A.    Background

1. This refers to the related Important CDQCs in trail, blue, italic and double Line (a) 285 of 2.9.25 about Dismissal of Inspector Customs is considered as Major Penalty

2. We also refer to several Other related QC including (a) 265 of 10.10.24 about Crackdown against 4 items' Smuggling continues (b) 261 of 30.7.24 about Crackdown against Smuggling & KCV about Fertilizer (c) TLQC 2744 of 20.5.24 about Curbing tax evasion, smuggling, counterfeiting & illegal trade of Trillions (d) CDQC 175 of 3.11.21 about Alleged smuggled vehicle & Tampered Chassis and SHC held Bonafide

B.   Updated Commentary

1. Further to KQU 3715 of 23.12.25, being an important matter, we would inform you about Conversion of Penalty of Mr. Khalid Samad, Inspector Customs, Collectorate of Customs Enforcement, Islamabad (Attachment 299.1) in the ensuing paragraph, in Italic with emphasis in bold & Underline, heading ours for quick reading.

2. Whereas, upon finalization of Disciplinary proceedings under the Civil Servants (Efficiency & Discipline Rules), 2020 on the charges of "Inefficiency" and "Misconduct", major penalty of "Reduction to a lower post and pay scale from substantive or regular post i.e. UDC (BS-13) for a period of three years" was imposed under Rule-4(3)(b) of the rules ibid, upon Mr. Khalid Samad, the then Inspector Customs, now UDC (BS-13), Collectorate of Customs Enforcement, Islamabad vide Board's Notification No.1901-C-IV/2025 dated 20.8.25 (Attachment 299.2).

3. Whereas, being aggrieved against the aforesaid awarded major penalty by the Authority, the above-named official has filed a departmental appeal under Rule-4 of the Civil Servants (Appeals) Rules, 1977 to the Secretary Revenue Division/Appellate Authority. The Appellate Authority provided an opportunity of personal hearing to the appellant on 26.11.25.

4. The accused officer and the Departmental Representative (DR), Mr. Abuhuraria Khan, Assistant Collector, Collectorate of Customs Enforcement, Islamabad, appeared before the Appellate Authority on 26.11.25. During the course of the hearing, the accused contended that, in compliance with the directions of the Deputy Collector to apprehend either the trucks or the offenders, he proceeded to intercept the trucks. However, upon interception, he was suddenly surrounded by unknown individuals, and the situation rapidly escalated into a life-threatening law and order scenario. Taking advantage of the ensuing chaos, the smugglers managed to flee from the scene.

5. Whereas, in the light of available record, facts of the case, inquiry report, Show Cause Notice, reply to the Show Cause Notice, verbal submissions made by the appellant, contentions of the DR during the course of personal hearing, the Appellate Authority has observed that the appellant was confronted with an unforeseen and hostile situation. Given the imminent threat to his life and the safety of his team, his immediate priority was to ensure safety and security.

6. Foregoing, the Secretary Revenue Division/ Chairman FBR being the Appellate Authority in this case is of the considered opinion that the penalty of "Reduction to a lower post and pay scale from substantive or regular post i.e. UDC (BS-13) for a period of three years" imposed by the Authority is harsh. Therefore, the Secretary Revenue Division/Chairman, FBR, in his capacity as Appellate Authority, in exercise of powers conferred under Rule-6(c) of the Civil Servants (Appeals) Rules, 1977 has been pleased to convert the “Major penalty of "Reduction to a lower post and pay scale from substantive or regular post i.e. UDC (BS-13) for a period of three years" into minor penalty of " Withholding of an increment for one year without cumulative effect" under Rule 4(2)(b) of Civil Servants (Efficiency and Discipline) Rules, 2020 upon Mr. Khalid Samad, Inspector Customs, Collectorate of Customs Enforcement, Islamabad

7. In the light of Sr.No.7(ii) of FBR's policy "Guidelines for Performance Allowance 2015" circulated (Circular No.1/2015) vide C.No.6(96)S(BIC)/2013-2014, dated 06.03.2015, performance allowance of aforesaid officer, is hereby stopped for six months from the date of award of this penalty and he shall have to appe afresh for restoration of the same under the policy.

C.   Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

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