KARACHI: The Collector of Customs (Appeals) has set aside the additional demand created by Appraisement West through reassessment of goods against a motorcycle parts’ importer, as opening the case and making fresh assessment was beyond jurisdiction.
According to the details of the case, M/s Dynamic Bravo (SMC) Pvt Ltd imported a consignment of motorcycle parts from China and filed ex-bond GD for removal of goods warehoused. Appraisement West created recovery of Rs0.805 million through assessment note dated 10.09.2014.
The representative of the importer submitted that any assessment order so passed is appealable before Collector of Customs (Appeals), if the Customs had any reservation against the passed assessment orders, the appropriate course of action was to assail the said orders before the Collector Appeals, which had not been done within the stipulated period.
He maintained that reassessment is permitted after calling for the documents after release of the goods and the declaration or documents or any information or statement so furnished is found to be incorrect in respect of earlier assessment. In the absence of availability of any mis-declaration, misstatement false documents/statement, reassessment is not permitted. As evident from the reassessment orders, which is silent in this regard confirming that no mis-declaration in regards to any aspect i.e. declaration, documents, information or statement has been made by the importer.
He said the Customs tried to reassess the goods at the stage of ex-bonding, which is not permitted as the goods were allowed in bonding after passing of assessment orders.
Moreover, prior to passing an order for recovery of short-paid amount of duty/tax, it is pre-requisite to issue a show cause notice, which was not issued.
Collector (Appeals) observed that after completion of assessment and goods being out of customs charge, the matter had become past and closed transaction. Customs had no authority to re-open the case with a view to revisit the assessment. The Collector (Appeals) set aside the demand created by Appraisement West.