Misuse of authority: PHC slaps financial liability on customs officials

ISLAMABAD: The Peshawar High Court has imposed financial liability on customs officials on two separate counts, reinforcing strict accountability for abuse of authority and misuse of constitutional jurisdiction.

In its judgment, the Court imposed exemplary costs of Rs. 500,000 on the Collector Customs, Peshawar, for filing a frivolous constitutional petition challenging the decisions of the Federal Tax Ombudsman (FTO) and the President of Pakistan.

The Court directed that the officers responsible for the unlawful destruction of seized goods shall pay Rs. 500,000 (Rupees Five Hundred Thousand) as compensation to the complainant, over and above the value of the destroyed goods.

The Chairman, Federal Board of Revenue (FBR), has been directed to recover the said amount from the officer concerned for deposit into the public exchequer.

The case arises from the seizure of foreign-origin digital receivers from a shop in Peshawar in 2018 by the Directorate of Intelligence and Investigation (Customs) along with other agencies. The Collector (Adjudication) initially ordered outright confiscation of the goods.

Upon appeal, the Customs Appellate Tribunal (CAT), Peshawar remanded the matter for a speaking order after providing an opportunity of hearing. Following remand, the Collector (Adjudication) ordered unconditional release of the goods after the owner established lawful import through valid Goods Declarations (GDs).

Despite the order attaining finality and no appeal being filed, the complainant was later informed that the goods had already been destroyed.

The complainant approached the Federal Tax Ombudsman seeking either release of the goods in terms of the adjudication order or compensation equivalent to their market value. After investigation, the FTO concluded that the destruction of goods was unlawful, carried out in undue haste, and unjustified, particularly as the items were neither perishable nor unfit for consumption.

The Ombudsman held that the actions constituted maladministration under Section 2(3)(i)(a) & (d) of the FTO Ordinance due to incompetence, inefficiency, administrative excesses, and wrongful application of Section 169(4) of the Customs Act.

The Customs Department’s representation against the FTO’s findings was rejected by the Hon’ble President of Pakistan, thereby upholding the Ombudsman’s decision.

Subsequently, the Collector Customs filed a constitutional petition before the Peshawar High Court. A two-member bench comprising Justice Syed Arshad Ali and Justice Muhammad Faheem Wali dismissed the petition, observing that Article 212 of the Constitution provides a vital constitutional safeguard against abuse of power, reckless disregard of public duties, and wrongful exercise of authority by public officials.

The Court further directed the Chairman, FBR, to constitute a committee to determine the loss suffered by the complainant and ensure timely payment of compensation. It also ordered an inquiry against officials involved in the illegal destruction of goods.

In imposing exemplary costs, the Court observed that the egregious abuse of power and the initiation of frivolous litigation to defend illegality warranted strict consequences.

The judgment significantly strengthens institutional accountability, safeguards citizens’ constitutional rights, and reaffirms the critical role of the Federal Tax Ombudsman in ensuring fair and lawful administration.

Copyright Business Recorder, 2026