Law: Customs Act, 1969

Section: 196

JUDGMENT YAHYA AFRIDI :-J: M/s Al-Khair Traders, Shengus Market, Khar Bazar, Bajaur Agency through its sole Proprietor Haji Khairullah son of Haji Muhammadullah, the present petitioner, has filed the present Customs Reference under Section 196 of the Customs Act, 1969 ("Act"), seeking opinion on ten legal issues, has challenged the judgment dated 19.9.2013 passed by the Customs Appellate Tribunal, Peshawar Bench, whereby the appeal filed by the petitioner was dismissed and maintained the order of the Collector Customs Peshawar passed in Order-in- Original No.345 of 2012. 2. Before this Court proceeds to render its opinion on the legal questions of law raised by the petitioner in the instant Reference, it would be appropriate to state, in chronological order, the events as they unfolded and finally led the petitioner to file the instant Reference. The same are as follows:- 1st July till 30th July, 2010. The present petitioner, imported 50 consignments of Polyester Fabrics. Based on Valuation Ruling No.259 dated 3.6.2010, the imported goods were cleared on payment of Rs.88.303 million as taxes and duties. 14th October, 2010. An audit team was constituted, which after its examination reported that, "the declared weight and systems were available in each case and the same weight was required to have been made basis for the purpose of appraisement of assessable value and assessment of duty/tax." It was also pointed therein that, the unit for weighing the Polyester fabric was Kg but the same was not followed, thus action led to under weighment of imported fabric and thus the short payment of duties and taxes. 9th December, 2010. Demand cum Show Cause Notice ("First Notice") was served upon the petitioner and Messrs Al-Salco the Customs Agency, under subsection 1,2, 3 and 3-A of Section 32 read with Section 156 (14) of the Act, by the Deputy Collector, for recovery of duties and taxes totaling Rs.21.101 Million. 10th October, 2011. The Assistant Collector passed the Order-In- Original No.8 of 2011 ("Order-In-Original N0-8 of 2011") holding that: "Keeping in view the facts of the case, it is clear that the respondents have evaded sufficient amount of Government revenue…