Case Details

Citation(s)
2011 SLG 911 2011 SLD 911 2011 PTD 1228
Federal Tax Ombudsman
Complaint No.107/LHRICUS(05)/206/2010, decision dated: 14-04-2010
DR. MUHAMMAD SHOAIB SUDDLE, FEDERAL TAX OMBUDSMAN

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ABDUL WAHEED

VS

SECRETARY, REVENUE DIVISION, ISLAMABAD

Law: Customs Act, 1969

Section: 168

Customs Act (IV of 1969)--Ss. 168, 169 & 181---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss. 9 & 10---Request for release of confiscated vehicle on payment of leviable duties and taxes equal to 5% of the reserved price---Rejection of request---Vehicle was imported free of duties and taxes by the Consulate General of foreign country which vehicle was sold in the market after obtaining permission from the Ministry of Foreign Affairs---After registration, the vehicle finally reached in the hands of the complainant/owner, from whom it was seized by Customs Authorities for non-payment of leviable duties and taxes and was ordered outright confiscation by order-in-original of Deputy Collector Customs---Appeal filed by the complainant against order-in-original was accepted by Collector (Appeals) who allowed release of vehicle on payment of leviable duties and taxes---Complainant feeling aggrieved with order-in-appeal had filed complaint mainly on the ground that vehicle in question being five years old, demanding huge amount of duties and taxes on the same was unfair---Practice followed by the Customs Authorities in confiscating vehicles from the last buyer or forcing him to pay applicable taxes/duties, was arbitrary, unjust and unlawful---First purchaser was solely responsible for non payments of duties/taxes due, unless it was established that the subsequent purchasers acted in connivance with him--Recommendations were made to Federal Board of Revenue to allow complainant being, prima facie, an innocent buyer, to use the vehicle on the basis of any security instrument of 'Superdari'; and in the meanwhile find out the first buyer/actual evader of taxes for realizing applicable duties/taxes; to amend the relevant S.R.O. (Notification) making it obligatory for the Ministry of Foreign Affairs, not to issue the permission letter to sell the imported duty-free vehicles to foreign missions, unless the applicable duties/taxes had been duly paid by then; to issue instruction to Motor Vehicle Registration Authorities in Pakistan not to register any vehicle for the first time without obtaining credible proof of payment of applicable…
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