KARACHI: A division bench of the Sindh High Court (SHC) directed customs officials to file their comments on a constitutional petition filed by S.M Traders Pvt Ltd seeking EPZ exemption from the customs duty and taxes in terms of SRO 881(I)/80 and release of its imported consignment of used clothes.
On 10 February 2021, during the hearing, counsel for the petitioner stated that petitioner had imported a consignment containing used clothing weighing approximately 24, 374 kg into the export processing zone for warehousing purposes, and the petitioner filed goods declaration according with law.
He further stated that imports into EPZ are exempt from the customs duty and taxes in terms of SRO 881(I)/80 read with PCT Heading 9917, thereafter, the question of loss of revenue or payment of duty and taxes does not arise at all in the present case.
He argued that immediately after the examination of March 05, 2018, subject goods were seized, however, no seizure notice in terms of section 171 was issued to the petitioner and a show cause notice was issued to the petitioner alleging therein that the petitioner is connivance with its clearing agent had deliberately not only forged the import documents but also concealed a huge quantity of printed furnishing/ curtain fabric and mis-declared the description, quality, classification, value and origin of the imported goods.
Counsel further argued that customs appellate tribunal has passed an order in favor of the petitioner, therefore, consignment of the petitioner was required to be released, however, the customs officials refused to release the consignment on the ground that the judgment of the customs appellate tribunal has been challenged before the SHC.
Citing secretary revenue Division, Chairman FBR, Collector of Customs Appraisement East, Adjudication-I, Port Muhammad Bin Qasim and others as respondents, petitioner pleaded the court to direct them to release consignment of the petitioner and restrain them from taking any coercive action against the petitioner till final order in this petition.
