Friday, December 28, 2018


Section 2 defines various important aspects of customs Act,1962. Let us discuss important definitions which will give a insight view to understand the same in later stage of this BLOG topics in detail. Along with definitions let us also see some comments for better understanding.

Adjudicating Authority  Sec 2 (1)

It means “any authority competent to pass any order or decision under customs Act, 1962.But does not include the Board, Commissioner (Appeals) or Appellate Tribunal”.
’out of charge’ order passed by the proper officer must be presumed to be after DUE ADJUDICATION Whether the import of the goods is prohibited by the customs Act 1962 u/s 11 or not or any other law for the time being in force u/s 2(33), the proper officer was an “Adjudicating Authority” within the meaning of sec 2(1) of CA 1962- Industrial cables India Ltd V Union of India 1986(25) ECT33: 1986(2) ECR 157.

Appellate  Tribunal Sec 2 (1B)

a. It means the customs, Excise and service Tax Appellate Tribunal Constituted u/s 129 of CA 1962 shortly ‘CESTAT’.
b. Earlier it was called CEGAT (Customs,Excise Gold (control) Appellate Tribunal.

Assessment Sec 2(2)

Assessment includes;
a. Provisional assessment
b. Self assessment
c. Re-assessment
d. Nil assessment.

Baggage sec 2(3)

a. It includes unaccompanied baggage but does not include motor vehicles.
b. U/s 2 (22) “goods” includes both baggage as well as motor vehicles. Hence motor vehicles are excluded from the definition of baggage.

Bill of Entry sec 2(4)

It means a bill of entry referred to in sec 46.

Bill of Export sec 2(5)

It means a bill of export referred to in sec 50.

Coastal goods sec 2(7)

It means goods, other than imported goods, transported in a vessel from one part of India to another.

Conveyance  Sec 2(9)

It includes a vessel, an aircraft and a vehicle. A vessel satisfies the definition of “goods” but not where the use is for conveyance. When the purpose of entry of the vessel within the territorial waters is to unload cargo, then the cargo is imported and not the vessel. Jalyan Udyog V UOI 1987(32) ELT 697.

Customs Area  Sec 2(11)

It means “the area of a customs station and includes any area in which imported goods or export goods are ordinarily kept before clearance by customs Authorities.

Dutiable goods  Sec 2(14)

It means “Any goods which are chargeable to duty and on which duty has not been paid”.

Dutiable goods must fulfill both the conditions as are mentioned under sec 2(14)
a. Chargeable to duty
b. Goods on which the duty has not been paid.
Ambalal V Asst. Collector of customs AIR 1971 Cal.444

Examination Sec 2(17)

It means “In relation to any goods, includes measurement and weighment thereof”.

Export Sec 2(18)

With its grammatical variations and cognate ( related or connected )expressions, means taking out of India to a place outside India.
a.The assessee cannot claim drawback of duty as goods u/s 75 which are not exported within the meaning of sec 2(18).
Lucas T.V.S Padi V Asst. Collector of customs 1980 ELT 465(MAD)
b.Deemed Exports is an exception to above definitions for availing export benefits.

Import – Sec 2(23)

With its grammatical variations and cognate expressions, import means bringing into India from a place outside India.

Market price Sec  2(30)

In relations to any goods, it means the wholesale price of the goods in the ordinary course of trade in India.

Prohibited Goods Sec 2(33)

It means “ Any goods the import or export of which is subject to any prohibition under this Act or any other law for the time being in force but does not include  any such goods in respect of which the conditions subject  to which the goods are permitted to be imported or exported have been complied with.

The purpose and power to prohibit import or export of goods are defined u/s 11.

Proper officer Sec 2(34)

“In relation to any functions to be performed under this Act, It means the officer of customs who is assigned those functions by the Board or the commissioner of customs.
a. The word “Proper officer” referred in various provisions of custom Act.
b. It means the officer to whom those functions assigned by the Board or commissioner of customs as defined u/s 2(34)
c. But it does not include police officers or any other officers enumerated u/s 151
d. The police officers have no independent role to play in exercise of powers under customs Act.Directorate of Enforcement V Deepak Mahajan 1995 (58) ECR 632 (SC)

Regulations  Sec 2 (35)

It means “ the regulations made by the Board under any provisions of this Act”.

General Power to make regulations are provided u/s 157

Rules  Sec 2(36)

It means “The rules made by the central Government under any provisions of this Act.

General power to make rules are provided u/s 156

Shipping bill Sec 2 (37) means a shipping bill referred to in sec 50.

Stores sec 2(38) means goods for use in a vessel or aircraft, includes fuel, spare parts & other articles of equipment, whether or not for immediate fitting.

Smuggling Sec 2(39)

In relation to any goods, it means any act or omission which will render such goods liable to confiscation of improperly imported and attempted to be improperly exported goods respectively.

Various clauses u/s 111 make the improperly imported goods liable to  confiscation Amount to smuggling within the meaning u/s 2 (39) – 1990 cri LJ 481.

Goods removed without following procedure amount to smuggling – Jain Shudh Vanaspati V.C.R Patnakar 1988(33) ELT 77: 1988 (14) ECR 101.

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