KARACHI: A two-member of the Sindh High Court (SHC) dismissed a special customs reference application No.1233 of 2015 filed by Collector of Customs against Ms Shazia Aman during the case hearing Mr. Iqbal M. Khurram attended the court for applicant and no one appeared for respondent.
On 16 December 2021, after the arguments, the Court dismissed the special customs reference application and observed in its order that “we therefore cannot form a different view than the above as it would lead to a factual controversy as well. Insofar as merit of the case is concerned, record shows that the goods were cleared under section 80 of the Customs Act, 1969 as final assessment by the competent authority during the period from February 2009 to January 2010.
The department made a case for a short levy of customs duty and other taxes on account of Valuation Ruling of 10.07.2008, which was subsequently reviewed by the competent authority under section 25(d) of Customs Act, 1969 on 15.07.2009 and 27.04.2010.
The record further shows that as against assessment Order no appeal was preferred under the provisions of Customs Act, 1969 and hence the proceedings under the garb of Valuation Ruling would not be sustainable under the law for which they may have recourse of appeal under the law.
Notwithstanding above, the Valuation Ruling such as one dated 10.07.2008 is not applicable as the valuation is to be issued on the basis of data of 90 days, either before or after, import in terms of Rule 107(A) of Customs Rules 2001.
It has not been disclosed as to what the exact dates of the clearance of the goods are; however subsequent valuation rulings, as reviewed, are of 15.07.2009 and 27.04.2010 respectively. In the absence of a clear date of clearance of the goods, the applicability of Valuation Ruling of 15.07.2009 and 27.04.2010 would be farfetched.
Subsection 4 to Section 25A of Customs Act, 1969 was amended by Finance Act 2010 and assented on 30.06.2010 which was subsequent to the last ruling relied upon, hence by the time goods were cleared the regime of availability of 90% data, pre or post, was applicable as the applicability of last issued Valuation Ruling was introduced after 30.06.2010.
Even the show-cause notice is silent as to the date of clearance of the goods. In view of the above the two questions framed by this Court, as referred above, are answered in affirmative i.e. in favor of respondent and against the applicant, in result whereof this Special Customs Reference Application is dismissed along with listed application.
A copy of this decision may be sent under the seal of this Court and the signature of the Registrar to learned Customs Appellate Tribunal Bench-I, Karachi, as required by section 196(5) of Customs Act, 1969”.
