Pakistan Case Law
1983 SCMR 522

MESSRS VULCAN COMPANY LTD. vs GOVERNMENT OF PAKISTAN AND Other,

⭐ Prefer in Google
Citation1983 SCMR 522
CourtSupreme Court of Pakistan
Case No.Criminal Petition for Special Leave to Appeal No. 941/1982 W. P. No.
Date1983-02-06
Judge(s)Muhammad Afzal Zullah and Shaffiur Rahman
Authored byMuhammad Afzal Zullah
ResultPetition dismissed
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

The petitioner sought leave to appeal against the judgment of the Lahore High Court dismissing its constitutional petition regarding the levy of customs duty and sales taxes on a Mercedes Benz car in its possession, which had been smuggled into Pakistan in contravention of import and custom laws. Although the petitioner was exonerated from the actual act of smuggling, the High Court held that the acquisition and possession of the vehicle created a liability to pay the duties and taxes if the owner wished to retain the goods. The Supreme Court examined the contentions regarding the interpretation of section 156(11) of the Customs Act, holding that the statutory language is comprehensive and applies to the circumstances of the case, rejecting the restrictive interpretation proposed by the petitioner. Consequently, the Supreme Court affirmed the High Court's view that the incidence of customs duty and sales tax falls on imported goods and the current owner seeking retention is liable, and therefore dismissed the petition for leave to appeal.

Questions settled in this judgment
  • Whether a person exonerated of actual smuggling is liable to pay customs duty and sales tax on a smuggled vehicle found in their possession if they wish to retain it?
  • Does section 156(11) of the Customs Act 1969 apply only to goods imported with the intention of re-exporting them?
Laws & provisions referred
  • Section 156(11), Customs Act 1969
  • Section 167, Sea Customs Act
customs dutysales taxsmuggled vehiclepossession of smuggled goodsconstitutional petitionleave to appeal

ORDER

MUHAMMAD AFZAL ZULLAH, J.-Leave to appeal has been sought from judgment dated 3-10-1982 of the Lahore High Court ; whereby a con--stitutional petition arising out of a case under the Customs Act, 1969, was dismissed.

2. Petitioner's challenge was to the levy of customs duty and Sales taxes on a Mercedes Benz car in its possession which had been smuggled into Pakistan in contravention of the relevant Import and Custom Law. Although it was exonerated of the actual act of smuggling, yet acquisition possession by it of the car was held to have created the liability.

3. It has been held by the High Court that in the circumstances like those in the present case incidence of custom duty and sales tax falls on goods imported; and, the person who is for the time being the owner, is liable to pay them if he wishes to retain them.

4. Learned counsel in seeking leave to appeal has contended that section 156(11) of the Customs Act inter alia relied upon by the Custom authorities is not attracted because according to him it applies only to those goods which are imported with the intention of re-exporting them. We do not agree with him. The language used in the provision is comprehensive enough to apply to the present case. The case decided by this Court on questions relatable to section 167 of the Sea Customs Act and cited by the learned counsel are of no help to the petitioner.

6. There is no merit in this petition and the same is accordingly dismissed.

Cited by 4 cases

For educational and research use only — not legal advice. Verify against the official report before relying on it. See our Disclaimer.