Section 115 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 115 says when a conveyance, meaning a vessel, aircraft, vehicle or animal used for transport, is itself liable to confiscation. Sub-section (1) lists five specific situations. Sub-section (2) covers any conveyance or animal used in smuggling, with a defence for an owner who had no knowledge, and a proviso that lets the owner of a hire carrier pay a fine. This article follows the text on the CBIC portal updated to 30 March 2022.
A conveyance is liable to confiscation if it was built or fitted to conceal goods, if goods were thrown overboard or destroyed to prevent seizure, if it fails to stop or land when required under section 106, if goods cleared for export are unloaded from it without the proper officer's permission, or if it carries imported goods that go missing in whole or in substantial part without the master accounting for them. A conveyance or animal used in smuggling is also liable, unless the owner proves it was used without knowledge or connivance. An owner of a conveyance used for hire may pay a fine in lieu.
The text consulted is the CBIC copy last updated on 30 March 2022 (the Act as amended up to the Finance Act, 2022). Later Finance Acts are not in that copy; check any later change to section 115 before acting.
Why a separate section for conveyances
The confiscation of goods is covered in section 111, discussed in our article on confiscation of goods under section 111. Section 115 deals with the vehicle that moves them. It matters to shipping lines, airlines, transporters, fleet owners and anyone who lets a vehicle for hire in a customs area, because the conveyance itself, a high-value asset, can be proceeded against. If a notice proposing confiscation of a vessel or truck has been received, our legal dispute resolution team can help you plan the reply.
Sub-section (1): five situations
| Clause | Conveyance liable to confiscation when |
|---|---|
| (a) | A vessel within the Indian customs waters, an aircraft in India, or a vehicle in a customs area, while constructed, adapted, altered or fitted in any manner for the purpose of concealing goods |
| (b) | The whole or any part of the goods is thrown overboard, staved or destroyed so as to prevent seizure by an officer of customs |
| (c) | Having been required to stop or land under section 106, it fails to do so, except for good and sufficient cause |
| (d) | Warehoused goods cleared for exportation, or other goods cleared for exportation under a claim for drawback, are unloaded from it without the permission of the proper officer |
| (e) | It carries imported goods, has entered India, and is afterwards found with the whole or a substantial portion of the goods missing, unless the master of the vessel or aircraft is able to account for the loss or deficiency |
Points to read carefully:
- In clause (a) the words are "is or has been" within the waters, in India or in a customs area. The test is the purpose of concealment, shown by construction, adaptation, alteration or fitting.
- Clause (b) covers a conveyance from which goods are thrown overboard, staved (the text's word) or destroyed. The aim, "to prevent seizure by an officer of customs", is part of the clause.
- In clause (c) the exception is "good and sufficient cause" for failing to stop or land. The clause refers to section 106 by number; read that section in the Act for the requirement to stop or land.
- Clause (d) names both warehoused goods cleared for exportation and goods cleared for exportation under a claim for drawback. For the scheme see our article on duty drawback under sections 74 and 75.
- In clause (e) the loss must be of the whole or a substantial portion, and the person who can escape is the master of the vessel or aircraft who accounts for the loss. The clause names "master of the vessel or aircraft" only; it does not say who accounts for a vehicle.
Sub-section (2): conveyance or animal used in smuggling
Sub-section (2) is wider in one respect and narrower in another. It reaches any conveyance or animal used as a means of transport in the smuggling of any goods, or in the carriage of smuggled goods. It is narrower in that the owner can defeat it by proving that the use was without the knowledge or connivance of three persons:
- the owner himself;
- his agent, if any; and
- the person in charge of the conveyance or animal.
The text consulted prints "[***]" after "animal"; the footnote says certain words were omitted by the Finance Act, 1988 (26 of 1988), with effect from 13.05.1988. The burden of proof sits with the owner: the words are "unless the owner of the conveyance or animal proves".
Example with invented names: Gaurav Roadways lets its trucks on hire. A truck is found carrying smuggled goods. If Gaurav Roadways proves that neither the owner, nor its agent, nor the driver knew or connived in the carriage, the conveyance is not liable under sub-section (2). If it cannot prove that, the truck is liable to confiscation.
The proviso: fine for hire carriers
The proviso applies "where any such conveyance is used for the carriage of goods or passengers for hire". The owner "shall be given an option to pay in lieu of the confiscation of the conveyance a fine not exceeding the market price of the goods which are sought to be smuggled or the smuggled goods, as the case may be."
Two points follow from the words. First, the word "shall" makes the option mandatory for conveyances used for hire. Second, the ceiling is the market price of the goods, not of the conveyance.
The Explanation says that, in this section, "market price" means the market price at the date when the goods are seized. For the general option to pay fine in lieu of confiscation of goods, and for how that section refers back to this proviso, see our article on sections 125 to 127.
What follows after confiscation is liable
Section 115 states the liability. Procedure comes from other sections. Chapter XIV requires adjudication under section 122 and notice under section 124 before an order confiscating anything is made. Our articles on adjudication and burden of proof and the show cause notice explain those steps. Section 126 says that when goods are confiscated under the Act they vest in the Central Government; it speaks of "goods", and this article does not say how it applies to a conveyance.
Practical points for operators
- Keep a record of who is in charge of each conveyance and who gave instructions, since the knowledge test in sub-section (2) names three people.
- If a conveyance is directed to stop or land, record the reason for any failure to do so; the exception in clause (c) is for good and sufficient cause.
- For export cargo, do not unload cleared goods at an unplanned place without the proper officer's permission; clause (d) is about that.
- For a hire vehicle, ask in writing whether the proviso option has been given.
Need help with a conveyance seized or proposed for confiscation?
A notice of this kind often involves the owner, the agent and the person in charge at once, and the knowledge test in sub-section (2) turns on facts about each of them. Our team can help review the notice and your records and prepare a reply; talk to us about legal dispute resolution for customs matters before the reply date. For the penalty provisions in the same Chapter see Penalties under the Customs Act, sections 112 to 117.
Key takeaways
- Section 115(1) lists five cases in which a conveyance is liable to confiscation.
- Section 115(2) reaches a conveyance or animal used in smuggling unless the owner proves absence of knowledge or connivance by the owner, the agent and the person in charge.
- Owners of conveyances used for hire must be given the option to pay a fine not exceeding the market price of the goods.
- "Market price" is the price at the date the goods are seized.
Read next
- Sections 116 and 117: penalty for not accounting for goods and the residual penalty
- Sections 118 to 121: confiscation of packages, concealing goods and sale proceeds
- Sections 114AB and 114AC: instrument obtained by fraud and fraudulent refund claims
- Penalties under the Customs Act, sections 112 to 117
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.