KARACHI: A division bench of the Sindh High Court (SHC) directed customs officials to file their respective para wise comments on a constitutional petition filed by M/s Bhanero Textile Mills Limited for enforcement of recovery of Rs22,965,483 and penalty of Rs500,000 despite appeal is pending before customs appellate tribunal Karachi.
On 14 December 2020, during the hearing, counsel for the petitioner stated that petitioner is aggrieved and seriously prejudiced by the actions of the customs officials who being a government functionary and working under the Chairman FBR have attempted to take coercive measures against the petitioner in terms of section 202 of the customs act, 1969 for alleged payment of duty and taxes of Rs22,965,483 along with penalty of Rs500,000 on account of order-in-original no 486/510 dated Nov 11, 2020 against which appeals under section 194A of the customs act, 1969 were filed vide appeal no K-1881/2020 on Dec 04, 2020.
He further argued that for assistance to this court the question of law involved in this petition is whether the customs authority could initiate recovery proceedings against the petitioner on the basis of order-in-original against which appeal under section 194A of the customs act, 1969 have been filed before the customs appellate tribunal Karachi which is not functional.
Counsel further stated that learned collector of customs adjudication without going into the merits of the case and without confronting the petitioner upon allegations and his contention has decided the impugned show cause notice, wherein a liability of customs duty and taxes of Rs22,965,483 were worked out and also imposed penalty of Rs500,000 on the petitioner without any legal justification.
Citing chairman FBR, collector of customs Appraisement East and the customs appellate tribunal as respondents, petitioner pleaded the court to declare that on enforcement of demand of customs duty and taxes along with penalty on the strength of impugned order-in-original could be made or enforced by the officers of the respondents prior to the final adjudication by the customs appellate tribunal.
