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Business Recorder

Diesel seizure case: Appellate forum rejects Customs dept's plea

LAHORE: A higher appellate forum has rejected a special reference application of the Customs department on the ground that the department has failed to establish a law of question against the facts stood determined at the adjudication level. According to details, the Customs officials had intercepted a vehicle carrying High Speed Diesel (HSD) and confiscated it as smuggled goods and issued a show cause notice. The owner of the goods challenged the show cause notice on the ground that the confiscated goods are not smuggled one. Instead, he insisted that he was an authorized dealer of a local Oil Marketing Company (OMC). He also produced relevant documents regarding the purchase of HSD-in-question. Besides, he brought on record verification letter from the concerned OMC whereby it was confirmed that he was their authorized dealer. However, the departmental adjudicating authority set aside show-cause notice on the plea of the owner of the goods that he was dealing in the HSD as authorized dealer of an OMC. The adjudicating authority also preferred to release the confiscated goods. This decision on the part of the adjudicating authority irked the department and it decided to oppose at the appellate forums. Accordingly, the department filed an appeal before the Customs Appellate Tribunal and maintained that the relevant laws clearly desire that such goods should be outright confiscated, as only OMCs are authorized to sell such goods and even OMCs are not allowed to sell such goods except the industrial consumers and the construction companies. The department further pointed out that if any person without lawful excuse, acquires possession of or is in any way concerned in carrying, harbouring, keeping or if there may be reasonable suspicion that they are smuggled goods, the proof of such act shall be on the person that he is not involved in such activity. The higher appellate forum also sought confirmation from the OMC which confirmed the same which was not borne uncontroverted. Therefore, the higher appellate forum refused to interfere in the matter while declaring the reference application as misconceived, therefore, dismissed. Copyright Business Recorder, 2025