Law: Customs Act, 1969

Section: 32

Customs Act (IV of 1969)--S.32(2)---Constitution of Pakistan (1973), Art. 199---Constitutional petition--- Recovery of duty beyond period of six months--Non-issuance of show-cause notice by Authorities--- Validity---Time frame was prescribed for recovery of duty erroneously refunded and issuance of a show-cause notice--­Despite the requests made by the petitioner that a show-cause notice be issued to him so that he might explain his position, Authorities did not issue the notice---Recovery in question was related to a period which was beyond 6 months from the relevant date---Recovery beyond the period prescribed was not permissible under the provisions of S.32(2) of Customs Act, 1969---Detaining of goods of the petitioner against the demand in question was not legal, and the action was unauthorised and unlawful in circumstances. JUDGMENT The petitioner imports edible oil, which after processing, manufacturing and packing in suitable containers, is sold to consumers at large. The edible oil is imported in bulk quantity and therefore, the goods remain in bonded terminals from where suitable quantities are drawn. The petitioner is also liable to pay customs duty on the edible oil. 2. On 20-6-1990 the petitioner received a letter, dated 14-6-1990 from the Assistant Collector of Customs, Oil Section, Kemari, Karachi, asking the petitioner to make a payment of Rs.4,47,336 being customs duty which was excessively refunded to the petitioner-Company. The petitioner raised objections with respect to the demand and stated that the calculations made by the department on the basis of an audit objection, were incorrect. It is said that the matter was referred to two Inspectors of the Department who did not justify the demand and stated that the certificate issued to the petitioner bearing Nos.98/88, 99/88 and 100/88 of 1988, were correctly issued and the audit objection was not correct. That despite this, a detention order for recovery of Rs.4,47,336 was issued on 2-2-1991 which said:-- "Further goods imported on their/his behalf and passing through the Customs House should be detained under the provision of section 202 of the Customs Act, 1969, until the dues are paid."…

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