LAHORE: The Lahore High Court (LHC) has imposed a fine of Rs 500,000 on the Federal Board of Revenue (FBR) and the concerned Customs station for failing to comply with a prior order, thereby wasting the judicial resources of the court.
The case stemmed from a petition filed by an importer who alleged that the Customs authorities failed to implement an order issued by the Additional Collector of Customs (Adjudication) on April 13, 2025. That order had directed the provisional release of the petitioner’s consignment under Section 81 of the Customs Act, 1969, upon deposit of applicable duties and taxes, along with a secured pay order for the differential amount. It also recommended referring classification disputes to the relevant committee for resolution.
Despite the clear judicial directive, the Customs department failed to act, compelling the petitioner to approach the LHC for enforcement.
During proceedings, FBR and Customs representatives submitted documents indicating that the goods had eventually been released. However, the petitioner’s counsel argued that this release occurred under duress and that the petitioner was forced to pay an unauthorized fine of Rs 1.86 million and an additional penalty of Rs100,000—neither of which had been specified in the original adjudication order.
The LHC found that these additional financial extractions were “beyond the scope” of the original judicial order, labeling them as unlawful and coercive. The court stated that the conduct of the Customs department amounted to extortion and violated the dignity and constitutional rights of the petitioner as a taxpayer and importer.
Moreover, the LHC expressed its displeasure at the unnecessary litigation caused by the inaction of the authorities, emphasizing that it led to a waste of judicial time and resources. “This court was burdened with adjudicating a matter that should have been resolved by the FBR and Customs through compliance with an existing order,” the bench remarked.
In its ruling, the LHC directed the FBR and Customs to reimburse the petitioner within 15 days, including:
1. Rs 1.86 million as a refund for the unlawful fine and Rs 100,000 penalty.
2. Rs 500,000 as compensation for the legal expenses incurred.
3. An additional Rs 500,000 as a cost penalty for the misuse of judicial resources.
The court further stated that if the order is not implemented within the given timeframe, the petitioner would be entitled to initiate execution proceedings.
This judgment underscores the LHC’s commitment to upholding the rule of law and protecting the sanctity of judicial directives, while holding public institutions accountable for actions that burden the judicial system and violate taxpayer rights.
