LAHORE: Customs Appellate Tribunal on Tuesday set aside Order-in-Original (ONO) passed by the collector of customs (Adjudication) Lahore in short payment of duties and taxes in imported potato case.
The case was filed by M/s Usman Traders, M/s Umar & Co, M/s Sajid Enterprises, M/s Thoko Impex and eighteen others against collector of Customs Adjudication Lahore, assistant collector of Customs Adjudication and staff of directorate general audit (customs & petroleum) Lahore.
As per details of case, the petitioners imported potatoes and claimed the benefits of SRO 339(I)/2014 which allows exemption of sales tax for a quantity of 2,00,000 MT. The exemption was allowed till July 31, 2014. Subsequently multiple notifications were issued which enhanced quality of potatoes and extended the period of exemption.
During the intervention director general Audit pointed out that huge amount of sales tax has been evaded by the importers.
After show cause notice matter were adjudicated and penalty of Rs3,00,000 was imposed on importer and Rs50, 000 on clearing agent.
The same case was filed before the Customs Appellate Tribunal on the grounds that Order-in-Original passed without considering facts of case and passed in mechanical fashion so the order is liable to set aside. On the other hand officer of customs department appeared before the court and presented all details about the case.
After hearing the arguments from both sides, Customs Appellate Tribunal accepted the appeal and passed the judgment with remarks that after the notified SRO 776(I) /2018 the appeal has been accepted.
