Law: Customs Act, 1969

Section: 25A,25D,81,193,194-A

Summary

The petitioners challenged the assessment of imported goods and sought provisional release of consignments, arguing that the applicable Valuation Rulings did not cover their goods. The respondents opposed the petitions, relying on precedents (Wasim Radio Traders and Shamim Ahmed) and the third proviso to Section 81 of the Customs Act, 1969, contending that provisional release was barred where Valuation Rulings were in force.

The Court held that the cited precedents were distinguishable, as in the present case no review under Section 25D or appeal against Valuation Rulings was pending. The petitioners were not challenging the Valuation Rulings themselves but asserted non-applicability of those rulings to their imported goods. Consequently, the Court allowed the petitions and ordered release of consignments upon deposit of undisputed duties and taxes with the department and securing the disputed amount through bank guarantees or pay orders with the Nazir. The secured amount was made subject to the outcome of pending appeals before the Collector (Appeals).

Sections Used

Section 25A, Customs Act, 1969 – Valuation Rulings