Misdeclaration of auto parts: MCC Appraisement West approaches High Court

KARACHI: MCC Appraisement West has approached Sindh High Court against the order of Customs Appellate Tribunal raising certain questions of law in a case pertaining to M/s Chief Auto Center importing auto parts in the garb of machinery parts to evade government’s legitimate revenue.

According to details, M/s Chief Auto Center imported three consignments declared to contain cylinders liner and pistons from Japan and processed the GDs.

The GDs were selected for checking and it was found the GDs were assessed under declared PCT 8409.9999. However, an information was received that the importer M/s Chief Auto Center, Lahore is importing auto engines’ parts under the garb of machinery parts and making attempt to inflict loss of revenue to the exchequer to the extent of Rs59 million.

The consignments were reexamined and found to contain the auto engines’ parts correctly classifiable under PCT 8409.9910 chargeable to customs duty 35 percent instead of declared PCT 8409.9999 chargeable to custom duty 11 percent.

Subsequently, the consignments were detained and a show cause notice was served on the importer. The Collector Adjudication vide order-in-original and without giving due consideration to the established facts and circumstances and rather passed the judgment as per dictates of the importer. Collector Adjudication observed that the imported goods are subject to payment of duty and taxes as per PCT 8409.9999 as machinery parts and there is no charge of mis-declaration.

Dissatisfied with the order-in-original, MCC Appraisement West  has approached Sindh High Court challenging the adjudication order. It is submitted that the M/s Chief Auto Center willfully misdeclared the classification to evade national revenue.

Sources said the clearing agent and importer M/s Chief Auto Center were evading revenue in an organized manner.

The importers are influential people and force Customs authorities to prepare contravention instead of the FIR in case they are caught, then they through their well established link with a collector adjudication and a member Tribunal get the decisions as per their requirement.

Due to these black sheep in adjudication and tribunal, Customs has to face extended litigation and loss of revenue often.

It may be mentioned here that Directorate of Customs Intelligence and Investigation has already filed a SCRA against M/s Chief Auto Center for revenue evasion.

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