KARACHI: The Collector of Customs (Appeals) has struck down the order-in-original passed by Customs Adjudication against one M/s Sattar Electronics and suspended the penalty/fine imposed on the importer.
According to the details of the case, M/s Sattar Electronics imported refrigerators and declared the imported goods to be single door direct cool refrigerators including 60 liter capacity (275 unit), 52 Liter (367 unit), 30 Liter (575 unit) and Spare parts free of charge approx 10kg. The importer determined his liability of payment of duties & taxes and sought clearance.
On physical examination the containers lying at KICT were examined by the Staff of R&D Section in presence of the representative of the Customs agent and found to contain single door direct cool refrigerator showing trade mark Gaba National, Thailand. The assessment of refrigerator is being made as per Valuation Ruling No.541/2013 dated 24.01.2013 on the basis of inner liter capacity of the refrigerator where inner capacity is not available half of the outer capacity shall be taken as inner capacity for assessment.
The outer capacity was taken and found to consist inner capacity to 43.89 liters, 62.75 liters and 77.3 liters respectively.
The Adjudication established that the importer in association with the Customs Clearing Agent has deliberately and willfully concealed or mis-declared the actual specification/capacity of the refrigerators and attempted to get the goods cleared on substantially lower value.
The charge regarding the mis-declaration is established for the item number 3 only i.e. 30-liter capacity refrigerator as the value difference is more than 30percent. The value difference in other goods is less than 30% and do not warrant contravention as per SRO 499(1)/2009. The Adjudicated observed that the subject goods should be confiscated. However, under section 181 of the Customs Act, 1969, the option to get the impugned goods redeemed is given to the trader on the payment of 35% redemption fine on the offending value of impugned goods and a 35%redemption fine is imposed Rs224748 and a personal penalty of Rs. 30,000 is also imposed on the trader.
The importer approached Collector of Customs (Appeals, who after due perusal struck down the order of the Adjudication and suspended the fine and redemption penalty.