KARACHI: A two-member bench of the Sindh High Court (SHC) directed customs high officials to release detained consignment of baby diaper Spandex on bank guarantee/ pay order on a constitutional petition filed by M/s Gillani Hygienic Products seeking release order for goods seized by the customs officials due to disputed valuation.
On 12 November 2021, during the hearing, Manzar Hussain advocate appeared before the court and argued and after conclusion of his arguments, court passed following order that “in the circumstances, by way of an interim arrangement since the consignment is incurring storage charges at the port, let the undisputed quantum of duties and taxes be deposit with the Collectorate/department and disputed amount of the duties and taxes along with the adjudged fine and penalty by secured before the nazir of this court, by the way of pay order/ bank guarantee in respect of the consignments/covered by this petition.
Once the amount is secured as stipulated supra, the nazir shall issue the appropriate certificate/ if the amount is secured by the way of pay orders, the nazir shall invest the amount in profit bearing instruments as per rules, the nazir fee is settled at Rs5,000 per certificate, upon deposit the undisputed quantum of duties and taxes with the department and presentation shall release in against formulation.
The fate of the amount secured supra shall be subject to the outcome of the appeal of the petitioner pending before tribunal, this petition, along with pending application disposed of in terms herein”.
Earlier, counsel for the petitioner argued that petitioner is engaged in lawful import, manufacturing of baby diaper and imported spandex and never had been involved in any illegal activity and always fulfilled all the legal formalities according to law.
He added that during the course of business, the petitioner imported spandex totaling US$ 13, 824 and filed goods declaration according to law, however, during the examination, customs officials fixed allegations that goods reflect higher value at US$ 70,225.92.
Citing Chairman Federal Board of Revenue, Collector of Customs Appraisement East and Collector of Customs Adjudication-II as respondents, petitioner pleaded the court to declare that act of the respondents is illegal, mala fide and arbitrary.
He also pleaded the court to set aside impugned valuation of the above-mentioned goods, direct them to release petitioner’s consignment even on provisional release and restrain them from taking any adverse action against the petitioner till final order in this petition.
