| Citation(s) |
|---|
| 2015 SLG 141 2015 SLD 141 2015 PTD 1100 2015 PTD 630 (2015) 112 TAX 84 |
Supreme Court of Pakistan
Civil Appeal No. 214 of 2005, decided on 24th November,2014. DATE of hearing: 24th November, 2014. (Against thejudgment dated 14-9-2004 of the High Court of Sindh, Karachipassed in C.P. No. D-511 of 1992)
MIAN SAQIB NISAR, AMIR HANI MUSLIM AND EJAZ AFZAL KHAN, JJ
Khalid Anwar, Senior Advocate Supreme Court and M.S. Khattak, Advocate-on-Record for Appellant. Kh. Ahmed Hassan, D.A.G. for Federation. Malik Itaat Hussain Awan, Advocate Supreme Court for
Respondents
Civil Appeal No. 214 of 2005, decided on 24th November,2014. DATE of hearing: 24th November, 2014. (Against thejudgment dated 14-9-2004 of the High Court of Sindh, Karachipassed in C.P. No. D-511 of 1992)
MIAN SAQIB NISAR, AMIR HANI MUSLIM AND EJAZ AFZAL KHAN, JJ
Khalid Anwar, Senior Advocate Supreme Court and M.S. Khattak, Advocate-on-Record for Appellant. Kh. Ahmed Hassan, D.A.G. for Federation. Malik Itaat Hussain Awan, Advocate Supreme Court for
Respondents
MUHAMMAD AMIN MUHAMMAD BASHIR LIMITEDvsGOVERNMENT OF PAKISTAN through Secretary Ministry of Finance, Central Secretariat, Islamabad and others
Law: Customs Act, 1969
Section: 25,25-B
Law: Constitution of Pakistan, 1973
Section: 184(3),199
Law: Civil Procedure Code (V of 1908)
Section: PartVII,96-112
Law: General Clauses Act, 1897
Section: 24A
(a) Customs Act (IV of 1969)--- ----Ss. 25 & 25-B---S.R.O. 356(KE) dated 29-10-1991---Fixation of value of imports---Principles---Customs authorities---Discretion in valuation of goods, exercise of--- Scope--- "Import Trade Price"--- Appellant-company entered into a contract with a foreign-company for the importation of sugar from Thailand at a price of US $ 292.50 per metric ton---Customs Department issued a notification, S.R.O. 356(KE) dated 29-10-1991 purportedly fixing the "Import Trade Price" (ITP) of sugar imported from Thailand at US $ 331 per metric ton---On arrival of the consignment the appellant-company filed Bill of Entry declaring the value of the consignment at the contract price---Customs authorities disregarded the claim that the duty should be fixed on the contract price and imposed duty on the "Import Trade Price" value of US $ 331 per metric ton---Legality---Section 25-B of the Customs Act, 1969 (as was in force then) authorized the Central Board of Revenue, or an officer authorized by it, to fix the price of imported goods at such rate as it deemed fit---On basis of said section, Customs Department had issued the notification in question purportedly fixing the "Import Trade Price" (ITP) of sugar imported from Thailand---Section 25 of the Customs Act, 1969 provided the basis on which the value of goods which were imported or exported had to be fixed---Said section (as was in force then) was based on the concept of "normal value" which, as defined, was the value of goods denoted by contracts between buyers and sellers which reflected arm's length transactions between independent buyers and sellers operating in the open market---Notwithstanding the very wide language used in S. 25-B of the Customs Act, 1969, the powers exercisable by the Central Board of Revenue thereunder were to be limited and constrained by S. 25 of the Customs Act, 1969, which was the substantive section of law for the fixation of prices---Central Board of Revenue did not have and could not be allowed to have unfettered discretion---Exercise of any discretionary power must be rational and have a nexus with the objective of the underlying legislation---Customs…