Federal Tax Ombudsman (FTO) has directed Lahore Customs to return $10,000 to a complainant in currency seizure case.
The Federal Tax Ombudsman (FTO) has directed Lahore Customs to return $10,000 to a complainant in a currency seizure case. This decision came after a long legal battle that lasted almost seven years.
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The case began in 2016 when the customs officials seized $11,700 from the complainant along with 300 Euros and 80 Pounds. The department made a seizure report and sent it to the Adjudicating Authority.
The Adjudicating Authority later confiscated the seized foreign currency exceeding $10,000. The complainant filed an appeal against the order, and the Customs Appellate Tribunal (CAT) ordered the department to release the complainant’s currency. However, the department filed a reference against CAT’s order in the Lahore High Court, which set aside CAT’s order and remanded the case back to the CAT for a fresh decision.
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The CAT again fixed the case for hearing in June 2022, and after hearing both parties, the CAT ordered the release of $10,000 to the complainant. After the CAT’s order, the complainant approached the Customs authorities for the release of the currency. However, the department informed the complainant that the currency had been stolen from the State Warehouse (Valuable), and an FIR had been lodged for misappropriation/theft. The complainant then filed a complaint with the FTO against the Collectors, Collectorate of Customs (Enforcement), Lahore, and Collectorate of Customs (AIIA), Lahore, for delay in paying/returning an amount of $10,000 to the complainant.
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The complaint was referred to the Secretary, Revenue Division, for comments, and the Collector, Collectorate of Customs (AIIA), Lahore, submitted parawise comments. The Collector submitted that the complainant failed to declare the money possessed by him at the Currency Declaration Desk.
Therefore, the Customs staff recovered the currency from the complainant, and the whole of the foreign currency seized from the complainant was not confiscated solely, only the amount exceeding $10,000 was confiscated by the Additional Collector of Customs (Adjudication), Lahore.
The Collector, Collectorate of Customs (Enforcement), Custom House, Lahore, submitted separate parawise comments, stating that the foreign currency as referred to in the subject seizure case had been stolen from the State Warehouse (Valuable). However, as soon as FIA recovered the stolen property/currency, the same would be released to the complainant in the light of CAT’s order as had already been approved by the Departmental Law Committee of this Collectorate on 30.08.2022.
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The FTO has directed Lahore Customs to return $10,000 to the complainant pursuant to CAT’s order dated 22.07.2022. The decision is a significant victory for the complainant, who had to run from pillar to post for almost seven years to get justice. The FTO’s decision is also a reminder to the Customs authorities that they must follow the law and not harass or delay the return of seized currency or goods to the rightful owner.
In conclusion, the FTO’s decision to direct Lahore Customs to return the seized currency is a welcome move that will help restore confidence in the legal system. It is essential that authorities follow due process and return seized property or currency promptly to avoid causing unnecessary hardship to the rightful owner.
