KARACHI: A special customs court in Karachi acquitted two men accused of fiscal fraud and mis-declaration, ruling that Pakistan’s Directorate of Intelligence and Investigation-Customs lacked legal authority to initiate the case, according to a court order seen by Reuters.
Special Judge Rahmatullah Mooro accepted an application under Section 265-K of the Criminal Procedure Code, dismissing charges against Shahid Huda and Muhammad Manaf in a case stemming from FIR No. 55/DC//R&A/Food Links Int/2023. The case involved alleged violations of the Customs Act, 1969, and the Import Policy Order.
The court found that the Directorate acted ultra vires—beyond its legal powers—by initiating proceedings under Sections 32 and 32A of the Customs Act, citing statutory instruments SRO 486(I)/2007 and SRO 1814(I)/2024. The judge referenced a 2022 Supreme Court ruling that held jurisdiction as a mandatory prerequisite for lawful prosecution.
“The investigation was carried out by authorities having no powers, being without lawful authority,” the order stated.
Legal counsel for the accused, Franklin Law Associates, argued that the goods in question had already been assessed, cleared, and released by customs, rendering the transactions closed and outside the Directorate’s remit. The firm also cited a Sindh High Court precedent limiting tax recovery powers to the Commissioner Inland Revenue, and presented a 2024 Customs Appellate Tribunal ruling that had already dismissed the allegations in parallel civil proceedings.
The court’s decision effectively bars further criminal prosecution on the same facts and underscores the importance of jurisdictional compliance by investigative agencies.