KARACHI: The Customs, Federal Excise and Sales Tax Appellate Tribunal, Special Branch Karachi comprising Ghulam Murtaza Bhatti, Member (Judicial) and Khawaja Umar Mehdi Member (Technical) deciding an appeal filed by M/s Shan Associates Karachi declared the imposition of penalty and fine was remitted as no mens-rea against the appellant proved.
However it directed the appellant to pay the leviable duties and taxes as determined by the department on the basis of the laboratory test.
The importers in Goods Declaration (GD under code HS 6001.9290 claiming Customs duty at 16 percent under Free Trade Agreement vide SRO 659(I)/2007, sales tax 3 percent and income tax one percent under SRO 1125(I)/2001.
The Customs examination declared the GD by importer stood false as the consignment was polyester fleece fabrics shawls in assorted colour and sizes. Whereas the importer claimed the imported goods were knitted pile fabric (polar).
The tribunal held that under section 181 of the Customs Act 1969 goods are freely importable and the appellant has made no violation of the provisions of section 15 or of a notification under section 16 ibid. Therefore section 17 ibid is not attracted and thus fine and penalty imposed by the respondent was in violation of the law.
The Tribunal heard advocate representing the appellant. The counsel maintained importer did not violate the said SRO and the consignment/container of imported goods.
The tribunal disposed of the case without imposing any cost and impugned order is therefore modified only to the said extent.