Notice issues in petition challenging re-assessment, ST recovery

KARACHI: A customs appellate bench of High Court of Sindh (SHC) comprising Justice Abdul Rasool Memon and Justice Faisal Agha on Friday ordered issuance of notice in a petition challenging re-assessment by custom officials after release of consignment containing PVC Cotton Tarpulin (un-finished) and collection of Sales Tax at the rate of 3 percent.

The petition was filed by Messers Bhatti Brothers against Collector Customs, Appraisement, East, through counsel Ms Dil Khurram Shaheen advocate.

According to the petitioner, he filed Goods Declaration (GD) under HS Code 6306. 1210 dated 31-12-2011 seeking benefit of SRO 1125 of 2011. The GDs were processed and consignment was released.

The customs department later also served a notice of recovery of Sales tax which was impugned in an appeal before the SHC. The counsel for petitioner submitted that item imported was unfinished one as declared in GD and hence was releasable at Zero per cent rate of ST but the department resorting to co-ercive methods collected Sales Tax at a rate of 3 per cent which is illegal.

The bench on Friday after hearing the sides ordered issuance of notices to respondents including Collector Appraisement, East for August 10.

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