| Citation(s) |
|---|
| 2025 SLG 3705 2025 SLD 3705 = 2025 SHC 1969 |
Constitution Petition No. D- 3428 of 2025
Mr. Justice Zulfiqar Ali Sangi Mr. Justice Nisar Ahmed Bhanbhro
Collector of Customs Appraisement Karachi through Mr. Khalil Jakhro, Advocate Collector of Customs Enforcement Karachi Through Mr Asif Ali Siyal, Advocate
[Noman Liaqat Proprietor of M.H. Traders v. Federation of Pakistan and others]
Law: Customs Act, 1969
Section: 32,79,156,178,187,209,194A,202
Law: Sales Tax Act, 1990
Section: 33
Summary:
The petitioner, owner of M.H. Traders Pvt Ltd, imported goods which were seized by customs for misdeclaration of weight to evade duty. The Collector of Customs (Adjudication-I) imposed a penalty and duty for the discrepancy but declared the classification correct. Despite the petitioner's willingness to pay penalties, customs refused to release the goods due to an appeal filed by customs before the Appellate Tribunal. The court held that mere filing of an appeal does not stay the release and directed the customs to release the goods within 10 days subject to the outcome of the appeal, emphasizing that departmental processes for duty and consignment release should be timely and lawful.
Core Points:
- Petitioner accused of misdeclaration in import weight leading to seizure.
- Penalty and differential duty imposed by Adjudicating Authority.
- Petitioner willing to pay penalty and duty; customs refused release goods citing an appeal.
- No stay order from the Appellate Tribunal exists to withhold goods.
- Mere appeal filing does not automatically operate as a stay on release.
- Customs can recover disputed amount later through coercive measures if appeal outcome favors them.
- Court directs release of goods within 10 days as per adjudication order.
- Duty and penalty issues should be resolved within customs department; courts avoid undue interference.
Law and Sections Table:
| Law/Act | Section | Provision Summary |
|---|---|---|
| Customs Act, 1969 | 32 | False statement or declaration to customs officer is an offense. |
| Customs Act, 1969 | 79 | Requirement for filing goods declaration for imports/exports. |
| Customs Act, 1969 | 156 | Penalty for offenses including misdeclaration, with fines and possible confiscation. |
| Customs Act, 1969 | 178 | Punishment of persons accompanying goods liable to confiscation. |
| Customs Act, 1969 | 187 | Restriction on possession or movement of goods liable to confiscation. |
| Customs Act, 1969 | 209 | Liability of principal and agent for customs offenses. |
| Customs Act, 1969 | 194A | Appeal to Customs Appellate Tribunal against adjudication orders. |
| Customs Act, 1969 | 202 | Recovery of government dues including disputed customs debts. |
| Sales Tax Act, 1990 | 33 | Penalty for violations related to sales tax and related declarations or payments. |
J U D G M E N T