
Section 124 of the Customs Act, cited as Customs Act 1962 124, 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.