| Citation(s) |
|---|
| 2025 SLG 5288 2025 SLD 5288 = 2025 SCP 452 = 2026 PTCL 177 = (2026) 133 TAX 253 = 2026 PTD 909 |
Civil Petitions No.4334 to 4363 of 2025 [Against orders dated 30.07.2025 of the Lahore High Court, Lahore passed in Customs Reference Application Nos. 28724 to 28750/25, 28752, 28754 and 28755/25]
Mr. Justice Naeem Akhter Afghan Mr. Justice Muhammad Shafi Siddiqui Mr. Justice Miangul Hassan Aurangzeb
Mr. Shaukat Hayat, ASC Assisted by Mr. Ahsan Mehmood, ASC. Mr. Shaukat Ayaz, ASC.
Collector of Customs Collectorate of Customs (Appraisement) (West), Lahore. … Petitioner (In all cases)
VERSUS
Muhammad Rizwan and others. (In CPLA 4334/25) Jamshid Ullah and others. (In CPLA 4335/25) Kifayat Ullah and others. (In CPLA 4336/25) Kashif Ali and others. (In CPLA 4337/25) Sanaullah and others. (In CPLA 4338/25) Saif Ullah and others. (In CPLA 4339/25) Nadeem Ullah and others. (In CPLA 4340/25) Amjad Ali and others. (In CPLA 4341/25) Ali Rehmand and others. (In CPLA 4342/25) Imran Khan and others. (In CPLA 4343/25) Kamran Khan and others. (In CPLA 4344/25) Yasir Zaman and others. (In CPLA 4345/25) Hazrat Hussain and others. (In CPLA 4346/25) Shan Zeb Khan and others. (In CPLA 4347/25) Kamran Ahmed and others. (In CPLA 4348/25) Musa and others. (In CPLA 4349/25) Muhammad Shakir and others. (In CPLA 4350/25) Arshad Ali and others. (In CPLA 4351/25) Maqbool Hussain and others. (In CPLA 4352/25) Anees Ahmed and others. (In CPLA 4353/25) Farid Ullah and others. (In CPLA 4354/25) Shakoor Khan and others. (In CPLA 4355/25) Akhtar Hussain and others. (In CPLA 4356/25) Ubaid Ullah and others. (In CPLA 4357/25) Khalil ur Rehman and others. (In CPLA 4358/25) Shahzeb and others. (In CPLA 4359/25) Naimat Ullah and others. (In CPLA 4360/25) Shehbaz Ahmed and others. (In CPLA 4361/25) Shahzeb and others. (In CPLA 4362/25) Murad Ali and others. (In CPLA 4363/25) …Respondents
Law: Customs Act, 1969
Section: 16, 17, 32(1), 79, 180, 209,181, 156
Law: Imports and Exports (Control) Act, 1950
Section: 3(1)
Summary
The Supreme Court of Pakistan, in a common judgment by Justice Muhammad Shafi Siddiqui, allowed civil petitions against the import of vehicles under the baggage scheme (Appendix-E, IPO 2022) that exceeded the prescribed age limits (3-5 years). The Court ruled that such vehicles are not importable, leading to outright confiscation without the option of redemption fine under Section 181 of the Customs Act, 1969, due to SRO 499(I)/2009's Clause (f), which bars this option for items violating procedural requirements of the Import Policy Order. Lower forums erred in interpreting the policy to allow release on fine, as prior leave-refusing orders did not address SRO 499's full effect. The judgment applies retrospectively per Blackstonian theory, restoring the Collector's original confiscation orders, with re-export possible under Appendix-E para 6.
Core Points
- Vehicles imported under personal baggage/gift/transfer of residence scheme (Appendix-E, IPO 2022) must not exceed 3 years (cars) or 5 years (other vehicles); older ones are non-importable.
- Tribunal and High Court wrongly allowed release on 35% redemption fine, misapplying Appendix-C exemptions and ignoring SRO 499(I)/2009 Clause (f), which denies fine option for IPO procedural violations unless conditions met.
- Show cause notices adequately charged violations under Customs Act sections and IPO; no need to explicitly cite SRO 499's denial of redemption.
- Prior Supreme Court leave refusals (e.g., CPLA 3598-L/2019, 1720-1721-L/2021) did not interpret SRO 499's interplay with Appendix-E, lacking binding ratio.
- Judicial interpretation is retrospective (Blackstonian doctrine), overriding alleged "vested rights" from erroneous lower court practices; prospective overruling is exceptional only.
- Petitions converted to appeals, High Court/Tribunal orders set aside; vehicles confiscated outright, re-export option under Appendix-E para 6 available.
Relevant Laws and Sections
| Law/Document | Key Section/Clause | Provisions Summary |
|---|---|---|
| Import Policy Order, 2022 (IPO 2022) | Appendix-E, Para 3 | Caps vehicle age at 3 years (cars) or 5 years (other vehicles) for baggage/gift/transfer schemes; older vehicles non-importable (exempts bulletproof used vehicles only). |
| IPO 2022 | Appendix-E, Para 6 | Allows re-export permission for vehicles imported in contravention (with provisos). |
| IPO 2022 | Para 16 | Regulates vehicle imports under baggage schemes per Appendix-E procedures. |
| Customs Act, 1969 | Sections 16, 17, 32(1), 79, 180, 209 | Violations for misdeclaration, non-compliance with import rules; punishable under Section 156(1) Clauses 9, 14, 90. |
| Customs Act, 1969 | Section 181 | Allows redemption fine in lieu of confiscation, but FBR may specify exclusions via notification. |
| SRO 499(I)/2009 (13.06.2009) | Clause (f) | No redemption fine option for "restricted and other items subject to procedural requirements under IPO unless conditions fulfilled." |
| Imports & Exports (Control) Act, 1950 | Section 3(1) | Empowers Federal Government to issue IPO for regulating imports/exports. |
JUDGMENT