KARACHI: The Customs authorities have informed the Sindh High Court (SHC) that M/s Farooq Corporation, involved in mis-declaration and duty and taxes evasion of Rs 992,340, is not entitled for any relief.
A two-member bench, headed by Justice Munib Akhtar, was hearing the constitutional petition filed by M/s Farooq Corporation against a show-cause notice issued by the tax authorities for its alleged involvement in tax evasion.
During the hearing, Deputy Director Customs Tausif Amam Gurchani filed para-wise comments, informing the court that the petitioner deliberately mis-declared the description and value of the consignment to evade duty and taxes. He submitted that the petitioner has mis-declared the description and value under section 32 (1) & (2) 32 read with section 25A and 79 punishable under clauses (14) and (14A) of section 156 (1) of the Customs Act, 1969.
He argued that petition is not maintainable, therefore, may be dismissed along with listed application. After reply of the respondents, the court adjourned the hearing and directed the petitioner to file a rejoinder on the next date of hearing.
Earlier, counsel for the petitioner stated that being active importer, the company imported a consignment bearing HS Code 9503.0010 from China and filed goods declaration on December 10, 2016 on the basis of import documents declaring the goods at $0.90/kg having total quantity of 4,590/kg (net weight ), which was selected for examination.
According to the petitioner, after examination, the customs authorities alleged mis-declaration of description of the consignment, hence, the officers concerned discarded the value declared by the petitioner. The officials assessed the goods on the basis of valuation ruling no 871/2016 issued on June 20, 2016, according to which the goods are to be assessed at the rate of $4/kg.
The counsel argued that difference between declared description of the items and alleged description is that the declared description only relates to some parts such as battery, tiers, handle etc, whereas, it relates to the complete parts in un-assembled form. It is submitted that there is no charge of mis-declaration of net weight or mis-declaration of PCT Heading.
Citing Sectary Revenue Division, the Collector of Customs Appraisement West and the Directorate General of Intelligence and Investigation (Customs Enforcement) Regional Office Karachi as respondents, the petitioner pleaded that the court may direct the respondents to release the consignment of the petitioner on the bank guarantee immediately.
