Customs and Excise laws form a vital part of India’s indirect taxation and regulatory framework, governing the import, export, manufacture, and levy of duties on goods. These laws play a crucial role in facilitating international trade, safeguarding government revenue, and ensuring regulatory compliance. Customs law in India is primarily governed by the Customs Act, 1962, while excise law continues to apply in a limited sphere under the Central Excise Act, 1944, following the introduction of the Goods and Services Tax (GST), which subsumed most central excise duties.

The Customs Act, 1962 empowers the Central Government to levy and collect duties on goods imported into and exported from India, regulate customs clearance procedures, prevent smuggling, and ensure compliance with trade, foreign exchange, and allied laws. Customs duties may include Basic Customs Duty, Social Welfare Surcharge, anti-dumping duty, safeguard duty, and countervailing duty, depending on the nature, value, and origin of goods. Customs administration is carried out by the Central Board of Indirect Taxes and Customs (CBIC) through officers posted at ports, airports, inland container depots, and land customs stations. Disputes commonly arise in matters relating to valuation, classification, exemption benefits, confiscation of goods, penalties, provisional assessments, and allegations of misdeclaration or duty evasion. Adjudication is undertaken by customs authorities, with appeals lying before the Commissioner (Appeals), the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and thereafter before the High Courts and the Supreme Court of India. Investigations and enforcement actions are frequently conducted by specialized agencies such as the Directorate of Revenue Intelligence (DRI), Special Intelligence and Investigation Branch (SIIB), and Customs Preventive formations.

Post-GST, central excise duty remains applicable mainly to petroleum products, tobacco, pan masala, and certain other notified goods. The Central Excise Act, 1944 continues to govern manufacture-based levy, registration, assessment, recovery, and penal provisions for these products, with enforcement and adjudication handled by CBIC officers and disputes following the same appellate hierarchy as customs matters. Indian courts have consistently emphasized adherence to due process, proportionality of penalties, and constitutional safeguards in customs and excise enforcement, particularly in cases involving arrest, seizure, and prosecution, while simultaneously upholding statutory enforcement powers when exercised strictly in accordance with law.

India’s indirect tax framework, including Customs, Excise, and GST laws, has undergone significant reforms in 2025 to align with global trade practices, improve compliance efficiency, and enhance digitisation. Under customs law, provisional assessments are now subject to defined time limits, voluntary post-clearance digital revision mechanisms have been introduced to promote self-compliance, tariff structures have been rationalised, and exemption notifications consolidated to simplify compliance. The government’s continued push toward an integrated digital customs ecosystem aims to reduce paperwork, delays, and transaction costs. GST reforms have rationalised rate structures, strengthened procedural safeguards, and enhanced clarity in enforcement, while excise law reforms focus on restructuring duties on limited categories of goods to ensure revenue stability.

Overall, Customs and Excise law in India remains a highly technical, compliance-intensive, and enforcement-driven area, requiring continuous interaction with regulatory authorities and litigation before specialized tribunals and constitutional courts. Businesses engaged in cross-border trade or regulated manufacturing must adopt proactive compliance strategies, respond promptly to investigations, and seek strategic legal representation to effectively protect their commercial and legal interests and avoid costly penalties arising from non-compliance.