Law: Customs Act, 1969

Section: 89,196,2(s), 16, 18, 156(1)(2) & 157(1)(2),3(3)

Law: Imports and Exports (Control) Act, 1950

Section: 3(1)

Law: Sales Tax Act, 1990

Section: 3

Law: Income Tax Ordinance, 2001

Section: 148

Summary:

The Reference Application under Section 196 of the Customs Act, 1969, raised questions regarding the confiscation of a lawfully registered vehicle and the interpretation of certain clauses under SRO 499(I)2009 dated 13.06.2009. The applicants argued that the confiscation of their vehicle, which was carrying smuggled goods, was unjustified as the vehicle was not previously used for smuggling, and no false cavity was found.

The Court reviewed the legal distinction between "liable to be confiscated" and "shall be confiscated," finding that the phrase "liable to be confiscated" allows for discretion, not automatic confiscation. The Court referred to prior rulings that emphasized the need for discretion based on the facts, principles of natural justice, and the opportunity for the accused to present their case. It was determined that the Appellate Tribunal had erred in its decision by not considering these principles.