KARACHI: The Customs, Appellate Tribunal, Bench II Karachi comprising Tahir Zia, Member (Judicial) deciding an appeal K-137/2015 filed by M/s Naseem Autos Lahore declared imposition of penalty and fine by the Customs Adjudication I was arbitrary and unjustified as there was no willful default/mis-declaration on part of importer.

It said under the facts and circumstances of the case discussed supra and in the absence of mens-rea on the part of the applicant the fine/penalty was hereby remitted.

However the tribunal directed the appellant to pay the leviable duties and taxes as determined by the department.

The importer in Goods Declaration (GD) under PCT heading 3919.1090 declared it imported self adhesive reflective sheet subject to levy Duty at 20 percent claiming Free Trade Agreement (FTA) concession at 16 percent.

The Customs examination declared the GD by importer was false as the consignment was other than declared item. Whereas the importer claimed the imported goods enjoyed FTA.

The tribunal held that invoking of S.32 of the Customs Act 1969 was far-fetched and the penalty/fine imposed by the Customs was arbitrary and unjustified as there was no willful default/mis-declaration but there was bonafide declaration by the importer.

Under section 181 of the Customs Act 1969 goods are freely importable and the appellant has made no violation of the provisions of Customs sections.

The Tribunal heard advocate representing the appellant. The counsel maintained importer did not violate the said SRO and the consignment/container of imported goods.

The tribunal disposed of the Order-in-Original passed by Additional Collector of Customs Adjudication. Tribunal therefore modified order only to the said extent.