Customs Act, 1962 › Chapter XVII — Miscellaneous

Section 150. Procedure for sale of goods and application of sale proceeds

Customs Act, 1962

Bare Act

Procedure for sale of goods and application of sale proceeds. —

(1) Where any goods not being confiscated goods are to be sold under any provisions of this Act, they shall, after notice to the owner thereof, be sold by public auction or by tender or with the consent of the owner in any other manner.

(2)The proceeds of any such sale shall be applied -

(a) firstly to the payment of the expenses of the sale,

(b) next to the payment of the freight and other charges, if any, payable in respect of the goods sold, to the carrier, if notice of such charges has been given to the person having custody of the goods,

(d) next to the payment of the charges in respect of the goods sold due to the person having the custody of the goods,

(e) next to the payment of any amount due from the owner of the goods to the Central Government under the provisions of this Act or any other law relating to customs, and the balance, if any, shall be paid to the owner of the goods:

Provided that where it is not possible to pay the balance of sale proceeds, if any, to the owner of the goods within a period of six months from the date of sale of such goods or such further period as the Principal Commissioner of Customs or Commissioner of Customs may allow, such balance of sale proceeds shall be paid to the Central Government.

Judgments on Section 150

S.Thiyagarajan vs Assistant Commissioner Of Customs… — Madras High Court, 16 Jun 2026. Where redemption of seized goods is allowed under Section 125 and the department has disposed of the goods without notice in breach of Section 110(1A) and the 14.02.2006 circular, it must pay the owner the value of the…
Union Of India vs M/S. Associated Container Terminal Ltd. — Supreme Court of India, 14 Feb 2020. Where warehoused goods are sold for non-payment of rent or warehouse charges, customs duty is to be computed by backward calculation on the sale proceeds as cum-duty price and appropriated per the priority in Section…
Shreyans Kothari vs Chief Commissioner Of Customs — Bombay High Court, 16 Oct 2026. If customs sells seized goods without giving the owner the prior notice required by Section 150(1) of the Customs Act, and the owner later succeeds, the owner must be paid the fair market value on the date of release,…
Mahendra Kumar Thakker vs Commissioner Of Customs Preventive — CESTAT, 23 Apr 2026. A person found in conscious concealed possession of gold who fails to discharge the burden of proof under section 123 of the Customs Act, 1962 cannot escape confiscation and penalty under section 112(b) on mere…
Kolkata(Port) vs Shriram Warehousing Pvt Ltd — CESTAT, 16 Apr 2025. Under Section 150(2) of the Customs Act, 1962, sale proceeds must be applied in the statutory order of priority—first to expenses of sale, next to freight and other charges payable to the carrier under Section…
Dinesh Bhabootmal Salecha vs Commissioner Of Customs Mumbai Import -… — CESTAT, 23 Jun 2022. Provisional release of seized goods under section 110A is an independent proceeding that must be allowed immediately upon seizure notwithstanding pendency of adjudication, and the security demanded must be…
Chairman, Board Of Trustees, C.P.T. vs M/S Arebee Star Maritime Agen.Pvt.L — Supreme Court of India, 5 Aug 2020. Once a Port Trust takes charge of goods and gives a receipt, liability for storage/demurrage falls on the importer, owner, consignee or their agent, and neither the passing of title nor endorsement of the bill of lading…