Law: Customs Act, 1969

Section: 156

Customs Act (IV of 1969)--Ss. 156(1)(62), 156(1)(90) & 96---Warehousing---Offence of illegal removal of goods from bonded warehouse without payment of applicable duties and taxes---Penalty (fine), quantum of---Taxpayer was found clandestinely removing material from bonded warehouse without payment of duties and taxes, and penalty under various sections of the Customs Act, 1969, including Ss. 159(1)(62) and 159(1)(90) was imposed on him, which was determined to be Rupees 500,000---Contention of the taxpayer was that under S. 159(1)(62) of the Customs Act, 1969, a maximum penalty of Rs.25000 could be imposed on him whereas contention of Customs Authorities was that in fact provisions of S. 158(1)(90) were applicable to the facts of the case under which penalty equal to ten times of value of goods could be imposed, therefore, the impugned order was not illegal---Taxpayer had admitted to have illegally removed the goods from the bonded warehouse in a clandestine manner without payment of duties and in token of such admission had deposited the principal amount of duties and taxes avoided by it---Collector had imposed penalty of a million rupees under various sections of the Customs Act, 1969 and the Sales Tax Act, 1990, however on appeal, the Appellate Tribunal reduced the same to Rupees 500,000---Held, taxpayer, in such cases, was only liable for penalty under S. 156(1)(62) of the Customs Act, 1969 whereunder maximum penalty of Rs. 25000 could be imposed---High Court directed the competent forum to give effect to the finding of the High Court---Appeal was allowed, accordingly. C.P. No.173 of 2002 rel. JUDGMENT MRS. IRSHAD QAISER, J.---This appeal filed under section 96 of the Customs Act, 1969 is directed against the order of Customs, Excise and Sales Tax Appellate Tribunal, Peshawar Bench dated 22-6-2002. 2. Feeling aggrieved appellant Messrs Kaghan Ghee Mills (Pvt.) Limited, Bilour Plaza Saddar Road, Peshawar, through instant appeal prayed for the determination of the following questions of law:-- (i) Whether under the circumstances of the case and in light of the High Court, judgment penalty of Rs.5,00,000 under clauses 57, 58, 59, 60, 62 and 90 of section…

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