Islamabad, Apr 20, 2025: The Supreme Court has recently rejected several appeals lodged by the Federal Board of Revenue (FBR), siding with vehicle owners whose cars were seized over suspected smuggling activities.
A three-judge bench, led by Chief Justice Yahya Afridi, upheld the decision made by the Peshawar High Court in 2023, which had ruled in favor of the car owners whose vehicles had been impounded.
In its ruling, the court emphasized that vehicles bought through government auctions or from previous owners with authenticated registration documents are presumed to be legitimate.
Customs authorities are prohibited from seizing such vehicles simply because of missing original import documents, especially when the statutory five-year retention period for these records, as outlined in Section 211 of the Customs Act, has already passed.
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Justice Muhammad Shafi Siddiqui, who penned the ruling, emphasized that the onus of proof rests with the Customs authorities, not the vehicle owners.
He further clarified that unless there is evidence of tampering, such as altered chassis or engine numbers, the vehicles should be treated as legally obtained.
Additionally, the court stressed the importance of improved inter-departmental cooperation to prevent smuggling during the vehicle registration process, rather than penalizing subsequent owners.
It also highlighted the need for respectful searches, particularly in cases involving families, and recommended that female officers be present during such operations.
The FBR had filed a total of 23 appeals, all of which were dismissed by the court.
The judgment makes a clear distinction between legitimate ownership and fraudulent practices, offering relief to genuine buyers while allowing action to be taken when evidence of tampering is found.
