KARACHI: The Sindh High Court (SHC) restrained customs officials from taking any coercive action and directed them to consider the request of the petitioners for provisional release of their consignments, subject to securing the disputed amount in the shape of pay order/ bank guarantee on constitutional petition filed by several importers including M/s Shafiq Sons, M/s Mian Shafiq Business International and M/s Ateeq Auto Traders seeking release order of their consignments of off road tyres for dumpers, construction & mining machinery etc.
Order came on Fab 01, 2019, while the hearing of petitions, a two-member bench, headed by Justice Aqeel Ahmed also issued pre-admission notices to customs officials and directed them to file their comments on next date of hearing.
During the hearing, counsels for the petitioners have expressed its grievance against imposition of regulatory duty on the imported consignments of petitioners and also mis-classification by the respondents, as according the learned counsels for the petitioner, petitioners have imported tyres from China to be used in mining or industrial and construction machinery _dumpers, wheel loaders, concrete mixers etc)
They argued that by declaring PCT Heading 4011.8000, whereas, respondents have treated the same to fall under PCT Heading 4011.2091 and consequently have imposed regulatory duty at the rate of 35%, per learned counsels, petitioners are willing to contest such classification disputed before the customs authorities, by referring the matter to classification committee etc.
They said that however, requests that respondents may be directed allow the provisionally release of the consignments subject to securing the disputed amount of duty and taxes before the concerned collecotorate in the shape of pay order/ bank guarantee.
They argued that officials of the respondents issued demand notice for recovery of alleged evaded duty and taxes and allegation was fixed that importers are involved in evaded duty and taxes, not only issuing show cause notices but also customs department threatened them to initiate criminal proceedings in case the demand amount is not paid within 3 days of issuance of impugned notices.
Citing Chairman Federal Board of Revenue (FBR), The Collector of Customs, MCC Appraisement East, West and others as respondents, importers pleaded the court may direct them to release the present and future consignments of the petitioners under claimed PCT heading till the classification dispute is referred to decide by the Pakistan Tyre Importers & Dealers Association or the classification committee in terms of chapter 2 of CGO 12 of 2002 dated 15/06/2002.
They also pleaded the court restrain them from taking any coercive action against petitioners during pendency of these petitions including but not limited to blocking of the NTN, unnecessary harassment, blackmailing, lodging any FIR or attachment of petitioners property/ bank accounts etc.
