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SHC seeks comments on petition filed by M/s Ahad Trading

byM.B. Rana
14/01/2019
in Karachi, Latest News
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KARACHI: The Sindh High Court (SHC) issued notices to customs officials and deputy attorney general on a petition filed by M/s Ahad Trading Company against enhancement of valuation of consignment of 54,000 kilograms toilet soap, imported from Oman.

On January 11, 2019, while hearing the petition, a two-member bench directed them to file their comprehensive para-wise comments on next date of hearing.

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During the hearing, counsel for the petitioner stated in his petition that petitioner in the normal course of business imported a consignment of toilet soap 54,000 kilograms for US$1,500.00 from Oman, against the mutual agreement accepting the value against the supplier and filed goods declaration for clearance of imported goods, in terms of section 79 (1) of the Customs Act.

He argued that however, officials of customs department refused to clear the imported goods on declared value and enhanced the value from US$1,500.00 to US$ 54,000.00, consequently the imported goods duty and taxes were also enhanced for Rs27,27,288 without any cogent evidence/ specific reasons, without any documentary evidence. The subject goods are imported against the contract agreement so there is no proof regarding evidence of invoice value/transactional value, and no valid valuation ruling of the directorate general of valuation is available with the customs department which leads to the increase in duty and taxes.

Citing chairman Federal Board of Revenue, Collector of Customs Appraisement East as respondents, petitioner pleaded the court to accept the declared value, because provisional assessment is not completed nor finalized under Section 80 of the Customs Act, 1969, within time, under Section 81 (2) & (5) of the Customs Act 1969.

He further pleaded the court to allow this petition as pray and may kindly be directed to nazir to return the security amount (2 pay orders) along with interest.

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