DIRECTOR, DIRECTORATE INTELLIGENCE AND INVESTIGATION (CUSTOMS) vs MUHAMMAD SABIR Ss

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DIRECTOR, DIRECTORATE INTELLIGENCE AND INVESTIGATION (CUSTOMS) VS MUHAMMAD SABIR Ss. 156(1), clause 89(i) & 187---Sea Customs Act (VIII of 1878) (since repealed), S. 177-A---Foreign origin goods---Smuggling, allegation of---Burden of proof and onus of proof---Distinction---Shifting onus---Importable goods available in market---Presumption of duty-paid goods---Scope---The phrase “burden of proof” has two meanings: one, the burden as a matter of law arising from pleadings, which remains constant; and the other, the burden of establishing a case, which shifts as evidence is adduced---The latter is described as “onus of proof”, which initially lies on the possessor under cl. 89(i) of S. 156(1) and S. 187 of the Customs Act, 1969---Once the possessor produces prima facie evidence indicating lawful possession, the onus shifts to the prosecution---These provisions do not mean that the ultimate burden always remains on the possessor---For attracting Cl.89(i) of S. 156(1), there must exist at least a “reasonable suspicion” that the goods are smuggled---A similar condition of “reasonable belief” existed under S. 177-A of the Sea Customs Act, 1878---Where goods are importable and available in the local market, a presumption arises that such goods are duty-paid---Therefore, an allegation of smuggling merely on the basis of foreign origin is insufficient without reasonable suspicion---The Respondent produced purchase receipts issued by local scrap vendors to show purchase from local market---In such circumstances, the onus shifted to the Applicant/Department to prove smuggling, which it failed to discharge---The contention of the Applicant that S. 187 absolved it from proving smuggling was misconceived---Therefore, the question of law was answered in favour of the Respondent and against the Applicant/Department---Special Customs Reference Application filed by the Department was dismissed.

DIRECTOR, DIRECTORATE INTELLIGENCE AND INVESTIGATION (CUSTOMS) vs MUHAMMAD SABIR Ss — 2026 PTD 770 KARACHI-HIGH-COURT-SINDH

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