Sections 122 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.
Sections 122, 122A and 123 answer three practical questions in a customs case: who decides confiscation and penalty, how the hearing is run, and who must prove what when goods are seized as smuggled. This article follows the text on the CBIC portal updated to 30 March 2022.
Under section 122, confiscation or penalty in a Chapter XIV case may be adjudged without limit by a Principal Commissioner of Customs, a Commissioner of Customs or a Joint Commissioner of Customs, and up to a limit by officers the Board specifies by notification. Section 122A requires a hearing if the party so desires and allows adjournments for reasons recorded in writing, not more than three times to a party. Section 123 puts the burden of proof on the person from whose possession goods were seized, or on the claimant, for gold and manufactures of gold, watches and other notified classes.
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 these sections before acting.
Section 122: who adjudges
The section applies "in every case under this Chapter in which anything is liable to confiscation or any person is liable to a penalty". Such confiscation or penalty "may be adjudged":
| Clause | Officer | Limit |
|---|---|---|
| (a) | Principal Commissioner of Customs or Commissioner of Customs, or a Joint Commissioner of Customs | Without limit |
| (b) | Such officers as the Board may, by notification, specify | Up to such limit as the Board specifies |
The text consulted prints clause (b) as a substituted clause: the footnote records that it was substituted by section 93 of the Finance Act, 2018 (13 of 2018), with effect from 29-3-2018. The footnote then reproduces the earlier wording of the clauses with rupee limits. That old wording is not law and is not explained here. The Board's limits are set by notification and are not stated in this article; check the notification in force for the officer and the limit that apply to your case.
Why this matters: the officer named in the show cause notice and the value of the goods or penalty should fit the officer's authority. A person served with a notice can check who has issued it and under what limit, and raise any point about authority in the reply.
For matters in Chapter XIV, the Chapter covers confiscation and penalty provisions such as section 111, which is explained in our article on confiscation of goods under section 111, and the penalty provisions in our overview of sections 112 to 117. If you have received a notice and want help reading the officer's authority and the grounds, our legal dispute resolution team can assist.
Section 122A: the hearing and adjournments
Section 122A was inserted by the Finance (No. 2) Act, 2004 (23 of 2004), with effect from 10.09.2004, as the footnote prints. It has two sub-sections.
Sub-section (1). The adjudicating authority "shall, in any proceeding under this Chapter or any other provision of this Act, give an opportunity of being heard to a party in a proceeding, if the party so desires." Two points: the right applies to proceedings under this Chapter "or any other provision of this Act", and it is conditional on the party's wish.
Sub-section (2). The authority "may, if sufficient cause is shown at any stage of proceeding referred to in sub-section (1), grant time, from time to time, to the parties or any of them and adjourn the hearing for reasons to be recorded in writing". The proviso limits this: "no such adjournment shall be granted more than three times to a party during the proceeding."
Practical reading:
- Ask for a hearing in writing if you want one; the section says "if the party so desires".
- Show sufficient cause when seeking time; the authority must record reasons in writing.
- Plan around the limit: a party can be granted adjournment at most three times in the proceeding.
An example with invented names: Kalpana Imports Pvt Ltd receives a notice and asks for a hearing. Its consultant asks for time on three occasions, each with reasons recorded. A fourth request cannot be granted under the proviso, so the company should keep the documents and its representative ready before the third adjournment ends.
Section 123: burden of proof
Section 123(1) applies where goods to which the section applies "are seized under this Act in the reasonable belief that they are smuggled goods". The burden of proving that they are not smuggled falls as follows:
| Case | On whom the burden lies |
|---|---|
| (a) Seizure made from the possession of a person | (i) The person from whose possession the goods were seized; and (ii) if any other person claims to be the owner, also on that other person |
| (b) Any other case | The person, if any, who claims to be the owner of the goods so seized |
Sub-section (1) is printed in the form substituted by the Customs, Gold (Control) and Central Excises and Salt (Amendment) Act, 1973 (36 of 1973), with effect from 01.09.1973, according to the footnote.
Which goods. Sub-section (2) says the section applies to "gold, and manufactures thereof", watches, "and any other class of goods which the Central Government may by notification in the Official Gazette specify". The footnote records that the words "and manufactures thereof" replaced earlier words by the Customs (Amendment) Act, 1989 (40 of 1989), with effect from 26.10.1989. Whether any other class has been notified is not shown in the text consulted, so this article names none.
Note the two conditions that go together. The goods must be of the kinds named in sub-section (2), and the seizure must be "in the reasonable belief that they are smuggled goods". Where both are present, the person named in sub-section (1) must prove the goods are not smuggled. For the seizure power itself, see our article on section 110 and the six-month notice rule.
How the three sections work together
A seizure is followed by a notice under section 124, then adjudication by the officer who has authority under section 122, with a hearing under section 122A. Where the goods fall within section 123, the person in the position described there carries the burden of proving the goods are not smuggled. Our article on section 124 and the show cause notice explains the notice stage, and our article on redemption fine and vesting explains what may follow an order of confiscation.
Practical points
- Check who issued the notice and whether the limit fits the officer, since section 122 ties authority to a limit fixed by notification.
- Ask for a personal hearing in writing, and record each request for time with the reasons.
- For gold, manufactures of gold or watches, assemble proof of lawful source before any seizure, since section 123 places the burden on the person from whom the goods are seized.
- Keep supply records, invoices and payment records in one file for the hearing.
Need help with an adjudication or a seizure of gold or watches?
The officer's authority, the number of adjournments and the burden of proof can all shape the outcome of a customs case. Our team can help you review the notice and prepare for the hearing through legal dispute resolution for customs matters, and plan your documents before the first date.
Key takeaways
- Section 122: officers named in clause (a) adjudge without limit; clause (b) officers adjudge up to the limit the Board notifies.
- Section 122A: a hearing is given if the party so desires; adjournment needs sufficient cause and recorded reasons, and cannot be granted more than three times to a party.
- Section 123: for gold and manufactures thereof, watches and notified classes, the burden is on the person from whose possession the goods were seized, or on the claimant of ownership.
- Rupee limits for officers are not in the Act text; check the notification.
Read next
- Section 124: show cause notice before confiscation or penalty
- Sections 125 to 127: redemption fine and vesting of goods
- Sections 118 to 121: confiscation of packages, concealing goods and sale proceeds
- 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.