KARACHI: The Sindh High Court (SHC) has ordered the customs authorities to provisionally release the Telenor Pakistan (Private) Limited’s consignment of batteries after receiving the disputed amount of duty/taxes.
The division bench of SHC directed the petitioner company to deposit the disputed amount of duty and taxes with the nazir of the court who will issue an appropriate certificate for release of the consignment.
Advocate Syed Shabeer H Shah, who represented the petitioner company, submitted that it imported ZTE, SHOTO and YUASA brands’ batteries of heavy weight for their installation in telephone exchanges. The consignment is lying at the port.
He 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 clearance of the consignment paid applicable 10 percent 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 percent customs duty under HS Code 8507.2090 which is for multi-purpose batteries, which cannot be used in telephone exchanges. This HS Code 8507.2090 is not applicable to the batteries imported by the petitioner.
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 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 order conditional release of the consignment till the matter is decided.
