Lahore High Court Gives Big Relief to Business Owners Facing Raids by Tax Authorities
The Lahore High Court has declared late-night customs raids on tire traders’ shops and warehouses illegal, setting aside the seizure of goods carried out without following mandatory procedures.
A two-member bench comprising Justice Muzammil Akhtar Shabbir and Justice Syed Ahsan Raza Kazmi issued the ruling on a constitutional petition filed by Ataullah and 10 other traders challenging the customs action.
The court held that breaking shop locks and confiscating goods in the owners’ absence amounted to a serious violation of the law. Customs officials cannot remove goods by forcing entry without completing the required legal process.
According to the judgment, the raids violated the Federal Board of Revenue’s standard operating procedures. The court said prior approval from the chief collector or director general is required for nighttime raids.
It also held that actions taken in violation of Section 163 of the Customs Act and Section 103 of the Code of Criminal Procedure would be invalid.
The bench further ruled that a seizure inventory prepared without the owner and independent witnesses present had no legal standing. Traders must also be given an opportunity to produce documents establishing the legality of their goods before action is taken.
Allowing the petition, the court invalidated the disputed seizures and emphasized that customs enforcement must follow the procedures prescribed by law.
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