Release of machine by customs: IHC upholds President’s and FTO’s decision

ISLAMABAD: The Islamabad High Court has upheld the President’s and Federal Tax Ombudsman’s decision directing Lahore Customs collector to get a radiation machine meant for cancer patients’ treatment released within, which had been lying with MS Gerry’s Dnata (Pvt) Ltd since 2023.

Previously, Federal Tax Ombudsman (FTO) Honourable Asif Mahmood Jah directed the Lahore Customs collector to get a radiation machine meant for cancer patients’ treatment released within seven days, which had been lying with MS Gerry’s Dnata (Pvt) Ltd since 2023. Gerry’s filed representation before the president against the findings of the FTO which was dismissed.

Later on, Gerry’s approached Honourable Islamabad High Court invoking its writ jurisdiction against the president’s order which, too, has been dismissed in limini by the honourable single bench.

Speaking to media, Advisor FTO Almas Ali Jovindah said that the decision of the Honourable High Court holds immense importance and will set precedence against such backlog in future to avoid any handicap to medical treatment.

The radiation machine had been lying in the shed of the Collectorate of Customs, Lahore, since April 4, 2023 and the Gerry’s was refusing to release the machine without payment of the extra cost for keeping the shipment with it in the warehouse, despite the fact that Customs authorities had issued a Delay and Detention Certificate (DDC) for waiving off the storage charges.

The president issued the order keeping in view the sensitive nature of the equipment and the noble cause of serving humanity, particularly the cancer patients. The president warned that in case of non-compliance the Customs collector shall initiate necessary proceedings against the company under the law.

The president lamented that the Gerry’s did not consider it a serious matter, and refused to release the machine without getting a huge payment for warehouse charges, thus, making those cancer patients and poor people of Pakistan suffer who get treatment from the public sector hospitals of the country. “Exploitative business in this manner without a compassionate understanding of issues is regrettable,” he added.

UPHOLDS FTO’S VERDICT

The Mayo Hospital Lahore chief executive officer had filed a complaint with Federal Tax Ombudsman (FTO) against the Collectorate of Customs, Allama Iqbal International Airport (AIIAP), Lahore, on the refusal of M/s Gerry’s to honour the Delay and Detention Certificate (DDC) issued by the Customs assistant collector (AC) and release the machine.

According to him, the hospital had imported a Cobalt-60 Source for radiation of cancer patients, which was to be the only machine available for patients in public sector hospitals. The machine was lying in the shed of the Collectorate of Customs, AIIAP since April 4, 2023 due to the non-availability of funds to pay the outstanding charges to M/s Gerry’s. The customs authorities had forwarded the matter to the cargo manager of Gerry’s Dnata Shed, AIIAP, Lahore, who refused to release the consignment without payment of the outstanding charges.

The complainant had sought waiving off the charges and release of the equipment on an urgent basis, but to no avail. Feeling aggrieved, he approached FTO, who asked the Customs collector of AIIAP, Lahore to immediately coordinate with Gerry’s for release of the machine.

The Gerry’s then filed a representation against FTO’s decision with the President. The president, after hearing the case, noted that the Gerry’s had not implemented the DDC by not releasing the machine, in violation of the provisions of the Customs Act 1969.

He highlighted that the legislature had imposed a penalty upon those who failed to honour the duly issued DDC and the provisions of the Act were to be strictly construed and were mandatory. He referred to Section 14-A of the Customs Act which provides that if any agency or persons managing or owning a Customs airport facility fails to entertain a DDC issued by the officer of the Customs, such agency or person shall be liable to a penalty not exceeding Rs500,000.

He said that the DDC issued by the AC of Customs had to be honoured, and the Act’s provisions could not be ignored by the Gerry’s.

Copyright Business Recorder, 2024