KARACHI: A two-member bench of the Sindh High Court (SHC) comprising Justice SHC Irfan Saadat Khan and Justice Mehmood Ahmed Khan decided constitutional petitions and special customs reference applications filed by the Collector of Customs Enforcement Customs House, Karachi against M/s Hassan Trading Company and Ali Oil Trading Co and directed customs authorities to comply with the judgment of the Tribunal in letter and spirit.
According to the verdict, court observed that “ that on 14.4.2022 only the Question No.1 was admitted for regular hearing, whereas Questions No.2 & 3 were not pressed by the learned counsel appearing for the Department.
The two petitions bearing C.P. Nos.D-1366 & 1367 of 2022 were filed on behalf of the Respondents in the SCRA, who is the petitioners in the above referred petitions, on the ground that since the Department is not implementing the order of the CAT therefore, they may be directed to do the needful in accordance with law.
As the point raised in the two SCRAs and the petitions are same hence these are being heard together and disposed of by this common judgment
Briefly stated the facts of the case are that the Applicant imported White Spirit via vessel MT MORIOKA. When the said vessel arrived at Karachi port the agent furnished its manifest to the Customs Authorities declaring that the cargo was loaded from a port of Iraq.
However, when the Customs Authorities inquired they found out that the goods were not White Spirit but Xylene and the same were loaded from Iran. It is the case of the department that when the Captain of the vessel was confronted with the same he admitted that there was a mis-declaration and the cargo was loaded from Iran and not Iraq.
Thereafter, proceedings were initiated by the Department under Section 43, 45, 72A and 75, 156(1), (39A) and (42) of the Customs Act, 1969 (the Act) read with sub-clause (e), (f), (g), (h) and (k) of Rule 665 of Customs Rules, 2001. Necessary proceedings were then carried out by the Customs Authorities and thereafter order-in-original (O-N-O) bearing No.02/2021-22 dated 13.09.2021 was passed, whereby the goods were ordered to be confiscated and penalty of Rs.2,00,000/- was imposed under the provisions of Section 156 of the Customs Act.
A penalty of Rs.50,000/- was also imposed on the agent. Being aggrieved with the said orders, appeals were preferred before the CAT, who vide its order dated 21.12.2021, allowed the appeals and set aside the O-N-O with regard to confiscation of the goods and directed unconditional release of the same, upon payment of leviable duties and taxes and also directed waiver of the demurrage. It is against this order of the CAT that the present SCRAs were filed.
Hence, in view of the above referred uncontroverted facts, we have find the action of the department to be not in accordance with law. We therefore, answer the question raised in the instant SCRAs in negative i.e. against the department and in favour of the Respondents. The customs authorities are directed to comply with the judgment of the Tribunal in letter and spirit.
Instant petitions also stands disposed of. Above are the reasons for our short order dated 28.04.2022 by which instant SCRAs and petitions were disposed of along with the listed and pending applications”.
