KARACHI: The Collector of Customs (Adjudication-I) Karachi deciding three identical Show Cause Notices issued against Messer’s Fast Oil (Pvt) Ltd allowed release of three Oil Tankers bearing Registration Number GLTE 1213 (48000), JQ-2234 (52000) and E-1417 (50000) intercepted at Hamdard Choke Point at 1600 hrs on 13.9.2025. The oil tankers had 48,000, 52,000 and 50,000 litres of LDO (Light Diesel Oil) as shown in the respective Delivery Memos issued by Messer’s Enar Petroleum Refining Facility-II Karachi sold to Messer’s Fast Oil Private Limited.
The samples drawn from these oil tankers were sent to PCSIR Laboratory for a chemical analysis leading to the nature of seized goods and as per lab report the samples were found to be High Speed Diesel (HSD) which implies possibility of goods being smuggled and released while misdeclaring the same as LDO aimed at evading leviable duty and taxes.
The seizure and recovery lead to the issuance of Show Cause Notice. The matter was then adjudicated by the Adjudication Collector-I Karachi.
Interestingly it transpired during the hearing that M/s Enar Petroleum Refining Facility–II confirmed the sale of LDO but it failed in providing Form L, a mandatory requirement as per Petroleum Act 1934 and Petroleum Rules 1937 made there under. As a result it became a case of mis-declaration, falsified documents and fictitious consignee.
However the Adjudicator decided in favor of the Fast Oil Private Limited holding that goods cannot be dubbed as smuggled one as these were produced locally hence matter pertains to jurisdiction of ministry of petroleum and action of customs is beyond jurisdiction and no violation of the Customs Act 1969 is involved. The Adjudicator then vacated the Show Cause Notices holding that vehicles seized are liable to be be released.
The seized goods and vehicles are valued at over Six Crores rupees and this scribe has learnt that customs is passing on the buck to the Ministry of Petroleum for an order of release favorable to Messer’s Fast Oil.