SC upholds confiscation of truck used for smuggling

ISLAMABAD, Nov 06 (APP):The Supreme Court has upheld the permanent confiscation of a Hino Mazda truck used for transporting smuggled goods, ruling that the vehicle cannot be released merely on payment of a fine when such relief is barred under Federal Board of Revenue (FBR) restrictions. A three-member bench headed by Chief Justice Yahya Afridi, comprising Justice Muhammad Shafi Siddiqui and Justice Mian Gul Hassan Aurangzeb, accepted an appeal by Customs authorities and set aside the decisions of the Peshawar High Court and Customs Appellate Tribunal. According to the three-page order authored by Justice Muhammad Shafi Siddiqui, the truck (registration No. TKK-500) was intercepted at JCP Tunnel in Kohat on February 16, 2025, and foreign-made spare parts were recovered from it. The driver failed to produce documents establishing the legal import of the goods. Customs authorities confiscated the goods under Section 168 and the vehicle under Section 157(2) of the Customs Act, 1969. The confiscation was upheld by the competent authority and Collector Customs (Appeals). However, the Customs Appellate Tribunal subsequently allowed release of the truck against payment of a fine equivalent to 40 per cent of its assessed value. The Peshawar High Court also dismissed the Customs authorities' challenge to that decision. The Supreme Court observed that the option of releasing confiscated goods or vehicles against a fine under Section 181 of the Customs Act was subject to restrictions imposed by the FBR. Under its notification dated June 13, 2009, certain vehicles used for transporting smuggled goods were not eligible for release against a fine. The court held that the subsequent amendments to the notification did not remove the restriction and the tribunal had no authority to order the truck's release contrary to the applicable FBR notification. It observed that since the vehicle was seized on February 16, 2025, after the FBR notification of October 3, 2024, its release had to be determined in accordance with the applicable restrictions, regardless of the claim that it was being used for carrying goods on hire. The Supreme Court converted the Customs authorities' petition into an appeal, allowed it and restored the order for permanent confiscation of the truck. The pending application for interim relief was also disposed of.