KARACHI: A division bench of the Sindh High Court (SHC) restrained customs officials from encashment of pay orders furnished by the petitioner till next date of hearing on a constitutional petition filed by M/s Mass Pharma Private Limited against enhancement of valuation of its imported goods comprising Glucosamine Chondroitin Tablet (heath supplement) from US$1.8366 to US$ 18/kg in the light of valuation ruling 1375/2019.
On 13 October 2020, during the hearing, Rana Sakhawat Hussain, advocate argued that the consignment of the petitioner was provisionally released by the customs authorities subject to securing the disputed amount of duty and taxes by furnishing a pay order, however, it is contended that without making final assessment of duty and taxes, the respondents intend to encash the pay order furnished by the petitioner.
After the hearing, the court issued pre-admission notices to the customs officials and also restrained them from encashment of pay order furnished by the petitioner.
Earlier, counsel for the petitioner states that in regular course of business imported a consignment of Glucosamine Chondroitin Tablet (heath supplement) from China in the month of August 2019, the petitioner on the basis on import documents, filed goods declaration in terms of section 79 (1) of the customs act, 1969 and paid duty and taxes calculated on the declared transaction/ customs value of US$ 1.8366/kg.
He further states that subsequently the petitioner’s subject goods declaration was selected for scrutiny of assessment by the officer of customs department and during the scrutiny under section 80 of the customs act, 1969 re-assessed the customs value of the petitioner’s subject consignment and increased the same from US$1.8366 to US$ 18/kg in the light of valuation ruling 1375/2019 dated March 24, 2019 which in fact does not firstly contain any customs value of US$ 18/kg and secondly, does not contain any customs value of the health/ food supplement’s brand which the petitioner has imported.
Counsel argued that the above VR though in the initial general para talks about determination of customs value of foods supplement, multivitamins/ mineral supplements and whey protein, however, customs values of few specific brand have been determined without any additional entry of “other brands” in the case of food supplement multivitamin tablets and petitioner brand which are covered by subject VR, besides it is not at par in specification/ usage with the brands, mentioned in the VR.
Citing chairman FBR, collector of Customs Appraisement West and DG Valuation as respondents, petitioner pleaded the court to declare the application of said VR is illegal on the petitioner’s goods, when petitioner’s goods/ brand were/ are not included in the list of brands covered under the said VR.
