KARACHI: The Customs Appellate Tribunal bench-II disposed of an instant appeal under section 194-A of the Customs Act 1969, directed against Order-in-Original No. 93 of 2014-2015, dated 02-01-2015 passed by the Collector of Customs (Adjudication-II), Karachi by upholding the decision of Collector of Customs Adjudication-I Karachi on a contravention case prepared by Directorate of Customs Intelligence& Investigation-FBR, Karachi region against M/s. Packages Ltd.
The Appellate Tribunal also ordered M/s. Packages Ltd. to pay the evaded duty amounting to the tune of Rs. 12,584,835/-in government treasury under section 32(2) of the Customs Act 1969.
Customs I&I, Investigation Officer Saud ul Hassan appeared for the respondents and defended the case.
It may be mentioned here that the Directorate of Customs Intelligence& Investigation-FBR, Karachi region had received information that a leading packaging industry of the country was involved in import and clearance of water based varnishes (PCT Heading 3209.1010) used for coating of packages, in the garb of “Acrylic Polymer in primary form” (PCT Heading3906.9090). The rate of duty under Heading 3906.1010 was 20% whereas rate of Customs duty under Heading 3906.9090 was 10%.In this way the duties were evaded by the above mentioned industries.
Earlier the Collector Customs Adjudication-I I disposed of the matter in favour of the Directorate General I&I and ordered M/s. Packages Ltd (NTN-711438) to deposit the evaded duties and taxes stated above of Rs. 12,584,835/- since the charges enumerated in the show cause notice stand established.
Collector Adjudication also imposed a penalty of Rs. 500,000on M/s. Packages Ltd(NTN-711438) P.O Amer Sidhu, Shahra-e- Roomi, Lahore under clause 14 of section 156(I) of Customs Act 1969.
However, the Customs Appellate Tribunal in its order stated that Nonetheless, since the D/R appearing on Behalf of the respondent could not point out any evidence of mens-rca against the appellant, we also assume that the mis-declaration would not have necessarily emanated from any mal-intent on the part of appellant- who generally has good business reputation. The penalty of Rs. 500,000/- imposed on the appellant/importer is therefore hereby remitted. The impugned order is modified to this extent only, while the rest of order is upheld. Appeal is disposed of in above terms, the order concluded.
