Islamabad, August 31, 2025 – The Supreme Court of Pakistan has declared that customs proceedings against M/s Commander Agro (Private) Limited were time-barred under the Customs Act, 1969, while overturning a Lahore High Court (LHC) ruling.
A three-member bench, headed by Chief Justice Justice Yahya Afridi and comprising Justice Muhammad Shafi Siddiqui and Justice Miangul Hassan Aurangzeb, allowed the company’s petition and set aside the impugned LHC order. The Court emphasized that time-bound adjudication, as provided under Sections 179(3) and 179(4) of the Customs Act, 1969, is mandatory and non-compliance renders proceedings void.
Key Legal Question
The apex court examined whether the order-in-original had been passed within the statutory timeframe after the issuance of the show-cause notice dated December 5, 2014. Under the law applicable at the time, customs authorities were required to decide the case within 120 days, with an additional 30-day extension permissible under specific conditions. This brought the total maximum timeframe to 150 days.
The bench noted that the prescribed deadline for issuing the order was May 4, 2015. However, records indicated inconsistencies: the order bore two dates – May 19, 2015 (title page) and June 4, 2015 (signature page) – both beyond the legally allowed period.
Invalid Extension and Precedents
The Court further observed that a purported extension request dated May 20, 2015 was also filed after the expiry of the statutory period, making it invalid. It highlighted that time-bar provisions under customs law had previously been adjudged as mandatory in landmark cases, including Collector of Sales Tax, Gujranwala vs. Super Asia Mohammad Din (2017 SCMR 1427) and WAK Limited vs. Collector Central Excise and Sales Tax (2018 SCMR 1474 & 2025 SCMR 1280). The larger bench ruling in WAK Limited (2025 SCMR 1280) reaffirmed that failure to adhere to statutory timelines nullifies proceedings.
Supreme Court’s Decision
Based on its findings, the Supreme Court ruled that the order-in-original had been issued beyond the lawful timeframe, rendering the entire customs proceeding invalid. Consequently, the petition was converted into an appeal, allowed, and the LHC judgment was quashed. The Court also disposed of the related stay application (CMA No. 5968/2025).
Implications for Customs Adjudication
The verdict reinforces the principle that statutory timelines in customs adjudication are not merely procedural but mandatory, ensuring legal certainty for taxpayers and businesses. Legal experts believe the judgment will influence future cases where delayed orders have raised questions of legality and compliance with the Customs Act.