Customs Appellate Tribunal Decision on Confiscation of 1999 Toyota Hilux Surf Annulled --- Islamabad High Court, Islamabad
Islamabad 28-05-2024: In a recent development, the Customs Reference Application [Customs Reference No. 112 of 2023] challenging the decision of the Customs Appellate Tribunal regarding the confiscation of a 1999 Toyota Hilux Surf has been successful; the decision of Custom Appellate Tribunal dated 17.07.2023, which upheld the confiscation, has been set aside. The Honourable Division Bench of Islamabad High Court comprising of, Mr. Justice Babar Sattar and Ms. Justice Saman Rafat Imtiaz, while deciding the Custom Reference Application observed that according to the facts of the case the vehicle in question, a 1999 Toyota Hilux Surf registered in Jacobabad, was seized on allegations of smuggling and subsequently confiscated under various sections of the Customs Act and Import and Export Trade Control Act. The appellant contested the seizure and confiscation, arguing that the vehicle was legally registered and taxes were duly paid.
The Tribunal's decision was found flawed on several grounds. Firstly, it determined the vehicle to be non-duty paid and smuggled based on the absence of its listing in the PRAL database. However, the Tribunal failed to consider that the vehicle predates the establishment of the PRAL database in 2000, rendering its reliance on PRAL data incorrect. Additionally, the Tribunal overlooked the destruction of records in 2007, which hindered the verification of the appellant's registration documents. Consequently, the conclusion that the vehicle was smuggled was deemed speculative and presumptive.
Moreover, the Tribunal's reliance on unreported judgments of the Islamabad High Court was found flawed, as they were issued without considering precedent cases such as the "Professor Muhammad Khan" case, rendering them non-binding. Furthermore, the Order-in-Original was deemed time-barred, issued beyond the statutory limit, a fact overlooked by the Tribunal.
The Honourable Court relied upon a number of legal precedents, including the Supreme Court ruling in "Collector Customs, Sales Tax and Central Excise Vs. Professor Muhammad Khan", emphasizing that Customs Authorities cannot detain foreign goods without proof of illegal importation. Similarly, the case of "Additional Collector of Customs (Adjudication) at Model Customs Collectorate, Ardara Road, Peshawar Vs. Hidayat Ullah" highlighted that vehicle registration documents substantially meet the burden of proof under Section 187 of the Customs Act.
Consequently, the Customs Reference Application has been allowed, and the impugned judgment of the Customs Appellate Tribunal has been set aside. All questions proposed by the applicant are answered in their favor. The decision underscores the importance of adhering to legal precedents and considering factual circumstances, especially regarding the burden of proof in customs cases. It serves as a reminder for tribunals to meticulously assess evidence and legal principles before reaching conclusions in matters of confiscation and seizure.
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