KARACHI: The Sindh High Court on Tuesday ordered the customs authorities to release the Telenor Pakistan (Pvt) Limited’s consignment of batteries.
The SHC’s division bench directed the petitioner company to deposit the disputed amount of duty before the Nazir of the court who will issue NOC for release of the consignment.
Petitioner Telenor Pakistan (Pvt) Limited filed the petition naming Secretary Revenue Division and Collector Of Customs, Model Collectorate of Customs (WEST) as respondents.
Advocate Hyder Shaikh, who represented the petitioner company, submitted that it had placed an order for the import of ZTE, SHOTO and YUASA Brand of (2) Volts batteries of heavy weight for their installation in telephone exchanges. The consignment, packed in the containers with invoice and bill of lading, have arrived at the port.
Subsequently, Goods declaration (GD No KPPW-HC-18714–03-08-2015) for clearance was filed and duty and taxes at their transactional value were also deposited.
Mr Shaik submitted that the telecommunication equipment- ZTE, SHOTO, GS YUASA Brand and BSB are liable to be assessed at their transactional value in terms of Section 25(1) of the Custom Act, 1969. However, the petitioner in order to avoid any delay in clearing of the consignment paid applicable 10% customs duty as the consignment imported by the company falls under the Pakistan Customs Tariff (PCT) 8507.2010
But to its dismay, he added, the customs department has assessed 20% customs duty under HS Code 8507.2090 which is for multi-purpose batteries which cannot be used in telephone exchanges. Without prejudice, this HS Code 8507.2090 is not applicable to the brand imported by the petitioner.
He submitted that it approached the Collector of Customs, Model Collectorate of Customs (West) for release of the consignment against bank guarantee to avoid delay and save containers rent and demurrage charges and to save time and loss to the company but all efforts went in vain.
Customs authorities are still not clear about whether these batteries are to be assessed under which PCT Code even after the physical examination of the petitioner’s consignment.
He prayed to the court to declare that denial to accept duty under PCT Heading No.8507.2010 in terms of Section 25 and the demand of additional duty and taxes is illegal, void and of no legal effect.
The court was requested to release the pending consignments till the matter is decided.
