Deputy Customs Collector appeal rejected as no legal evidence proven against fixation of Customs values by Directorate General

KARACHI: Customs Appellate Tribunal has rejected appeal of Deputy Customs Collector against determination of customs values for ETP iron and steel sheets as it claimed that concerned Directorate General fixed customs values on the basis of guesswork which is prohibited under law.
However, the Tribunal has maintained the Order-in-Appeals which are under jurisdiction of law as court did not find any legal infirmity or nor find any perverse evidence to interfere in previous orders.
According to details, the appeal was filed by the Deputy Collector of Customs, MCC-Appraisement Group III, against M/s Loyal Traders who had imported five consignments of ETP iron steel sheets od prime quality at the declared transactional value of $700/MT however, it was suspected that the valuation declared by the appellant was not true transaction value.
It is mentioned that ETP iron and steel sheets of secondary quality were being assessed at $916/MT in this regard matter sent to Directorate General for final assessment in which $920/MT was fixed.
It is highlighted that the prime quality is much higher than ETP of secondary quality as it is considered that importer declared value is less according to its actual determination.
The report said that the subject appeal was filed by the appellant without any substance question of law as well as without any rationale and just for the purpose to stretch litigation for getting their ulterior motives, hence liable to be dismissed on this soul ground only.
According to collectors, there is only issue involved in the case is whether the manner of determining customs value of the goods is covered under the provisions of law contained in section 25 of the Act, it is noted that no inquiry has been done regarding international prices of the commodity during the relevant period or actual transaction value of the goods imported in these case was conducted by the DG office.
The collector further contended that the declared value of $690/MT of the importers for prime quality ETP is grossly under-invoiced whereas, ETP of secondary quality had been determined at $916/MT.
It has been observed from the record that the subject appeal was filed by the Assistant Collector of Customs, MCC Appraisement Group-III, with his signature without supporting affidavit as the subject appeal was filed after delay of 95 days as time limitation in statutes exceeded.
Similarly, in the valuation case where the department took the plea that the wholesale price should be the price at which the sole proprietor sold the goods.
The Tribunal said, “A violation of principal of natural justice by a state action is violation of constitution, as regards citation under Section 206 of the Customs Act, 1969 for correction for errors that id there but for correction of clerical or arithmetical slips or omission.”
It is further added, “The mentioning clerical errors arising out of accidental slips does not mean that nature or scope of any show cause notice can be enlarged, changed or altered by corrigendum or by taking refuge under parasol of provisions of Section 206 of the Customs Act, 1969.

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