SC rules original design determines car classification

The Supreme Court has ruled that a limousine designed as a five-seater does not become a 10-seater through private modifications that add seats, according to Dawn. Justice Muhammad Shafi Siddiqui, writing a seven-page judgement for a three-judge bench, said later changes can alter a vehicle's layout but not its original design and character. The court set aside a Peshawar High Court order and accepted the challenge brought by the Collector of Customs, Model Customs Collectorate, Peshawar.

The dispute began in 2011 when an importer, Shahid Muhammad, brought a limousine in through the Customs Dry Port, Peshawar. Customs officers found the vehicle was a stretched five-seater and reclassified it after the clearing agent had declared it as a 10-seater, and the importer paid the differential duty. The case then moved through the Federal Tax Ombudsman, several appeal forums and the Customs Appellate Tribunal before the High Court upheld the tribunal's refund order.

Justice Siddiqui held that the extra seats were a later modification, so they alone could not show the vehicle was built to carry 10 or more people. The original design supported the lower heading, and the High Court's approach could not be sustained.