Goods improperly removed from warehouse, etc
Section 72 of the Customs Act, 1962 deals with goods improperly removed from warehouse, etc. In any of the following cases, that is to say,-- (a) where any warehoused goods are removed from a warehouse in contravention of section 71; The Act came into force on 01 Feb 1963.
(1) In any of the following cases, that is to say,--
(a) where any warehoused goods are removed from a warehouse in contravention of section 71;
(b) where any warehoused goods have not been removed from a warehouse at the expiration of the period during which such goods are permitted under section 61 to remain in a warehouse;
1* * * * *
(d) where any goods in respect of which a bond has been executed under 2[section 59 3*** ] and which have not been cleared for home consumption or 4[export or] are not duly accounted for to the satisfaction of the proper officer,
the proper officer may demand, and the owner of such goods shall forthwith pay, the full amount of duty chargeable on account of such goods together with 5[interest, fine and penalties] payable in respect of such goods
(2) If any owner fails to pay any amount demanded under sub-section (1), the proper officer may, without prejudice to any other remedy, cause to be detained and sold, after notice to the owner (any transfer of the goods notwithstanding) such sufficient portion of his goods, if any, in the warehouse, as the said officer may 6[deem fit].
Section 72, 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.
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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Sbec Sugar Limited vs Union of India
Court's Decision & Legal Precedent
The benefit of duty exemption granted under EPCG Scheme notification is available only in respect of those goods which are cleared under Section 68 of the Customs Act (i.e., within the initially permitted warehouse period or during permitted extended period). Goods not removed from warehouse within the permitted period are deemed improperly removed under Section 72(1)(b) and the importer must pay customs duty at the rate applicable on the date of expiry of the permitted period. Section 15(1)(b), which prescribes duty computation at the rate applicable on date goods are actually removed from warehouse, applies only to clearance under Section 68 and not to goods deemed improperly removed under Section 72. Consequently, when goods are deemed improperly removed under Section 72, interest accrues from the date of expiry of the permitted period till actual clearance, irrespective of subsequent grant of duty exemption notification. Any other interpretation would render Section 72 otiose and create unintended amnesty benefits contrary to principles of harmonious statutory construction.
On this section: Provides that goods not removed from warehouse at expiration of permitted period are deemed improperly removed and proper officer may demand full amount of duty chargeable together with penalties, rent, interest and other charges. Rate computed on date of deemed removal (date of expiry of permitted period)
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Sundaresh Bhatt vs Central Board of Indirect Taxes and Customs
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 for demand of duty and sale of goods when goods not removed within prescribed period; Court held this cannot be exercised during moratorium without adjudication of abandonment
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.
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 72
What have the courts held on Section 72 of the Customs Act?
Sbec Sugar Limited vs Union of India (07 Feb 2011) is the leading judgment on this section among those set out below: Provides that goods not removed from warehouse at expiration of permitted period are deemed improperly removed and proper officer may demand full amount of duty chargeable together with penalties, rent, interest and other charges. Rate computed on date of deemed removal (date of expiry of permitted period). Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2011 to 2022.
How do I find court cases under Section 72 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 72, section 72 Customs Act 1962, section 72 of the Customs Act. People searching for it also type customs tariff act chapter 72 to 81. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Sbec Sugar Limited vs Union of India (07 Feb 2011).
What should I read with Section 72 of the Customs Act, and has it changed?
Its own text turns on section 59 (Warehousing bond), section 61 (Period for which goods may remain warehoused), section 71 (Goods not to be taken out of warehouse except as provided by this Act), so none of them can safely be read on its own. One instrument names it without being made under it, most recently Warehoused Goods (Removal) Regulations, 2016. Notification No. 67/2016- Customs (N.T.) dated 14th May, 2016 (2016).
When did Section 72 of the Customs Act come into force?
Section 72 of the Customs Act, cited as Customs Act 1962 72, 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.