COLLECTOR OF CUSTOMS, MODEL COLLECTORATE OF CUSTOMS (PREVENTATIVE), CUSTOM HOUSE, KARACHI vs MEHRAJ Ss

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COLLECTOR OF CUSTOMS, MODEL COLLECTORATE OF CUSTOMS (PREVENTATIVE), CUSTOM HOUSE, KARACHI VS MEHRAJ Ss.2(s), 156(1)(8), 156(1)(89), 156(2), 157(2) & 168---SRO 499(I)/2009 dated 13.06.2009---Smuggling---Confiscation of goods / vehicle---Release of goods on payment of redemption fine /penalty---SRO 499(I)/2009, benefit of---Scope---Customs Department filed Reference Application as Customs Appellate Tribunal upheld the Order-in-Original, whereby the diesel was ordered to be confiscated but an option was given to the owner of the bus to redeem the seized bus on payment of redemption fine equivalent to 20% along with personal penalty of Rs.25000---Contention of the Applicant / Department was that the option to redeem the vehicle, which was used for smuggling by the owner himself, could not be given---Validity---Record revealed the bus (vehicle), when intercepted and confiscated , was found containing non-duty paid 6080 liters diesel oil ; and, at the time, the owner himself was driving the said vehicle---It was beyond comprehension that how the owner of the bus, who was driving the same, could be said to be not aware of the fact that the said bus was having secret inbuilt cavities in which smuggled non-duty paid diesel oil was present---When the Customs Officials intercepted and seized the bus, the said owner immediately offered that he was ready to pay the duty and taxes in respect of the smuggled diesel oil---Reading of SRO 499(I)/2009 along with Ss. 181 & 157 of the Customs Act, 1969, left no room for doubt that only in those cases option is available to the owner who is said to be not aware that smuggling is being carried out in his vehicle---However, in present case, it was the owner himself who was driving the bus, hence no leave could be given to the owner on the basis of the fact that he was not aware of the secret inbuilt cavities available in the bus---SRO 499(I)/2009 provides release of the goods on payment of redemption fine and penalty to a registered owner but when it is found that the vehicle is carrying offending goods, the said vehicle is not liable to be released upon payment of fine---Customs Appellate Tribunal was not justified in directing release of the vehicle upon payment of redemption fine---Answer to the question was given in "Negative" i.e. in favour of the Applicant / Department and against the respondent---High Court set-aside impugned order passed by the Customs Appellate Tribunal---Special Customs Reference Application, filed by the Department, was allowed accordingly.

COLLECTOR OF CUSTOMS, MODEL COLLECTORATE OF CUSTOMS (PREVENTATIVE), CUSTOM HOUSE, KARACHI vs MEHRAJ Ss — 2025 PTD 626 KARACHI-HIGH-COURT-SINDH

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