KARACHI: Customs Appellate Tribunal Bench-III directed the Customs Department to restore applicant’s export oriented unit (EOU) licence from the date of its suspension and allow him to start his production and export in terms of EOU Rules of 2008 on an appeal filed by M/s Lintaz Industries.
A two-member bench, headed by Justice (R) Malik Manzoor Hussain, Chairman/Member Judicial and Zulfiqar A. Kazmi, Member/Technical-I (Karachi) was hearing the appeal.
Earlier, counsel for the applicant stated in his customs appeal that it was granted that licence on 30/10/2010 for operating an export oriented unit under SRO 327(1)/2008 dated 29/03/2008 which authorized the applicant to import plant, machinery, equipment and apparatus including capital goods will be used solely within the limits of the EOU besides importation of certain raw material via dyes, pigments, chemicals, yarn, fabrics, threads, garments and so on.
He argued that applicant imported 12 consignments of machinery/spares and 59 consignments of raw materials under the said rules, however Tax Department alleged that he imported said consignments without payment of customs duty therefore a show cause notice was issued to the applicant and export oriented unit licence was suspended by the tax authority. Respondent also issued a notice for recovery of Rs66milluion against the import of machinery and raw materials.
After hearing both sides’ arguments, abovementioned bench announced the judgment and observed that “the appeal is found to have its merits and hence the same is hereby allowed and respondents are directed to restore applicant’s (EOU) export oriented unit licence from the date of its suspension 31/08/2012, and allow him to start his production and export in terms of EOU Rules of 2008. Court also set aside the impugned order of the Collector of Customs Adjudication-II Karachi.
Citing to Collector of Customs Adjudication-II Karachi, Collector of Customs Model Customs Collectorate of (Export-PMBQ) and Collector of Customs Model Customs Collectorate (export) Karachi as respondents, importer pleaded with the tribunal for restoration of its export oriented unit licence seized by of Customs Adjudication-II, Karachi.
