Customs Tribunal rules in favour of vehicle owner, waives penalty

LAHORE: The Customs Appellate Tribunal has dismissed an appeal filed by the Collectorate, upholding the decision of the Collector Adjudication to release a confiscated vehicle on payment of redemption fine along with penalty.

Brief facts of the case are that during the course of routine checking at a road, the Customs team saw a Suzuki Car. They signaled to stop but the driver ignored the signal and accelerated the car, which was chased by the Customs team. The driver entered in the nearby village, parked the car on the road side and escaped in the crowded area.

The car was taken into the custody. A preliminary search was conducted. During the search of car, 22 bags of Indian gutka were recovered. Therefore the recovered foreign origin banned goods were taken into custody and brought to the Customs Office. The smuggled goods along with vehicle had been seized under the law. Notice was issued to the unknown persons and a copy thereof was pasted on the Notice Board of Customs Office.

However, the Adjudication officer maintained that nothing has been placed on record to the effect that the seized vehicle has been found carrying of smuggled goods in false cavities or being used exclusively or wholly for transportation of offending goods. Therefore, the request of claimant of the vehicle was allowed to redeem the vehicle against payment of redemption fine.

The department being aggrieved with the order filed an appeal before the tribunal.

The Tribunal found that there was no evidence to prove that the vehicle was used in smuggling activities or that it had secret cavities to conceal smuggled goods. The Collectorate failed to produce any fresh evidence to justify interference with the impugned orders.

In a separate case, the Tribunal waived the penalty imposed on the owner of the vehicle, who had rented it out to someone who allegedly used it for smuggling. The owner claimed he was unaware of the renter's intentions and was only trying to earn a living.

The Tribunal, exercising its powers, waived the penalty in full, citing justice and fair play. The decision highlights the importance of considering the circumstances of each case and the need for fairness in the application of Customs laws.

Copyright Business Recorder, 2025