ISLAMABAD: President Mamnoon Hussain has dismissed the Federal Board of Revenue’s (FBR) appeal against the judgement of the Federal Tax Ombudsman (FTO) in alcoholic beverages import case, registered by customs against a foreign oil and gas exploring company M/s Exalo (Krakow) operating in Pakistan.
While dismissing the appeal, the president said that the Federal Board of Revenue (FBR) remained failed to provide any logical arguments against the impugned decision of the FTO in the said case. The president also directed the FBR to implement over the recommendation made by the FTO in order within two weeks of the receipt of copy of the order.
As per the details, the complainant had imported alcoholic beverages for its expatriate employees working in Pakistan but the consignment was seized by customs authorities under the Import Policy Order 2013 reading with Sr No 14 of Appendix-A.
On the seizure of consignment, complainant contacted the Pakistan Customs to get the consignment cleared but failed to do so and later filed a complaint with the FTO by taking the stance that a foreign company is allowed under the Circular No 10(14)/93-ICM.Con dated 13.06.1994, issued by then Central Board of Revenue (now FBR), to import liquor for consumption of its non-Muslim foreign employees working in Pakistan.
On the other hand, the FBR contended the complaint that under the Import Policy Order 2013 the consignment of liquor falls in the category of prohibited items and also support the seizure made by customs authorities under Sr No 14 of Appendix-A read with Section 5 of the Import Policy.
The FTO after analysing the arguments of both parties in the said case passed the impugned order that import of liquor for non-commercial use and consumption is not prohibited. However, the FBR could not present valid arguments against the specific question of the entire dispute.
On the other hand, the president also said in the order that import of liquor for non-commercial use is not prohibited, adding that the FBR has misconceived the Import Policy Order 2013.
According to the president’s order, the FBR has issued a booklet regarding the import of duty-free alcohol on non-commercial basis.
Similarly, the customs secretary has clarified that the liquor is included in the list of commissary stores through a Circular No. 3(24) S.Val/2013 dated 21.08.2014.
The president said in his order that complainant should be given the same treatment as customs has been providing to the other commercial institution on import of liquor in the past.
