Law: Customs Act, 1969

Section: 25,25B

Customs Act, 1969 (IV of 1969) - Section 25 - Valuation - Determination - Deduction from import licence - Import licence issued on the basis of value of goods - Customs Authorities worked out the value under section 25 - Importers were asked to pay the duties and the value so determined was deducted from import licence - Valuation determined by the C.B.R. - Whether relevant only for the purposes of recovery of duties/taxes - Held yes - Whether deduction from import licence should worked out on the basis of normal value - Held yes. There is, however, much force in the contention of the learned counsel that the value fixed under section 25-B is notional value irrespective of its value in the country of origin and that the aforesaid value has relevance only for the purposes of Customs Act as provided by Section 25-B. On the basis of this artificial value on deduction can be made from the import licence and it is the market value determined in terms of section 25 of the Customs Act, 1969 which can form basis of such a deduction. This argument of the learned counsel for the petitioner is supported by the wording of section 25-B itself which clearly says that notwithstanding anything contained in section 25 the Board may fix value of the goods specified in the first schedule for the purposes of levy of customs duty under this Act or any other law for the time being in force. The fixation of the value by the Board has obviously reference to the payment of duties and has no application so far as other purposes are concerned. On the other hand section 25 of the Customs Act, 1969 requires the Customs Authorities to determine the normal price which is the price the goods would fetch on sale in open market by a seller or buyer independent of each other. It is that price which is to be deducted from the licence and not the artificial or the notional price worked out on the basis of import trade price issued by the central Board of Revenue under section 25-B. "The normal price (as ascertained under Section 30) is related to market value at the port of entry in Pakistan, and is of no relevancy in determining the true export price paid by the importer in the country of…

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