KARACHI: The Customs Appellate Tribunal has rejected the Appeal filed by Collector of Custom Appraisement (West) challenging the Order of Collector (Appeals), who had dismissed the additional demand created against the importer in suspicion of under-invoicing.

According to the details of the case, Importer M/s Zulaikha Textile Mills ltd imported old and used textile machinery and sought clearance under the PCT Heading 8445.4090 at an invoice price of $40,000. The goods declaration was physically examined and it was found that the value of goods was 300 percent higher than the declared value.

This clearly shows that the importer filed an un-true declaration for getting the goods released on inflated value and evade legitimate amount of duties and taxes of approximately Rs.870,532.

Dissatisfied with the order, the importer filed an appeal before the Collector of Customs (Appeals). The appeal was allowed and its operative part states that the record has been examined and the appellants have also produced original documents pertaining to the transaction including FTA Certificate showing FOB value of $38700, goods declaration filed at the time of exporting goods from China where the custom value declared as $40000.

The importer had submitted that they are industrial importers and taxes were refundable, therefore they had no intention or motive to repress value.

Customs Appraisement West approached the Tribunal and submitted that the impugned order was bad in law as Collector (Appeals) failed in appreciating the facts that were urged before him.

After thorough examination and hearing the case, the Tribunal concluded that the invoice mentioning 300 percent higher prices was a human error and dismissed the appeal filed by Customs Appraisement.