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Section142A
The Customs Act, 1962

Liability under Act to be first charge

In force From 01 Feb 1963 Act 52 of 1962 As on 18 Oct 2026

Act 52 of 1962 Ministry Finance Enacted 13 Dec 1962 In force 01 Feb 1963

Section 142A of the Customs Act, 1962 deals with liability under Act to be first charge. Notwithstanding anything to the contrary contained in any Central Act or State Act, any amount of duty, penalty, interest or any other sum payable by an assessee or any other person under this Act, shall, save as otherwise provided in section 529A of the Companies Act, 1956 (1 of 1956), the Recovery The Act came into force on 01 Feb 1963.

1[142A. Liability under Act to be first charge.--Notwithstanding anything to the contrary contained in any Central Act or State Act, any amount of duty, penalty, interest or any other sum payable by an assessee or any other person under this Act, shall, save as otherwise provided in section 529A of the Companies Act, 1956 (1 of 1956), the Recovery of Debts Due to Banks and the Financial Institutions Act, 1993 (51 of 1993) and 2[the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002 (54 of 2002) and the Insolvency and Bankruptcy Code, 2016 (31 of 2016).]]

Section 142A, 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.

  1. Sundaresh Bhatt vs Central Board of Indirect Taxes and Customs

    Supreme Court of India 26 Aug 2022 Binding (Supreme Court) Reportable 2022 SCC OnLine SC 1501

    Court's Decision & Legal Precedent

    Once moratorium is imposed under Sections 14 or 33(5) of the Insolvency and Bankruptcy Code, 2016, the Customs authority has only limited jurisdiction to assess and determine the quantum of customs duty and other levies. The Customs authority does not have the power to initiate recovery of dues by means of sale or confiscation as provided under the Customs Act. After such assessment, the Customs authority must submit its claims in accordance with the procedure laid down in the IBC and in strict compliance with prescribed time periods before the adjudicating authority. The Insolvency and Bankruptcy Code overrides the Customs Act to this extent, and the Liquidator can immediately secure goods from the Customs authority to be dealt with appropriately under the IBC. Additionally, the Liquidator has discretion in choosing the mode of sale of corporate assets (auction or private contract), and no vested right accrues to any bidder merely by participation in a bidding process; the Liquidator's commercial decisions regarding asset sales are not subject to judicial review.

    On this section: Provides that Customs dues are first charge on property except as provided in IBC; Court held this exception means IBC takes priority during insolvency

    Read the full order on eCourts India

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.

  1. Supreme Court of India 26 Aug 2022 SCIN010309702021

    … The respondent cannot blow hot and cold at the same time by again claiming before this Court that the Corporate Debtor has lost ownership of the said goods. - iv. The respondent could not have exercised its right under the Customs Act, as the statutory charge of the respondent under Section 142A of the Customs Act is expressly subordinate to the IBC. - v. The respondent's custody of the Corporate Debtor's goods is in violation of Sections 14 and 33 of the IBC. Section 14(1)(a) of the IBC expressly prohibits the institution or continuation of proceedings against the Corporate Debtor during the moratorium …

    Read this order on eCourtsIndia

Questions about Section 142A

What have the courts held on Section 142A of the Customs Act?

Sundaresh Bhatt vs Central Board of Indirect Taxes and Customs (26 Aug 2022) is the leading judgment on this section among those set out below: Provides that Customs dues are first charge on property except as provided in IBC; Court held this exception means IBC takes priority during insolvency.

How do I find court cases under Section 142A 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 142A, section 142A Customs Act 1962, section 142A 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 Sundaresh Bhatt vs Central Board of Indirect Taxes and Customs (26 Aug 2022).

When did Section 142A of the Customs Act come into force?

Section 142A of the Customs Act, cited as Customs Act 1962 142A, 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

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 18 Oct 2026. This page is not a substitute for legal advice.