Law: Customs Act, 1969

Section: 2(s), 15, 16, 157 & 181, 196

(a)   Customs Act (IV of 1969)---

----Ss. 2(s), 15, 16, 157 & 181, provisos to the Explanation [as added vide Finance Act, 1992]---SRO 499(I)/2009 dated 13-06-2009---Smuggled goods---Conveyance--"Liable to confiscation"---Scope---Confiscated smuggled goods/vehicle, release of---Payment of fine---Collectorate filed Reference Application against order passed by the Customs Appellate Tribunal whereby vehicle/container was released against payment of 20% redemption fine---Validity---Section 157(2) of the Customs Act, 1969, stipulates that "a conveyance used in the removal of any goods liable to confiscation under the Act such as smuggled goods shall also be liable to be confiscation"---Expression "liable to confiscation" in said S. 157(2) cannot be equated with "shall be confiscated"---On the other hand, S. 181 of the Act, 1969 envisages that whenever an order for the confiscation of goods has to be passed under the Act, 1969, the officer concerned before passing the confiscation order may give the owner of the goods an option to pay fine in lieu of the said confiscation---However, through Finance Act, 1992, two provisos were added to the Explanation to S.181 of the Act, 1969---The first proviso has empowered the Federal Board of Revenue (Board) to specify the goods or class of goods where such options shall not be given---Second provision further empowered the Board to fix the amount of fine which in lieu of confiscation shall be imposed on any goods and class of goods imported in violation of provision of S. 15 or notification issued under S. 16 of the Act, 1969---Board had under the said proviso to the Explanation of S. 181 of the Act, 1969 issued various order/SRO's expressly prohibiting inter alia the release of confiscated smuggled goods/vehicle on payment of exemption fine and fixing the fine to be imposed in lieu of confiscation---Reference Application , filed by the Collectorate, was dismissed.