| Citation(s) |
|---|
| 2025 SLG 4887 = 2025 SLD 4887 = 2025 SCP 433 = 2026 PTCL 134 = 2026 SCMR 885 = 2026 PTD 1077 |
Civil Petitions No. 2853 and 2854 of 2025 [Against order dated 20.05.2025 of the Peshawar High Court, Peshawar passed in Customs Reference Nos.84- P and 85-P of 2025] Civil Petition No. 3566 of 2025 [Against judgment dated 29.05.2025 of the Peshawar High Court, Peshawar passed in Custom Reference No.87-P of 2025]
Mr. Justice Yahya Afridi, CJ Mr. Justice Muhammad Shafi Siddiqui Mr. Justice Miangul Hassan Aurangzeb
Syed Hammad Hussain Shah, ASC.
Director, Intelligence & Investigation (Customs), FBR, Peshawar. ....Petitioner
VERSUS
Muhammad Ishaq. [In CP.2853/25] Muhammad Rizwan. [In CP.2854/25] ....Respondent Director of Customs, (Enforcement), Model Custom Collectorate, Peshawar. ....Petitioner Versus Noor ud Din Shah and another. … Respondents
Law: Customs Act, 1969
Section: 157(2),168, 180, 181,187
Summary
The Supreme Court of Pakistan ruled that lawfully registered vehicles used exclusively for transporting smuggled goods cannot be released on payment of a redemption fine under Section 181 of the Customs Act, 1969, due to the prohibitive effect of FBR's S.R.O. 499(I)/2009 (as amended, including by S.R.O. 1619(I)/2024), which mandates outright confiscation without discretion for adjudicating or appellate authorities.-
Core Points
- A Bedford truck (Reg. No. K-1780-D.I. Khan) was seized on 07.10.2024 carrying smuggled PU-coated fabrics and used tyres without import documents, leading to outright confiscation by the Additional Collector (Order No. 367/2024, 18.12.2024).
- The Customs Appellate Tribunal (13.03.2025) allowed vehicle release on 40% redemption fine, but the Peshawar High Court (20.05.2025, Custom Reference No. 84-P/2025) upheld it, erroneously deeming the 2024 amendment non-retrospective and discretionary.
- Supreme Court, relying on its prior ruling in Bashir Ahmed, converted petitions into appeals, set aside lower fora judgments, restored outright confiscation, and affirmed S.R.O. 2009's continuous bar (with brief 2024 relaxations rescinded).-
- Applies to vehicles used wholly/exclusively for smuggled goods under Section 2(s), closing loopholes and strengthening anti-smuggling enforcement.-
Key Laws and Sections
| Section/Provision | Description |
|---|---|
| Section 157(2) | Renders conveyances used in smuggling liable to confiscation.- |
| Section 168, 180 | Empower seizure of goods and vehicles lacking lawful documents.- |
| Section 181 (first proviso) | Allows redemption fine option, but Board notifications (e.g., S.R.O. 499(I)/2009) prohibit it for smuggled goods under Section 2(s) and exclusive-use vehicles; no discretion remains.- |
| Section 187 | Places burden on owner to prove lawful importation.- |
| S.R.O. 499(I)/2009 (13.06.2009, amended incl. S.R.O. 1619(I)/2024, 03.10.2024) | Bars redemption for smuggled goods (2(s)) and lawfully registered conveyances used exclusively/wholly for such transport, including in false cavities or containers. |
JUDGMENT