COLLECTOR OF CUSTOMS, MODEL CUSTOMS COLLECTORATE, HYDERABAD vs ABDUL SATTAR Ss

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COLLECTOR OF CUSTOMS, MODEL CUSTOMS COLLECTORATE, HYDERABAD VS ABDUL SATTAR Ss. 2(s), 156(1), 157(2), 171 & 215---SRO No. 499(I)/2009 dated 13-06-2009---Smuggling, allegation of---Vehicle used in smuggling of fuel, confiscation of---Release of the vehicle-in-question (Oil Tanker) against the payment of 20% fine---Allegation was that Oil Tanker was used for smuggling of High Spirit Diesel (HSD) without proper documentation---Department filed Reference application as the Customs Appellate Tribunal while setting aside Order-in-Original, ordered release of the vehicle-in-question (Oil Tanker) to the respondent, being lawful owner, against the payment of 20% fine---Plea of the applicant / Department was that Oil Tanker was very much part and parcel of the illegality and violation made by the respondent---Validity---Record revealed that when the Oil Tanker was taken into custody there was nobody in it, thereafter it was taken to the concerned Customs House---When a Show-Cause Notice was issued, in response the owner of the Oil Tanker appeared and submitted before the Customs Authorities ('the Authorities') that he had nothing to do with the HSD and stated that his Oil Tanker was plying on hire basis---High Court viewed that though the Customs Authorities rightly impounded the HSD as no person claiming its ownership came forward clearly depicting that it was smuggled ,hence seizing of the Oil Tanker was not justified when complete ownership documents of it were duly furnished---At the time of raid, interestingly, the subject-vehicle (Oil Tanker) was found abandoned but it was also said to have been registered with the Motor Vehicle Authority---However, the Authorities failed to acquire details and to issue Show-Cause Notice to the owner---Though ownership documents of the Oil Tanker were furnished, however, no effort was made by the Authorities to verify the same from the Excise Department---Prior to the incident, which took place on 26-5-2015 with regard confiscation of the HSD in the Oil Tanker, the Department was not in possession of any material or evidence against the owner of the Oil Tanker to be involved in any objectionable activity---It was only when the Authorities failed to release the Oil Tanker, the respondent approached the High Court and got directions for the release of the Oil Tanker subject to furnishing ownership documents to the Nazir and obtaining an undertaking from the owner that till such time the present Special Customs Reference Application was pending he would not sale out the said Oil Tanker---Customs Appellate Tribunal while allowing the appeals had categorically observed that after seizing the Oil Tanker necessary legal requirements with regard to issuing proper Show-Cause Notice to the owner and confronting him on other aspects was not carried out by the Department, which was in violation of mandatory provision of S. 171 of the Customs Act, 1969---Authorities made no effort to create a link between the HSD and the Oil Tanker, which established that the confiscation of HSD and the Oil Tanker were two different aspects requiring different treatments---However, it was observed that a somewhat similar treatment was accorded by the Department to the HSD as well as to the Oil Tanker---Nobody came forward to claim ownership of the HSD whereas owner of the Oil Tanker was claimed through some documents but the HSD and the Oil Tanker were incorrectly treated alike by the Authorities---Hence, the Department had simply failed to make out case of smuggling/confiscation of the Oil Tanker as mentioned under S.2(s) of the Customs Act, 1969, and no misinterpretation on the part of the Customs Appellate Tribunal had either been found or established by the Department---Therefore, confiscation of the Oil Tanker was unwarranted and could not be approved---High Court, in circumstances, confirmed the release of the vehicle (Oil Tanker) and answered the question raised in the present matter in negative i.e. against the Department and in favour of the Respondent---Special Customs Reference Application, filed by the Department, was dismissed.

COLLECTOR OF CUSTOMS, MODEL CUSTOMS COLLECTORATE, HYDERABAD vs ABDUL SATTAR Ss — 2024 PTD 1330 KARACHI-HIGH-COURT-SINDH

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