SHAHZAD vs The COLLECTOR OF CUSTOMS, MODEL COLLECTORATE OF CUSTOMS (PREVENTIVE), KARACHI Ss

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SHAHZAD VS The COLLECTOR OF CUSTOMS, MODEL COLLECTORATE OF CUSTOMS (PREVENTIVE), KARACHI Ss. 2(s), 157(2), proviso & 157(3)---S.R.O. 499(I) /2009,dated 13.06.2009---Smuggling---Vehicle carrying smuggled goods, confiscation of---No connection of owner of vehicle with smuggling---Burden of proof on owner ---An LPG bowser was found parked at a road side ; on search, foreign-origin High Speed Diesel/HSD was found in hidden cavities / a separate hole made in the roof of LPG bowser for transportation through vehicle-in-question---On the strength of the registration book found inside the vehicle-in-question, the petitioner being the owner was proceeded against, resulting in confiscation of both HSD and vehicle-in-question---Plea / defence of the petitioner / owner , seeking release of vehicle-in-question was that at the relevant time the vehicle-in-question, under an agreement , was with someone for transportation and that he was unaware of the smuggling of the goods i.e. foreign-origin HSD---Validity---Section 157 of the Customs Act, 1969 ('the Act 1969') unambiguously talks about the confiscation of the conveyance of whatever kind used in the removal of any goods liable to confiscation under the Act, 1969---Proviso to subsection (2) of section 157 of the Act, 1969 only caters for its release by an authorized officer of the customs as required by the prescribed rules pending adjudication of the goods involving its confiscation, subject to furnishing sufficient guarantee from the scheduled bank for due production of the conveyance at any time and place it is required by the appropriate officer to be produced---Subsection (3) of section 157 of the Act, 1969 also related to confiscation of vessel which includes, tackle, apparel and furniture---The distinction, however , was made in terms of the S.R.O. 499(I) / 2009, dated 13.06.2009 issued under first proviso to section 181 of S.R.O. 499(I) /2009,dated 13.06.2009 and such relaxation was not available where conveyance was found carrying smuggled goods in specially made cavities, hidden or being used exclusively and wholly for the transportation of the smuggled goods and where such activity was apparent---A hire agreement produced at the Tribunal stage was only a contract between two private persons and would not be convincing for the Court to take any different view, however, under the reference jurisdiction the High Court rightly discarded the effect of such agreement as nothing was produced in the two forums below---The burden to prove that the owner had no nexus with the smuggled goods or with such transaction and transportation was on the petitioner himself and which had not been discharged satisfactorily at all---Nothing was disclosed as to what amount was received by the petitioner under the contract nor the motor registration wing was informed of such contract as required under Motor Vehicle Rules, 1969---Surprisingly, the registration book was also found inside the vehicle, though an authority letter in said regard for driving the vehicle could have been sufficient as registration book was an important document to claim title --- Petitioner had also not satisfactorily discharged the burden that the hidden cavities or the separate hole made in the roof of LPG bowser for purposes of transporting goods was not in his knowledge and that such "rebuilding" of the LPG bowser has rendered its use for the transportation of LPG as unfit---When the petitioner had failed to disclose the disconnect between smuggled goods managed through his vehicle having special cavities for the transportation of the smuggled goods it would not leave the option to the owner to pay fine rather fell in the proviso to the Section 157(2) of Act, 1969 and, consequently, such options were not available---Thus, no case was made out to interfere with the impugned judgment passed by the High Court---Petition to leave to appeal was dismissed.

SHAHZAD vs The COLLECTOR OF CUSTOMS, MODEL COLLECTORATE OF CUSTOMS (PREVENTIVE), KARACHI Ss — 2025 SCMR 1912 SUPREME-COURT

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