LAHORE: The Customs Appellate Tribunal has ordered a respondent M/s Sadaqat Limited Faisalabad to pay duties and taxes to the Customs Department and mention it in the show cause notice.
Imran Tariq, Member Technical Bench-II, heard the case in details and passed the judgment that, according to the spirit of the case, the respondent is liable to pay duties and taxes on the wastages as apprised of by the collectorate having the jurisdiction.
During the course of the audit for the Financial Year 2011-12, it was observed that licensee shall be allowed to dispose of the wastage in the local market as per provision of the import policy order after the payment of duties and taxes at the appraised value determined by the customs officer.
During the course of audit, it has been pointed out that a considerable quantity of 244,500 kilograms of wastage of viscose embroidery thread and 100 percent polyester fabrics is lying indisposed with licensee M/s Sadaqat Limited.
In view of the above audit observation, the licensee was directed to deposit the government’s dues. The show cause notice was issued for the adjudication proceedings. The adjudication authority directed the licensee to deposit the pointed out recoverable amount into the government’s treasury immediately.
Being aggrieved from the order, a case was filed before the Collector of Customs (Appeals) who passed the Order-In-Original and set aside the impugned order passed by the former authority.
Being aggrieved from the order, the appellant department filed the case before the Customs Appellate Tribunal on the grounds that Order-In-Original is bad in law and against the facts. On the other hand, respondent denied all the allegations.
After hearing the case in details, the Customs Appellate Tribunal has ordered the respondent to pay duties and taxes.
