KARACHI: Passing a punitive action against custom officials who coerced a petitioner to pay fine and penalty beyond the Order In Original passed by Collector of Customs (Adjudication) dated 13.4.25, Justice Shahid Karim of Lahore High Court ordered the department to reimburse fine of rupees 1,856,014, penalty of rupees 100,000 and imposed costs of rupees 500,000 as cost of petition and another 500,000 as cost imposed by the court for failure to implement order of the LHC.

The LHC ordered that the dispute be referred to the Classification Committee  to be settled once for all and to release goods provisionally under section 81 of the Customs Act 1969 after deposit of  leviable duties / taxes and by securing  pay orders of the differential amount of duties and taxes ascertained by the Collectorate.

However instead of implementing the said orders, the depart coerced the petitioner to pay the fine of rupees 1,856,014 and a penalty of rupees 100,000 after which goods were released. As the matter came into the knowledge of the court it passed the above strict order. Never before the department was slapped with a such a heavy cost and decision is likely to serve as a deterrence against non implementation of court orders.

The full text of order is available separately.

LHC ONO 05-05-2025