Transit import of auto parts; President of Pakistan strikes down FTO recommendations

KARACHI: The President of Islamic Republic of Pakistan has accepted the representation of the Revenue Division and set aside findings and recommendations of the Federal Tax Ombudsman (FTO) in the matter of diesel engine parts imported in transit to Afghanistan.
According to the details, Customs officials seized diesel engine parts imported in transit to Afghanistan on March 18, 2010 on the ground that these were interchangeable with auto parts, which were banned for transit to Afghanistan.
After adjudication, parts were allowed to be released. However, Collector Customs reopened case and ordered confiscation of the parts.
Later, an appeal filed by the importer/complainant was allowed by Customs Appellate Tribunal but the goods were not released and the importer approached FTO.
The Revenue Division pleaded that Customs Reference had been filed against the appellate order and was pending in Peshawar high Court.
FTO found that non-compliance of appellate order without a valid stay order granted by Peshawar High Court is tantamount to maladministration and recommended to FBR to direct Collector MCC Peshawar to allow transit to held-up container to Afghanistan, as per law.
The Revenue Division filed a representation before the President of Pakistan that matter need to be commented upon as said Customs reference filed by Revenue Division had been allowed by Peshawar High Court while review petition filed by importer/complainant against the said order had been dismissed by the court.
Accordingly, the President accepted the representation of the Revenue Division and set aside findings and recommendations of FTO.

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