Pakistan’s top court overturns Peshawar High Court and Customs Tribunal rulings, holding that an FBR notification bars the release of vehicles used to transport smuggled goods against a fine.
Islamabad, November 6, 2026: The Supreme Court of Pakistan has upheld the permanent confiscation of a Hino Mazda truck used to transport smuggled goods, ruling that it cannot be released against payment of a fine where Federal Board of Revenue (FBR) restrictions prohibit such relief.
A three-member bench headed by Chief Justice Yahya Afridi, comprising Justice Muhammad Shafi Siddiqui and Justice Mian Gul Hassan Aurangzeb, accepted an appeal filed by Customs authorities and set aside earlier decisions of the Peshawar High Court and Customs Appellate Tribunal.
According to the three-page order authored by Justice Muhammad Shafi Siddiqui, the truck, bearing registration number TKK-500, was intercepted at JCP Tunnel in Kohat on February 16, 2025. Customs officials recovered foreign-made spare parts from the vehicle, while the driver failed to produce documents establishing their lawful import.
Customs authorities confiscated the goods under Section 168 and the vehicle under Section 157(2) of the Customs Act, 1969. The confiscation was subsequently upheld by the competent authority and Collector Customs (Appeals).
However, the Customs Appellate Tribunal later permitted the truck’s release against a fine equivalent to 40 per cent of its assessed value. The Peshawar High Court also dismissed the Customs authorities’ challenge.
Overturning these decisions, the Supreme Court observed that Section 181 of the Customs Act allows the release of confiscated goods or vehicles against a fine, subject to restrictions imposed by the FBR.
The court referred to an FBR notification dated June 13, 2009, which prohibits the release of certain vehicles used for transporting smuggled goods against a fine. Subsequent amendments did not remove the applicable restriction.
It further observed that the vehicle’s seizure on February 16, 2025, after the October 3, 2024 notification, meant its confiscation had to be determined under the applicable restrictions.
The Supreme Court allowed the Customs appeal and restored the order for permanent confiscation of the truck. It also disposed of the pending application for interim relief.