The Supreme Court of Pakistan has ruled that any legally registered vehicle found transporting smuggled or non-duty-paid goods cannot be released upon payment of a fine, as the Federal Board of Revenue’s SRO 499(I)/2009 and its subsequent amendments have abolished this discretion.
The Court overturned the decisions of the Peshawar High Court and the Customs Appellate Tribunal, restoring the complete confiscation of the vehicle and goods.
According to the detailed judgment, authored by Justice Muhammad Shafi Siddiqui in the presence of Chief Justice Yahya Afridi and Justice Miangul Hassan Aurangzeb, once the FBR invokes its authority under Section 181 to prohibit release of such vehicles, customs officers and appellate forums no longer possess the power to allow release against a redemption fine.
The Court noted that following SRO 1619(I)/2024, issued on October 3, 2024, the restrictions have become even stricter. The new SRO completely bars the release of all vehicles used wholly or primarily for transporting smuggled goods.
The judgment recounts that on October 7, 2024, a Bedford truck in Dera Ismail Khan was found carrying foreign-made fabric and used tyres without any lawful import documents.
Although the vehicle and goods were confiscated initially, the Appellate Tribunal ordered its release against a 40 percent redemption fine, a decision later upheld by the Peshawar High Court.
The Supreme Court held that both forums misinterpreted the applicable legal framework and the enforced SROs.
It clarified that vehicles used in smuggling are “liable to confiscation,” and after the 2009 SRO and its amendments, confiscation has become mandatory rather than discretionary. Claims involving “rented vehicles” or “public transport” also do not qualify for exemption.
The Court stated that the purpose of the law is to curb smuggling by permanently confiscating vehicles repeatedly used in illegal transportation, thus dismantling the operational infrastructure of smuggling networks.