KARACHI: Customs Appraisement West has moved Sindh High Court against the Customs Appellate Tribunal’s order in a misdeclaration case of auto parts import.
The Collectorate raised certain questions of law in the case pertaining to M/s Chief Auto Center which imported auto parts in the garb of machinery parts to evade Rs59 million tax. The company imported three consignments declaring to contain cylinders liner and pistons from Japan and processed the GDs.
The GDs were selected for checking and it was found the GDs were assessed under declared PCT 8409.9999. However, an information was received that the importer M/s Chief Auto Center, Lahore is importing auto engines’ parts under the garb of machinery parts and making attempt to inflict loss of revenue to the exchequer to the extent of Rs59 million.
The consignments were reexamined and found to contain the auto engines’ parts correctly classifiable under PCT 8409.9910 chargeable to customs duty 35 percent instead of declared PCT 8409.9999 chargeable to custom duty 11 percent.
Subsequently, the consignments were detained and a show cause notice was served on the importer. The Collector Adjudication vide order-in-original and without giving due consideration to the established facts and circumstances and rather passed the judgment as per dictates of the importer. Collector Adjudication observed that the imported goods are subject to payment of duty and taxes as per PCT 8409.9999 as machinery parts and there is no charge of misdeclaration.
Dissatisfied with the order-in-original, Appraisement West has approached Sindh High Court challenging the adjudication order. It is submitted that the M/s Chief Auto Center wilfully misdeclared the classification to evade national revenue.
