Tribunal strikes down adjudication order

KARACHI: Member Judicial Customs Appellate Tribunal Tahir Zia has vacated the show cause notice and set aside the adjudication order penalizing Afghan based import M/s Zubair Wali Ahmed Zai Ltd and clearing agent M/s Akmal Rafay International.

The Tribunal also ordered the Customs to allow transit of the goods upon securing insurance guarantee of the amount of leviable duty and taxes.

According to the details of the case, M/s Zubair Wali Ahmed Zai Ltd is registered with Afghanistan Ministry of Commerce & Industry and imported a consignment declared to be different items including slippers, shoes, radio and nails and filed GD in transit to Afghanistan through the clearing agent M/s Akmal Rafay  International.

Following all formalities, the consignment was allowed gate out. However, during transit, the staff of DGTT brought the consignment back to terminal and it was reexamined and undeclared goods were found including electric calculators, mega phone, LED display, Men Vest, cable jointer, Benz wheel bolt etc.

Accordingly the case  was referred for adjudication and the value of undeclared goods was reported at Rs4.741 million involving duty and taxes of Rs2.793 million. The Adjudication established the charges and ordered confiscation of undeclared goods with redemption option on payment of fine 35 percent of the value of the goods while importer and clearing agent were also imposed penalties.

Being aggrieved with the order-in-original the importer and clearing agent approached Appellate Tribunal.

After detailed deliberation of the case and in the light of earlier judgments by superior for a, the Tribunal observed that the action of customs officials in Karachi detaining and reopening the consignment is legally unsustainable and it is without lawful authority.

The Appellate Tribunal  vacated the show cause notice and set aside the adjudication order penalizing Afghan based import M/s Zubair Wali Ahmed Zai Ltd and clearing agent M/s Akmal Rafay International.

The Tribunal also ordered the Customs to allow transit of the goods upon securing insurance guarantee of the amount of leviable duty and taxes.

The importer was represented by Nadeem Mirza Advocate.

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