Law: Customs Act, 1969

Section: 196

Law: Customs Rules, 2001

Section: 558,564(4)

Customs Act (IV of 1969)----S.196--Customs Rules, 2001, R. 564(4)--Custom General Order 12 of 2002, dated 15-6-2002 [as amended vide Custom General Order 6 of 2010, dated 20-8-2010 para. 25A--Reference--Afghan Transit Trade-- Short supply beyond one percent--Dispute between the parties was with regard to levy of duties and taxes in respect of loss of consignment due to transit evaporation beyond one percent and loss due to terrorism-- Validity--Damage caused by any event including terrorism, Customs Appellate Tribunal was the last fact finding forum and until such stage not a single incident of act of terrorism was established--Carriers of the consignment were not absolved from their responsibilities and were liable to pay duties and taxes as act of terrorism did not cause any damage to consignments on their way to Afghanistan--Carriers transporting such goods could not establish that loss was due to evaporation rather it was due to ill will of carriers who took advantage of such concession and gained commercially on such count--In absence of such understanding, loss could not be counted against carriers who were entitled to one percent concession and were saddled with responsibilities of duties and taxes over one percent--None of the clauses of paragraph 25A added to Customs General Order 12 of 2002 absolved importer / carrier from payment of duties and taxes beyond one percent whereas concession of one percent would remain intact-- Reference was disposed of accordingly. Al-Haj Enterprises (Pvt.) Ltd. v. Collector of Customs 2017 SCMR 1598 rel. JUDGMENT: MUHAMMAD SHAFI SIDDIQUI, JUSTICE:---.--- While hearing this bunch of References[1] two questions of law were framed on 29.09.2021 and the same are reproduced for convenience as under 1. Whether in the pertinent facts and circumstances duties and taxes could be levied in respect of loss of consignment, due to transit evaporation, beyond one percent? 2. Whether in the pertinent facts and circumstances duties and taxes could be levied in respect of consignments allegedly lost on account of terrorism? 2. In one set of References, the Collector of Customs has challenged the facilitation of non-payment of duties and…