IHC declares vehicles amnesty scheme null and void
ISLAMABAD: The Islamabad High Court (IHC) here on Wednesday declared null and void the amnesty scheme that the former PPP government had introduced by giving concession of duties and taxes on illegally-imported smuggled/ seized vehicles through an SRO 172(I)/2013 dated March 5, 2013.
Justice Shaukat Aziz Siddiqui directed the Federal Board of Revenue (FBR) to seize all such vehicles and auction them. As per some reports, around 50,000 vehicles have been given tax and duties concession after the introduction of this policy.
While hearing the case, the IHC judge observed that the said amnesty scheme is a discrimination against those persons who legally purchased the vehicles and paid full taxes and duties.
The petitioner, Khawaja Saad Saleem, through his counsel Syed Javed Akbar, told the court that the SRO is in contravention of the SRO 499(I)2009 dated June 13, 2009. In this SRO, it was said that ‘no option shall be given to pay fine in lieu of confiscation in respect of….. “(a) smuggled goods falling under clause (s) of section 2 of the Customs Act 1969”.
Under the amnesty scheme, the federal government had allowed the release of smuggled/seized non-duty paid vehicles on payment of redemption fine along with duty and taxes. petitioner contended before the court that it was quite strange to observe that the SRO 172(I)/2013 dated March 05, 2013 does not allow the same concession to the legally imported vehicles.
Through the amnesty scheme government introduced the policy that “smuggled or non-duty paid motor vehicles, having non-tampered engine or chassis numbers, which have been seized or voluntarily presented to customs on or before the 31st March 2013 shall be allowed release on payment of redemption fine at the rate of 1% depreciation from the month of their manufacturing up to 72 % maximum depreciation.
The petitioner told the court that the said amnesty scheme was greatly misused by the persons and the national exchequer sustained loss of billions of rupees.
The petitioner further contended before the court that the SRO has created a black market of vehicles and there is an infringement upon the fundamental rights of the general public. The petitioner had prayed to the court to declare the amnesty scheme as ultra vires and illegal.
Earlier, Federal Board of Revenue (FBR) made submission before the IHC which said that under the ‘amnesty scheme’ FBR has registered 50,901 vehicles with a collection of around Rs15.837 billion.
The FBR also submitted before the court that the Supreme Court of Pakistan, in 2010, in the missing persons’ case, while taking up the issue of law and order situation in the province of Balochistan, also examined the issue of smuggled vehicles plying in the province.
During hearings on May 21, 2012 and June 20, 2012, it was observed that these smuggled vehicles pose a threat to law and order situation in the country because of their use in crime, owing to availability at cheaper price and with no apprehension of being traced due to non registration. In view of this SC had directed Customs authorities that no smuggled vehicles should ply in Balochistan province. Moreover, the Supreme Appellate Court, Gilgit-Baltistan through another judgement dated November 08, 2010 also directed to regularise non-duty paid vehicles plying in Gilgit-Baltistan.
The FBR apprised the court that the field formations of the FBR, with their limited material and human resources allocated to anti-smuggling activities, have been making concerted efforts to seize non-duty paid/smuggled vehicles but the desired results could not be achieved because of magnitude of the problem. As such, the issue could not be addressed through enforcement above. An amnesty scheme had, therefore, been launched by the Federal Government vide Notification No SRO 172(1)/2013 dated March 05, 2012 after approval by the Minister for Finance & Revenue. The scheme allowed release of smuggled vehicles, if seized or voluntarily presented to the Customs on or before April 06, 2013, on payment of duty & taxes along with redemption fine @ I% of total payable duty & taxes. FBR further told the court that the amnesty scheme remained valid from March 05, 2013 till April 06, 2013.
The FBR contended before the court that any interest group never engineered the amnesty scheme. In fact the scheme was in line with the observations of the apex Court.
The FBR further contended that the SRO 172(1)12013, introducing amnesty scheme for smuggled/seized vehicles, draws force from relevant provisions of law, the scheme was approved by the finance minister. It is incorrect that the amnesty scheme has promoted the black market. On the contrary, it has legitimised/ regularised 50,901vehicles. FBR had prayed to the IHC to dismiss the petition.
ISLAMABAD: The Islamabad High Court (IHC) here on Wednesday declared null and void the amnesty scheme that the former PPP government had introduced by giving concession of duties and taxes on illegally-imported smuggled/ seized vehicles through an SRO 172(I)/2013 dated March 5, 2013.
Justice Shaukat Aziz Siddiqui directed the Federal Board of Revenue (FBR) to seize all such vehicles and auction them. As per some reports, around 50,000 vehicles have been given tax and duties concession after the introduction of this policy.
While hearing the case, the IHC judge observed that the said amnesty scheme is a discrimination against those persons who legally purchased the vehicles and paid full taxes and duties.
The petitioner, Khawaja Saad Saleem, through his counsel Syed Javed Akbar, told the court that the SRO is in contravention of the SRO 499(I)2009 dated June 13, 2009. In this SRO, it was said that ‘no option shall be given to pay fine in lieu of confiscation in respect of….. “(a) smuggled goods falling under clause (s) of section 2 of the Customs Act 1969”.
Under the amnesty scheme, the federal government had allowed the release of smuggled/seized non-duty paid vehicles on payment of redemption fine along with duty and taxes. petitioner contended before the court that it was quite strange to observe that the SRO 172(I)/2013 dated March 05, 2013 does not allow the same concession to the legally imported vehicles.
Through the amnesty scheme government introduced the policy that “smuggled or non-duty paid motor vehicles, having non-tampered engine or chassis numbers, which have been seized or voluntarily presented to customs on or before the 31st March 2013 shall be allowed release on payment of redemption fine at the rate of 1% depreciation from the month of their manufacturing up to 72 % maximum depreciation.
The petitioner told the court that the said amnesty scheme was greatly misused by the persons and the national exchequer sustained loss of billions of rupees.
The petitioner further contended before the court that the SRO has created a black market of vehicles and there is an infringement upon the fundamental rights of the general public. The petitioner had prayed to the court to declare the amnesty scheme as ultra vires and illegal.
Earlier, Federal Board of Revenue (FBR) made submission before the IHC which said that under the ‘amnesty scheme’ FBR has registered 50,901 vehicles with a collection of around Rs15.837 billion.
The FBR also submitted before the court that the Supreme Court of Pakistan, in 2010, in the missing persons’ case, while taking up the issue of law and order situation in the province of Balochistan, also examined the issue of smuggled vehicles plying in the province.
During hearings on May 21, 2012 and June 20, 2012, it was observed that these smuggled vehicles pose a threat to law and order situation in the country because of their use in crime, owing to availability at cheaper price and with no apprehension of being traced due to non registration. In view of this SC had directed Customs authorities that no smuggled vehicles should ply in Balochistan province. Moreover, the Supreme Appellate Court, Gilgit-Baltistan through another judgement dated November 08, 2010 also directed to regularise non-duty paid vehicles plying in Gilgit-Baltistan.
The FBR apprised the court that the field formations of the FBR, with their limited material and human resources allocated to anti-smuggling activities, have been making concerted efforts to seize non-duty paid/smuggled vehicles but the desired results could not be achieved because of magnitude of the problem. As such, the issue could not be addressed through enforcement above. An amnesty scheme had, therefore, been launched by the Federal Government vide Notification No SRO 172(1)/2013 dated March 05, 2012 after approval by the Minister for Finance & Revenue. The scheme allowed release of smuggled vehicles, if seized or voluntarily presented to the Customs on or before April 06, 2013, on payment of duty & taxes along with redemption fine @ I% of total payable duty & taxes. FBR further told the court that the amnesty scheme remained valid from March 05, 2013 till April 06, 2013.
The FBR contended before the court that any interest group never engineered the amnesty scheme. In fact the scheme was in line with the observations of the apex Court.
The FBR further contended that the SRO 172(1)12013, introducing amnesty scheme for smuggled/seized vehicles, draws force from relevant provisions of law, the scheme was approved by the finance minister. It is incorrect that the amnesty scheme has promoted the black market. On the contrary, it has legitimised/ regularised 50,901vehicles. FBR had prayed to the IHC to dismiss the petition.