KARACHI: The Sindh High court (SHC) has directed the tax authorities to release the consignment of “potato frozen French fries” on the payment of entire differential amount by the petitioner in the shape of pay-order.
A two-member bench, comprising Justice Munib Akhtar and Justice Saeeduddin Nasir, was hearing the petition filed by Samrah Munsub, challenging the Valuation Ruling No 842/2016 which enhanced the values of frozen food products from $0.60/per kg to $1.40/per kg.
Earlier, counsel for the petitioner stated that petitioner is engaged in the lawful import of “frozen food” and it has been appointed as distributor of their various frozen food products for the territory who market their products under the brand name of markets in Pakistan. Petitioner amongst other products also imports frozen French fries (assorted) at the transaction value ranging between $0.60/per kg to $0.65/per kg.
According to the petitioner, the director of valuation in the absence of any evidence of contemporaneous import at a higher value arbitrarily fixed the customs value of frozen French fries (assorted) at $0.70/per kg and issued the valuation ruling and also fixed the value other brands of potato frozen French fries.
The petitioner is aggrieved and seriously prejudiced of the illegal and mala fide action of the respondents whereby the director of valuation has arbitrary fixed the customs values of potato frozen French fries at $0.70/per kg than enhanced it from $0.70/per kg to $1.40/per kg as it has not been conferred any power under sub section (1) of section 25 A of customs act, 1969.
Citing Sectary Ministry of Finance, Customs Valuation directorate and Customs Appraisement-East collector as respondents, the petitioner pleaded the court may declare the valuation ruling is illegal, arbitrary and of no legal effect.
The importer also pleaded the SHC may direct the respondents to release consignment of the petitioner.
