Law: Customs Act, 1969

Section: 80

Customs Act (IV of 1969)----Ss. 80, 81 & 223---Constitution of Pakistan (1973), Art.199---Constitutional petition---Levy of customs duty---Provisional assessment of customs duty---Furnishing of Bank guarantees---Claim of petitioners/ importers was that goods imported by them were liable to be classified under P.C.T. heading 84.17 and were liable to customs duty at the rate of 40% ad valorem, whereas the Authorities had claimed that imported goods fell under P.C.T. heading 84.15 attracting customs duty at 120%---Said goods, however were provisionally assessed at the rate of 120%, but petitioners were allowed the facility of releasing them upon payment of 40% and furnishing a Bank guarantees for remaining amount of 80%---Said Bank guarantees were furnished accordingly which were to expire on specified extended dates---Case of petitioners was not finalized by the authorities despite direction of higher authority even after expiry of dates of Bank-guarantees---Said guarantees were initially issued for a period of three months and subsequently were extended for further period of three months upon same terms and conditions---Authorities contended that said guarantees were to remain intact till final assessment was made---Contention was repelled in view of the fact that in case guarantees were to remain alive till authorities chose to make a final assessment, then there could be no possible ground left for seeking extension of guarantees---Authorities could not choose to delay final assessment at their leisure and claim Bank guarantees to remain alive---Section 81(2) of Customs Act, 1969, as it stood at the relevant time, required that when goods were released on basis of provisional assessment, the amount of duty payable was to be "finally assessed as soon as could be" and subsequently a mandatory period of 180 days for doing so was provided---No final assessment having been made within said period of six months, no demand whatsoever could be made by the Authorities---No provisions of law enabled customs officers to provisionally assess duties at a higher value and then release them upon payment of a lesser amount---Amount determined on provisional assessment had…

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