1. ' The sole grievance of the applicant is that the learned Customs, Excise and Sales Tax Appellate Tribunal, Karachi Bench-II was not justified in giving direction in the impugned judgment dated 2nd July, 2005, in Customs Appeal No,K-25/2005(K-2) that the vehicles may be confiscated out rightly.
2. Briefly stated the relevant facts are that the applicants imported 8 units of old and used Mazda Trucks in SKD condition. A show-cause notice was issued intimating that the applicant has contravened the provisions of section 16 of the Customs Act, 1969, read with section 3(1) of the Imports and Exports (Control) Act, 1950. The adjudication proceedings took place and vide Order- in-Original No,317/04, dated 13-11-2004, it was ordered as follows:-- "I therefore, order the confiscation of the impugned goods under clause (9) of section 156(1) of the Customs Act, 1969. The importer is hereby free to redeem confiscated goods on payment of fine equal to 50% (fifty per cent) of the ascertained value of the offending goods under section 181 ibid read with S.R.O. 1374(1)/98, dated 17th December, 1998 (as amended), besides the payment of duties/taxes leviable thereon. I also impose a personal penalty of Rs,10,000 (Rupee ten thousand only) on the importer under clause (9) of section 156 (1) ibid for commission of offence of importation of the impugned goods which are not otherwise permissible to import has also been established."
3. ' The applicant accepted the above decision and did not assail the same before the Tribunal.
4. However, the Department feeling aggrieved preferred appeal and lie Tribunal vide judgment impugned in this Reference Application, modified the order-in-original to the extent of release of goods on payment of redemption fine and directed that the offending goods be confiscated outrightly.
5. ' Mr. Ch. Muhammad Iqbal counsel for the applicant has submitted that the direction given is violative of the law laid down by the Hon'ble Supreme Court in its judgment, dated 20th January, 2004 in Civil Appeal No,899 of 2002, wherein the Hon'ble Supreme Court has held as follows:-- "it is worth-mentioning that learned Deputy Attorney General who had appeared on behalf of the Additional Collector of Customs (Preventive) before the learned High Court had also suggested that the items brought by the respondent could be cleared subject to the payment of duty and taxes as provided under the law. There is no denying the fact that respondent had shifted from Dubai to Pakistan on permanent basis along with his baggage and confiscation of old and used goods appears to be perverse, unjust and oppressive. The confiscation would serve no purpose and the payment of duty would certainly add to the Government revenue which would be in the interest of State but not the concerned officers who use to dispose of such confiscated items at very low price."
6. ' Mr. Haider Iqbal Wahniwal, learned counsel for the respondent No,1 has though supported the impugned order passed by the learned Tribunal but he is not able to advance any reason as to why the dictum laid down by the Hon'ble Supreme Court may not be followed.
7. Respectfully following the dictum laid down by the Hon'ble Supreme Court referred to above, the Reference Application is allowed. The impugned order of Tribunal ordering outright confiscation of goods is hereby set aside and the order-in-original passed by additional collector (Adjudication-I), is hereby restored.
2. The application has been rendered infructuous.