KARACHI: The Customs Appellate Tribunal has set aside an order passed by the Customs Adjudication collector imposing fine and penalty on M/s Abdul Aziz & Brothers, importers of mobile accessories.
According to details, Customs Intelligence and Investigation, Karachi Region, had intercepted a container imported by M/s Abdul Aziz & Brothers. Earlier, the consignment was cleared by the Appraisement West.
The container was examined and it was reported by Customs Intelligence that the goods were grossly mis-declared. In order to ascertain the correct HS code and assessable value of the items found, samples and inventory of goods were forwarded to the Appraisement West.
Based on the applicable HS codes and values provided by the collectorate, the total assessable value was worked out to be Rs 10.215 million against Rs 5.034 million assessed by the collectorate. The total short-levied amount of duty/tax was worked out to be Rs 2.512 million.
The importers were issued a show cause notice and later Customs Adjudication ordered confiscation of goods with an option to pay 35 percent redemption fine along with leviable duty and taxes. A penalty of Rs 200,000 was also imposed on the importers.
Being aggrieved and dissatisfied, the importers moved the Customs Appellate Tribunal through their counsel Nadeem Mirza.
Mirza submitted that the goods of the importers were lawfully imported and cleared after completion of all the formalities; hence the act of detention/seizure of goods and preparation of contravention report was without legal authority and in violation of certain provisions of the law. He also referred to several other cases vis-à-vis orders of legal forums in support of his case.
After detailed deliberations and hearing both sides, the Customs Appellate Tribunal observed that the action of the Directorate General of Intelligence and Investigation in the instant case was unlawful and void ab initio.
The tribunal set aside the order-in-original as well as the show cause notice issued to M/s Abdul Aziz & Brothers.
