Cognizance of offences
Section 137 of the Customs Act, 1962 deals with cognizance of offences. No court shall take cognizance of any offence under section 132, section 133, section 134 or [section 135 or section 135A], [or section 135AA] ] except with the previous sanction of the [Principal Commissioner of Custom or Commissioner of Customs]. The Act came into force on 01 Feb 1963.
(1) No court shall take cognizance of any offence under section 132, section 133, section 134 or 1[section 135 or section 135A], 2[or section 135AA] ] except with the previous sanction of the 3[Principal Commissioner of Custom or Commissioner of Customs].
(2) No court shall take cognizance of any offence under section 136,--
(a) where the offence is alleged to have been committed by an officer of customs not lower in rank than 4[Assistant Commissioner of Customs or Deputy Commissioner of Customs], except with the previous sanction of the Central Government;
(b) where the offence is alleged to have been committed by an officer of customs lower in rank than 4[Assistant Commissioner of Customs or Deputy Commissioner of Customs] except with the previous sanction of the 3[Principal Commissioner of Customs or Commissioner of Customs].
5[(3) Any offence under this Chapter may, either before or after the institution of prosecution, be compounded by the 6[Principal Chief Commissioner of Customs or Chief Commissioner of Customs] on payment, by the person accused of the offence to the Central Government, of 7[such compounding amount and in such manner of compounding] as may be specified by rules.]
8[Provided that nothing contained in this sub-section shall apply to--
(a) a person who has been allowed to compound once in respect of any offence under sections 135 and 135A;
(b) a person who has been accused of committing an offence under this Act which is also an offence under any of the following Acts, namely:--
(i) the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985);
(ii) the Chemical Weapons Convention Act, 2000 (34 of 2000);
(iii) the Arms Act, 1959 (54 of 1959);
(iv) the Wild Life (Protection) Act, 1972 (53 of 1972);
(c) a person involved in smuggling of goods falling under any of the following, namely:--
(i) goods specified in the list of Special Chemicals, Organisms, Materials, Equipment and Technology in Appendix 3 to Schedule 2 (Export Policy) of ITC (HS) Classification of Export and Import Items of the Foreign Trade Policy, as amended from time to time, issued under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);
(ii) goods which are specified as prohibited items for import and export in the ITC (HS) Classification of Export and Import Items of the Foreign Trade Policy, as amended from time to time, issued under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);
(iii) any other goods or documents, which are likely to affect friendly relations with a foreign State or are derogatory to national honour;
(d) a person who has been allowed to compound once in respect of any offence under this Chapter for goods of value exceeding rupees one crore;
(e) a person who has been convicted under this Act on or after the 30th day of December, 2005.]
Section 137, 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
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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Vinodkumar Agarwal v. Union of India & Ors.
Court's Decision & Legal Precedent
DB Oral Judgment: Chief Commissioner compounding power under Customs s.137(3) is confined to Chapter XVI Customs offences; CBEC circular paras restricting compounding (incl. where IPC also alleged) partly ultra vires s.137(3)/Rules and beyond s.151A instructions power; compounding rejection remitted. DATE-matched Final Order/Oral Judgment 25.10.2007.
On this section: s.137 — Cognizance/sanction/compounding of Customs offences; compounding discretion under s.137(3)
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 the fact that a police officer making an investigation of an offence representing the State files a report under Section 173 of the Code and becomes the complainant whereas the prosecuting agency under the special Acts files a complaint as a complainant i.e. under Section 61(ii) in the case of FERA and under Section 137 of the Customs Act. To say differently, the police officer after consummation of the investigation files a report under Section 173 of the Code upon which the Magistrate may take cognizance of any offence disclosed in the report under Section 190(1)(b) of the Code whereas the empowered or authorised officer of the …
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… of the fact that a police officer making an investigation of an offence representing the State files a report under Section 173 of the Code and becomes the complainant whereas the prosecuting agency under the special Acts files a complaint as a complainant i.e. under Section 61(ii) in the case of FERA and under Section 137 of the Customs Act. To say differently, the police officer after consummation of the investigation files a report under Section 173 of the Code upon which the Magistrate may take cognizance of any offence disclosed in the report under Section 190(1)(b) of the Code whereas the empowered or authorised officer of the …
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… of the fact that a police officer making an investigation of an offence representing the State files a report under Section 173 of the Code and becomes the complainant whereas the prosecuting agency under the special Acts files a complaint as a complainant i.e. under Section 61(ii) in the case of FERA and under Section 137 of the Customs Act. To say differently, the police officer after consummation of the investigation files a report under Section 173 of the Code upon which the Magistrate may take cognizance of any offence disclosed in the report under Section 190(1)(b) of the Code whereas the empowered or authorised officer of the …
Made under this section, and citing it
3 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 1 instrument names this provision in its title or its text without being made under it.
Questions about Section 137
What have the courts held on Section 137 of the Customs Act?
Vinodkumar Agarwal v. Union of India & Ors. (25 Oct 2007) is the leading judgment on this section among those set out below: s.137 — Cognizance/sanction/compounding of Customs offences; compounding discretion under s.137(3).
How do I find court cases under Section 137 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 137, section 137 Customs Act 1962, section 137 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 Vinodkumar Agarwal v. Union of India & Ors. (25 Oct 2007).
What should I read with Section 137 of the Customs Act, and has it changed?
Its own text turns on section 132 (False declaration, false documents, etc), section 133 (Obstruction of officer of customs), section 134 (Refusal to be X-rayed), section 135 (Evasion of duty or prohibitions), and on 3 further provisions, so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 3: most recently Notification No.118/2008-Cus(NT), dated 12.11.2008 (2008), then Customs (Compounding of offences) Rules, 2005 (2005), and 1 more.
When did Section 137 of the Customs Act come into force?
Section 137 of the Customs Act, cited as Customs Act 1962 137, 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 15 Oct 2026. This page is not a substitute for legal advice.