Law:

Section:

Customs Act (IV of 1969)--- ----S. 25---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss.2(3), 9, 10 & 11---Determination of customs value of imported goods---Complainant who imported a consignment of 'Polyurethane Resin' claimed applicability of PCT heading '3909.5000' attracting Customs Duty at 5%, Sales Tax at 0%, Income Tax at 1% and Federal Excise Duty at 0%---Customs Authorities, on the other hand determined that PCT heading '3208.9090' was applicable in the light of test report attracting Customs Duty at 20%, Sales Tax at 16%, Income Tax at 3% and Federal Excise Duty at 1%---Complainant cleared the goods on payment of leviable duties and taxes under protest as determined by the department, but agitated the matter---Plea of Departmental Representative was that issue of classification of Polyurethane Resin had already been decided by the "World Customs Organization (WCO)" under PCT heading '3208.9090'---Contention of Representative of the complainant was that customs had been allowing clearance of said goods under PCT heading 3909.5000 even after issuance of 'WCO' ruling and that in that way the complainant was being discriminated against other importers---Said imported chemical, in the past, was classified on the basis of percentage of volatile contents of the medium (organic solvent) in which it was dissolved---If said chemical was imported in a medium of more than 50% volatile organic solvent, it was classified under PCT heading 3208.9090 and if the percentage of volatile organic solvent was less than 50%, then it was classified under PCT heading 3909.5000---According to technical literature the percentage of volatile organic solvent in the consignment was 30-35% and correct classification of imported goods was under PCT heading 3909.5000 as claimed by the complainant---Maladministration in terms of S.2(3) of Establishment of Office of Federal Tax Ombudsman Ordinance, 2000 having been established against department, recommendations were made to Federal Board of Revenue to direct the concerned officials to refer the matter to PCSIR Laboratory, as the result of the Customs Laboratory appeared to be contrary to its earlier…

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