LAHORE: The Lahore High Court has held that under the Custom Act every passenger is bound to make declaration, answer to questions with respect to baggage and produce any such articles carried by him for examination, failure of which may lead to penalties and confiscation of articles.
The court set aside a decision of a custom tribunal in an appeal of a custom collector and remanded the matter of the respondents Muhammad Saleem Badhsh and others for decision afresh who were carrying 1040 foreign origin new/used mobile phones.
The court observed that the tribunal has not determined the factual questions as to whether a declaration under section 139 of the Customs Act was made by the respondents or an opportunity to such a declaration was provided by the customs officials at the time of apprehending the respondents.
The court said that the highest authority for factual determination in a customs duty matters is the tribunal, and as evident, the factual question of true declaration under Section 139 of the Act has not at all been adverted to by the tribunal, which led to erroneous interpretation of section 142 of the Customs Act, the court added.
The court said even in a case of truthful declaration in terms of section 139 of the Customs Act, the option to re-export the goods abroad cannot be claimed as a matter of right.
The court said it is inconceivable that there would be any refund or right to re-export will be forthcoming, if indeed. There is a misdeclaration or no declaration at all on the part of a passenger, with a view to evade payment of duty.
The court observed that the goods squarely fell in the category of smuggled items and will thus trigger the case of invocation of offences, penalties and confiscation.
The court observed that the tribunal has erred in law while passing the impugned order which fails to render any findings qua the factual determination.
The findings of the tribunal while relying upon section 142 of the Act are not sustainable in the eye of law, the court concluded.
Copyright Business Recorder, 2025
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