The Federal Board of Revenue (FBR) has been advised by the Ministry of Law and Justice and the office of the Attorney General that it is legally competent to challenge orders issued by the President of Pakistan in superior courts.
According to the legal opinion obtained by the FBR, the President acts in a quasi-judicial capacity when deciding representations against orders of the Federal Tax Ombudsman (FTO). This allows such presidential decisions to be contested before the High Court on valid and reasonable grounds.
The advisory follows a case involving M/S MH Traders, which had imported goods declared as PU leather under a concessionary regime meant for football manufacturing under SRO 492(1)/2009. Subsequent tests by customs laboratories revealed that the goods were printed polyester fabric, while the importer was also not registered as a manufacturer, a key condition for the concession.
The Federal Tax Ombudsman had initially dismissed the complaint on jurisdictional grounds. However, the importer later approached the President, whose office overturned the FTO’s decision and granted relief.
The customs department subsequently challenged the presidential order in the Sindh High Court, which issued a stay. The case remains sub judice before both the Sindh High Court and the Customs Appellate Tribunal, with the FBR seeking that the implementation of the presidential order remain suspended until a final court ruling is issued.
