COLLECTOR OF CUSTOMS COLLECTORATE OF CUSTOMS (APPRAISEMENT) (WEST), LAHORE vs MUHAMMAD RIZWAN

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COLLECTOR OF CUSTOMS COLLECTORATE OF CUSTOMS (APPRAISEMENT) (WEST), LAHORE VS MUHAMMAD RIZWAN. S. 181---Import Policy, 2022, Paras. 3, 4 & Appendix-E---Notification SRO 499(I)/2009 dated 13-06-2009---Import of vehicles beyond three years old models---Prospective overruling, doctrine of---Applicability---The authority passed an order for outright confiscation of vehicles in question as the same were older than the model allowed to be imported. The Customs Appellate Tribunal gave an option to importers for release of vehicles on payment of redemption fine at the rate of 35 per cent of the value of the vehicle, including duties and taxes, and the penalty imposed upon the importer was also reduced. The High Court maintained the order passed by the Customs Appellate Tribunal. Validity: The doctrine of prospective overruling has developed in many jurisdictions where the Court realizes that on account of long-standing interpretation, the new, recent and corrected interpretation may cause injustice and thus limit its effects to the future. Such doctrine though limits the retroactive effect, it however creates unfairness by denying a successful party the benefits of the success or victory they fought for and may undermine the incentive for parties to seek legal changes in future. A successful litigant, under the doctrine of prospective overruling, never gets the fruits of success. Judicial interpretation of a statute thus ordinarily applies and operates retrospectively. It, however, varies when the vires of law is challenged on the touchstone of any right guaranteed by the Constitution and is or was being infringed and the interpretation or pronouncement nullifies it. The Supreme Court set aside the orders passed by the High Court and Customs Appellate Tribunal providing release of vehicles on payment of redemption fine at the rate of 35 percent. The Supreme Court restored the orders-in-original passed by the authority for outright confiscation of vehicles, which stood confiscated without any option of fine to be made available to importers under Section 181 of the Customs Act, 1969, however, Clause 6 of Appendix-E to the Customs Act, 1969 could be invoked by respondents or importers. The appeal was allowed.

COLLECTOR OF CUSTOMS COLLECTORATE OF CUSTOMS (APPRAISEMENT) (WEST), LAHORE vs MUHAMMAD RIZWAN — 2026 PTD 909 SUPREME-COURT

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