| Case ID |
178990da-5c73-47d3-b6b2-490b5fdfc7c1 |
| Body |
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| Case Number |
Writ Petition No.112 of 2011 |
| Decision Date |
Mar 24, 2011 |
| Hearing Date |
|
| Decision |
In the case of MESSRS BUSINESS IMPEX THROUGH PROPRIETOR vs DEPUTY DIRECTOR, CUSTOMS INTELLIGENCE AND INVESTIGATION, ISLAMABAD AND 2 OTHERS, the Islamabad High Court, presided over by Justice Riaz Ahmad Khan, delivered a decision on March 24, 2011. The petitioner, who imported mobile phones from China under the Pak-China Free Trade Agreement, faced confiscation of goods by the Customs Authorities due to discrepancies in the model and number of phones. The petitioner filed an appeal under Section 193 of the Customs Act, 1969, which was accepted, resulting in an order to release the goods upon payment of levied duties and taxes. The petitioner complied by paying the required taxes, but before removing the goods from the Customs Warehouse in Islamabad, was informed of additional liabilities of duty and taxes at the Quetta Customs Collectorate. As these liabilities were pending adjudication before the Appellate Tribunal with an existing stay order, the court determined that the release of goods in Islamabad could not be refused. The court ordered the release of the goods, underscoring that the order from the competent forum must be complied with, and the respondents were directed to release the consignment to the petitioner. |
| Summary |
In the landmark case 'MESSRS BUSINESS IMPEX THROUGH PROPRIETOR vs DEPUTY DIRECTOR, CUSTOMS INTELLIGENCE AND INVESTIGATION, ISLAMABAD AND 2 OTHERS', adjudicated by the Islamabad High Court on March 24, 2011, the petitioner, a business entity, faced significant challenges under the Customs Act of 1969 when importing mobile phones from China in alignment with the Pak-China Free Trade Agreement. The core issue arose when Customs Authorities identified discrepancies in the models and quantities of the imported phones, leading to the issuance of a show-cause notice. Subsequently, the consignment was confiscated under Order No.5 of 2010, prompting the petitioner to seek legal redress.
Represented by lawyer Muhammad Naeem Qazi, the petitioner filed an appeal under Section 193 of the Customs Act, which pertains to the review of any order made by a customs official. The Islamabad Collectorate of Customs (Appeals) accepted this appeal, directing the release of the goods upon the payment of the levied duties and taxes. The petitioner complied by promptly paying the required taxes, facilitating the initial release of the goods.
However, complications ensued when, before the physical removal of the goods from the Customs Warehouse in Islamabad, the petitioner was notified of outstanding liabilities concerning duties and taxes at the Quetta Customs Collectorate. These liabilities were already under adjudication before the Customs Appellate Tribunal in Karachi and were subject to a stay order. The petitioner contended that, given the existing stay order and the pending adjudication, the goods in Islamabad should not be withheld.
On the other side, represented by Qazi Ghulam Dastgir, the respondents acknowledged the pending liabilities but argued that alternative remedies under the Customs Act were available to the petitioner, thereby negating the necessity of the writ petition.
Justice Riaz Ahmad Khan, presiding over the case, meticulously examined the legal arguments presented. He referenced the relevant sections of the Customs Act, specifically Sections 168, 179, and 193, as well as Article 199 of the Constitution of Pakistan, which empowers the High Courts to issue writs. The court observed that since the petitioner had fulfilled all financial obligations related to the Islamabad consignment, and the liabilities at Quetta were under a stay order, there was no valid ground to withhold the goods in Islamabad.
Emphasizing the supremacy of orders issued by a competent forum, the court ruled in favor of the petitioner, directing the respondents to release the confiscated goods immediately. This decision underscored the importance of adhering to procedural mandates and ensuring that businesses operating under free trade agreements are not unduly impeded by overlapping regulatory claims.
The case highlights the judiciary's role in balancing regulatory oversight with the facilitation of legitimate trade activities. By enforcing the release of goods upon the fulfillment of statutory requirements, the court reinforced the principles of fair trade and legal compliance. Additionally, the decision serves as a precedent for future cases where importers face dual jurisdictional claims, ensuring that resolved obligations at one administrative level do not adversely affect ongoing transactions at another.
This judgment not only provided relief to the petitioner but also set a clear directive for Customs Authorities to coordinate effectively across different jurisdictions. It emphasizes the need for a streamlined approach in handling trade-related disputes, thereby promoting a more efficient and business-friendly environment. The Islamabad High Court's intervention in this matter exemplifies the judiciary's commitment to upholding contractual and statutory rights, ensuring that legal processes facilitate rather than hinder legitimate commercial activities. |
| Court |
Islamabad High Court
|
| Entities Involved |
MESSRS BUSINESS IMPEX THROUGH PROPRIETOR,
DEPUTY DIRECTOR, CUSTOMS INTELLIGENCE AND INVESTIGATION, ISLAMABAD
|
| Judges |
RIAZ AHMAD KHAN, JUSTICE
|
| Lawyers |
Muhammad Naeem Qazi,
Qazi Ghulam Dastgir
|
| Petitioners |
MESSRS BUSINESS IMPEX THROUGH PROPRIETOR
|
| Respondents |
DEPUTY DIRECTOR, CUSTOMS INTELLIGENCE AND INVESTIGATION, ISLAMABAD AND 2 OTHERS
|
| Citations |
2012 SLD 709,
(2012) 105 TAX 175,
2012 PTCL 551,
2012 PTD 71
|
| Other Citations |
Not available
|
| Laws Involved |
Customs Act, 1969,
Constitution of Pakistan, 1973
|
| Sections |
168,
179,
193,
199
|