Law: Customs Act, 1969

Section: 18, 25, 32(1), 32(3A), 195,, 80, 79

(a)   Customs Act (IV of 1969)---

----Ss. 18, 25, 32(1), 32(3A) & 195---Assessment conducted by Authority---Reopening---Scope---Petroleum Company imported furnace oil in an oil tanker which was partially empty and, considering "dead freight" for the empty space, paid the charges whereof Goods Declaration (GD) was made as per the assessment made by the Appropriate Officer of Customs, however, during audit, an Audit Officer, Director General Audit Customs and Petroleum, raised objection, on his own, on the value determined by the Appropriate Officer on the ground that the GD failed to represent the correct amount of freight---Stance of the importer (Petroleum Company) was that show-cause notice issued by an officer not competent to adjudicate the matter cannot reopen the order of assessment under S. 195 of the Customs Act, 1969, and that only the Collector Customs is the competent officer to exercise such powers---Department/Collectorate filed Reference against judgment passed by Customs Appellate Tribunal whereby the Order-in-Original (to pay duty and taxes amounting to Rs. 2,481,696 in terms of Ss. 32(1) & 32(3A) of the Customs Act, 1969) rendered by Additional Collector of Customs (Adjudication) was set-aside while accepting the appeal of (Importer /Petroleum Company)--Validity---Record revealed that respondent being an importer, undeniably, chartered a vessel "Shalimar" whereof he signed an agreement to import crude oil from UAE , which was destined to CRL, offshore Petroleum Jetty, Pakistan-QGDN---Freight charge per metric ranged from US$ 14.M tons (with average of US$ 9.M ton), which consignment was formally imported and cleared vide relevant GD---Audit Officer, Director General Audit Customs and Petroleum Lahore, during audit, found a discrepancy in the GD that the freight included in the consignment was about US$ 3 per metric tons which was low and was not in accordance with the general marker practice, thus, resulted in short-realization of revenue, amounting to Rs 2,481,696---Additional Collector (Adjudication), Quetta, while holding the showcause Notice to be in accordance with law / record, directed respondent (importer) to pay such arrears in terms of Ss. 32(1) & 32 (3A) of the Customs Act, 1969--Tanker wherein petroleum product was loaded was partially empty, whereof dead freight was, undeniably, paid---Admittedly, respondent (importer) had paid duty on the furnace oil which was imported and declaration was made thereof and charges of dead freight were paid, thus, neither the case of respondent /importer squared within the purview of S. 18 nor under S. 25 of the Customs Act, 1969, as such Show-Cause Notice issued by the concerned Additional Collector Customs without any legal justification---Reference was answered in negative i.e. against the Applicant / Collectorate.