Major Relief for Citizens With Vehicles Seized in Smuggling Case

The Supreme Court has dismissed a set of appeals filed by the Federal Board of Revenue (FBR), ruling in favor of vehicle owners whose cars were seized on allegations of smuggling.

A three-member bench headed by Chief Justice Yahya Afridi upheld the Peshawar High Court’s 2023 verdict, which had sided with the owners of impounded vehicles.

The court clarified that vehicles purchased through government auctions or from previous owners with verified registration documents carry a presumption of legality.

Customs officials cannot confiscate such vehicles solely due to the absence of original import documents, especially when the five-year statutory period for retaining these records, as per Section 211 of the Customs Act, has expired.

Justice Muhammad Shafi Siddiqui, who authored the verdict, stressed that the burden of proof lies on Customs officials, not the vehicle owners. He added that unless there’s evidence of tampering—such as altered chassis or engine numbers—the vehicles should be considered legally acquired.

The court also highlighted the need for improved coordination between departments to prevent smuggling at the point of registration rather than penalising later buyers. It also called for respect during vehicle searches, especially involving families, suggesting the presence of female officers.

The FBR had filed 23 appeals, but the court rejected them, noting that most of the vehicles were either auctioned or properly registered. The judgment distinguishes between genuine ownership and fraud, granting relief to bona fide buyers while allowing action where tampering is evident.