SHC dismisses SCRA in alleged Indian fabric case

KARACHI: A special custom reference application (SCRA) filed by Collector Customs, Port Muhammad Bin Qasim against M.J Industries, importers of  fabric was dismissed by a custom appellate.

The  department challenging the judgment by the Special Customs Appellate Tribunal (SCAT) which set aside the ONO passed against the importer.

According to details, the respondent company imported a consignment of fabric from China which was detained on allegation that it was of Indian origin.

Masooda Siraj advocate appearing for the applicant argued the case and submitted that respondents failed to prove that fabric imported is not of Indian origin. It was further contended that SCTA erred when it sat aside the ONO passed by the adjudicating authority.

The counsel for respondents rebutting the arguments of the counsel for the department that the importer submitted the Bill of Lading, Commercial Invoice, Certificate of Origin and thus discharged onus of proving the origin as per section 187 of the Customs Act 1969. The ONO was passed on mere presumption that fabric is of Indian origin while the respondent was never confronted nor any material evidence was advanced by the department.

The bench after perusing the judgment was well as record held that respondent has submitted all relevant documents at the time of adjudication while department failed in establishing its allegation.

The bench further observed that judgment by the SCTA is based on finding of facts while law points raised by the department in the instant SCRA are irrelevant.

The bench with the above observation dismissed the SCRA filed by the department.

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