Federal Tax Ombudsman (FTO), while canceling an illegal auction of an imported vehicle, reprimanded customs officials of Karachi, who miserably failed to protect the rights of citizens under the Constitution.
In this regard, the Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to cancel an illegal auction of an imported vehicle by customs Karachi and hand it over to the actual importer due to mal-administration committed by customs officials of the Collectorate of Customs Appraisement (West), Karachi.
According to the directive of the FTO to the FBR, Collector, Collectorate of Customs Appraisement (West), Karachi would cancel the subject auction proceedings, recover the vehicle,e and hand it over to the complainant, in terms of the Ministry of Commerce’s Import Authorization.
Details of the case revealed that the complaint was filed against the Collectorate of Customs Appraisement (West), Karachi, under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance) regarding the cancellation of auction and recovery of the vehicle.
The complainant imported used vehicle was handed over to the shipping line in the last week of December in Japan but due to unforeseen technical reasons, the vessel’s departure was delayed and arrived on 15.02.2024, which constitutes a minor deviation from the condition as specified in para 3(2) of Appendix-E of Import Policy Order (IPO), 2016.
The Complainant applied for condonation from the Ministry of Commerce, which is in process and after calling for a report from FBR will be presented in the meeting chaired by the Ministry of Commerce, to condone delay by exercising powers granted under para 20 of IPO, 2016. However, the Customs Department auctioned the vehicle without following the pre-requisite procedure as specified in the Customs Act, 1969 (the Act) against a very low price compared to its market value. The complainant prayed that the directions be issued to the department to cancel the auction and recover the vehicle.
FTO found that there was a minor deviation as per the conditions specified in para 3(2) of Appendix-E of Import Policy Order in vogue.
The Complainant had duly applied to the Ministry of Commerce for Condonation of the above-referred minor deviation, and where the matter was still under examination. It would be further important to note that this issue of condonation in the subject case was well in the notice of the department as the department in their comments has admitted that in the case of three (03) such other vehicles, the Ministry of Commerce had already communicated condonation to the department while the case of this vehicle was still pending for decision.
It is further established from the record that the department without waiting for the decision of the Ministry of Commerce, auctioned the subject vehicle on 11.06.2024 at 80 percent of the Reserved Price in utmost haste by taking refuge under Section 82 of the Customs Act, 1969 and Customs Rules, 2001 without appreciating the fact that it was a genuine hardship case and still under consideration at the Ministry of Commerce.
Subsequently, the Ministry of Commerce, vide its Import Authorization dated 12.08.2024, has allowed the release of the subject vehicle by exercising powers conferred under para-20 of the IPO, 2022. The department in this case has miserably failed to protect the rights of citizens as envisaged under Article 24(1) of the Constitution of Pakistan: No person shall be compulsorily deprived of his property save by law”.
The maladministration by the customs department is evident in terms of the FTO Ordinance, 2000, FTO order added.
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Who will stand responsible? No one. Or maximum a warning letter to silence the media.
Excellent decision of the honourable FTO. May he live long.