KARACHI: A two-member bench, headed by Justice Muhammad Junaid Ghaffar has dismissed special customs reference applications filed by Collector of Customs Appraisement East and Collector of Customs Port Muhammad Bin Qasim against M/s Hi-Tech Impex, M/s New World Impex, M/s Faisal International, M/s Ali Enterprises, M/s Sana Enterprises, Ashfaq Ahmed & others.
Through these reference applications, the applicant has impugned a common Order dated 17.11.2014, passed by the Customs Appellate Tribunal, at Karachi, in Customs Appeals Nos.K-729 to K-735/2014.
On 14 April 2021, court released a detailed judgment and observed that “learned counsel for the applicant submits that the tribunal was not justified in passing the impugned order inasmuch as the department has the authority to re-assess any consignment in terms of section 80(3) of the Customs Act, 1969, even after clearance of the same; hence the proposed questions of law be answered in favour of the department by setting aside the impugned order.
We have heard the learned Counsel for the Applicant and perused the record. Notice was ordered and despite being served, nobody has affected appearance on behalf of the respondents. Since these matters are pending since 2015, we deem it appropriate and necessary to decide them on the basis of available record, as nobody has turned up despite being served.
It appears that the respondents were aggrieved by the order of re-assessment made by the department, by way of an alert in the computer system, whereby after clearance of their consignments, the assessment value was enhanced.
The value declared and assessed on 23.1.2013 at the time of clearance and processing of Goods Declarations was USD 1.20/KG and through impugned re-assessment dated 24.3.2013 it was enhanced to USD 1.87/KG1. Admittedly this was done behind the back of the Respondents and without any notice or hearing.
They impugned such re-assessment before the Collector of Customs (Appeals), who vide order dated 13.06.2014 though agreed with the contention of the respondents that no such re-assessment can be made in terms of section 80(3) of the Customs Act, 1969 (“Act”); however, at the same time observed that the Appeals are premature.
we may observe that the learned Tribunal in the impugned order has unnecessarily indulged in dilating upon various legal issues which were never a subject matter in these proceedings; as a consequence thereof, the Applicant has been compelled to propose various questions of law; however, in our considered view there is only one legal question in this matter that “whether a re-assessment order can be passed under section 80(3) of the Act, once the consignment has been released and cleared from Customs”; and the same is answered in negative; against the Applicant and in favor of the Respondents.
The Reference Applications stands dismissed; however, we have not concurred with the observations of the learned Tribunal while arriving at this decision; the same being extraneous to the issue in hand and not germane to the present proceedings. As a consequence, thereof order of the Collector Appeals stands restored subject to hereinabove observations.
Office is directed to send copy of this order to the Appellate Tribunal in terms of Section 196(5) of the Act and shall also place a copy of the same in all connected Reference Applications”.
