KARACHI: A two-member bench of The Sindh High Court has dismissed several reference applications filed by The Collector of Customs, Through Additional Collector of Customs (Law), Model Customs Collectorate of Appraisement (West), Custom House, Karachi against M/s Faisal Associates and others. Detailed verdict has been released dated March 26, 2021.
Court observed in its judgment that “these Reference Applications have been filed impugning a common Order dated 15.07.2017 passed by the Customs Appellate Tribunal in Customs Appeal No. K-1474 of 2015 to K-1482 of 2015, and Appeals filed by the Department bearing Customs Appeal Nos.K-1486 of 2015 to K-1494 of 2015.
Learned Counsel for the Applicant has read out the relevant part of the impugned order as well as the order of the Collector (Appeals) and submits that the refund(s) claimed by the Respondents were time barred in terms of Section 33 of the Customs Act, 1969 and therefore, the Tribunal was not justified in setting aside Para 7 of the order passed by the Collector Appeals. He has prayed for setting aside the impugned order.
We have heard the learned Counsel for the Applicant and perused the record. For reasons to follow we are not inclined even to issue pre-admission notice to the Respondents.
It appears that on allegation of under invoicing pursuant to a raid conducted on the office of an Indenter of paper and paperboard the Respondents were compelled to pay a lump sum of 15% of the alleged short levied amount of customs duty and taxes on the basis of a demand notice.
The Respondents then impugned the same by way of Suit No.472/2003 wherein, the department had withdrawn the demand notices by taking a plea that appropriate Show Cause Notice(s) would be issued.
Thereafter, Show Cause Notices were issued and the proceedings culminated by way of orders in favour of the Respondents by the Tribunal. It is a matter of record that separate orders were passed by the Tribunal from 2007 to 2010.
The Respondents then approached the Department for refund in June 2011 and such refund applications were dismissed as being time barred which order was maintained by the Collector (Appeals) on the SCRA No. 42 to 59 of 2018 Page 3 of 6 ground that the claims were time barred.
However, in the same order the Collector (Appeals) also gave a finding that insofar as the claim of refund on merits is concerned, the Respondents were entitled for it. Both parties further appealed and learned Tribunal has been pleased to dismiss the Appeals of the Department to the extent of Para 6 thereon and has allowed the Appeals of the Respondents.
Therefore, in the given facts and circumstances of the case in hand, we are of the view that no exception can be drawn to the order of the Tribunal.
Accordingly, all Questions are answered against the Applicant and in favour of the Respondents and order of the Tribunal is maintained. All Reference Applications are dismissed in limine. Let copy of this order be sent to Appellate Tribunal Customs in terms of sub-section (5) of Section 196 of Customs Act, 1969. Office is directed to place copy of this order in all above connected SCRAs’.
