ISLAMABAD: The Federal Tax Ombudsman (FTO) has directed Pakistan Customs to return 170 tolas of gold unlawfully held for over 27 years, following a protracted legal battle that saw judgments in favor of the complainant from all tiers of Pakistan’s judicial system, including the Supreme Court.
The case dates back to January 5, 1997, when the complainant, Syed Rehman, arrived at Peshawar Airport from Dubai and voluntarily presented himself for inspection. Despite no contraband being found in his luggage, Customs officials seized 17 slabs of gold—each weighing 10 tolas—from his waistcoat. He was arrested, and an FIR was registered, leading to the confiscation of the gold.
The gold remained in the custody of Pakistan Customs despite a series of appellate decisions favoring the complainant. The Customs Appellate Tribunal had ordered in 2004 the release of the confiscated gold upon payment of duty, taxes, and a 10% redemption fine. This decision was upheld by the Peshawar High Court in 2012 and the Supreme Court of Pakistan in 2013. Even a review petition filed by Customs was dismissed by the apex court in December 2013.
However, Customs authorities repeatedly failed to implement the court orders, prompting the complainant to seek relief from the FTO. In its detailed order, the FTO criticized Pakistan Customs’ conduct as a clear case of maladministration and non-compliance, particularly highlighting their refusal to return the gold despite unequivocal legal directives.
The FTO used the term “maladministration” under Section 2(3) of its Ordinance to describe Customs’ behavior, citing an 11-year delay in executing the Supreme Court’s final order. The FTO emphasized that Article 189 of the Constitution mandates unconditional compliance with Supreme Court decisions.
Customs officials defended their inaction by citing record transfer issues and administrative confusion due to departmental restructuring. However, the FTO rejected these justifications and directed the Collectorate of Customs (Appraisement) Peshawar to implement the tribunal’s judgment from January 2004 in “letter and spirit” and report compliance promptly.
The word “gold” has become symbolic in this case—not just of physical wealth, but of a justice system tested by bureaucratic inertia. As this gold saga nears its conclusion, the FTO’s decisive intervention may restore public faith in tax administration accountability.
The FTO’s order marks the fifth and final time a judicial or quasi-judicial forum has directed Pakistan Customs to release the long-held gold.
