MUHAMMAD IQBAL vs COLLECTOR OF CUSTOMS (E&C) D — 2025 PTD 1889 CUSTOMS-APPELLATE-TRIBUNAL-LAHORE

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MUHAMMAD IQBAL VS COLLECTOR OF CUSTOMS (E&C) D.I. KHAN Ss.181, 194-B, 194-C(7) & 194-C(8)---Release of goods---Condition attached---Adjudicating Officer and Customs Appellate Tribunal---Powers---Customs Appellate Tribunal ('the Tribunal') released goods i.e. husk (Ispaghol), almond without shell and apricot seeds without shell ('the goods-in-question') against the payment of duties/taxes plus redemption, however, the High Court remanded the matter to the Tribunal---Whether an option under S.181 of the Customs Act, 1969 ('the Act 1969') could be given to the appellants to redeem the goods against redemption fine in addition to payment of customs duty/taxes or not?---Held: As per spirit of S.181 of the Act 1969 , an officer passing order under the Act 1969, can give option for the release of the goods against redemption fine as per the rates fixed in the SROs in field, in addition to payment of duty/taxes, however, in the present case, the Adjudicating Officer did not exercise his discretionary powers and had outrightly confiscated the goods---However, when the matter came up to the Customs Appellate Tribunal ('the Tribunal') , the goods were released against redemption fine in addition to payment of duty/taxes leviable thereon by the then Member (Judicial), after hearing and considering the fact that release of the said perishable goods would be more beneficial to the exchequer instead of dumping the same in the state warehouse for un-determined period at public cost and for further litigation---No doubt, the Tribunal has not been entrusted with such special powers as that entrusted to an Adjudicating Officer of the Customs but under S.194-B of the Act 1969, the Tribunal has certain powers of confirming, modifying or annulling the decision or order appealed against as it "thinks fit"---The words "thinks fit" bestows discretion to a judge of the Tribunal as to what points are appropriate and fit while delivering a judgment and , therefore, the then Member had released the goods against the payment of duty/taxes plus redemption---Besides, the said powers, more powers under subsections (7) and (8) of S.194-C of the Act, 1969 have been given to the Tribunal---Moreover, the Tribunal , while exercising its powers as a Court, releases the seized/confiscated goods in exceptional cases, against payment of redemption fine in addition to payment of duty/taxes and also bestows balance between the enforcing customs laws and mitigating the harshness of outright confiscation subject to the principles of natural justice---The Tribunal being an independent judicial body, is tasked with adjudicating disputes relating to customs matters, including appeals against the decisions of customs adjudicating authorities---Prime obligation of the Tribunal is to espouse, interpret and apply the law, not to follow executive instructions uncritically---When an appeal come before the Appellate Court the appeal proceedings of lower forum continue as of the original proceedings and the Appellate forum has all powers under its sleeves which the original forum is vested with under the law---After the judgment of Appellate forum under the principle of merger the judgments and proceedings of the lower fora merge into judgment of the Appellate Court---Therefore, the Tribunal, has full authority to confirm, modify and annul the decision or order appealed against---In cases such as the present one release of the goods against payment of duty and taxes/fine will be more beneficial to the exchequer instead of dumping the same in the state warehouse for undetermined period at public cost and for further proposed litigation---The collection of handsome revenue in the shape of payment of customs duty/taxes/redemption fine is more appropriate as compared to disposal of the goods through lengthy auction procedure and also to avoid deterioration/damage of the goods---Customs Appellate Tribunal modified the impugned Order-in-Original to the extent of release of goods-in-question against redemption fine @20% in addition to payment of all leviable custom duties/taxes---Appeal , filed by importer, was allowed accordingly.

MUHAMMAD IQBAL vs COLLECTOR OF CUSTOMS (E&C) D — 2025 PTD 1889 CUSTOMS-APPELLATE-TRIBUNAL-LAHORE

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