Notices served on Balochistan Engineering, while impugned goods disappear from EPZ

KARACHI: Notices were issued to Balochistan Engineering for Feb 15 by Customs Appellate bench of High Court of Sindh on Monday in a case pertaining to a consignment, which reportedly has started disappearing from KEPZ.

Khalid Rajper Advocate appearing for the applicant submitted that as per first question of law, court is to look into that why the appeals were heard by Special Customs Appellate Tribunal at Islamabad.

He submitted that the goods were imported for the “Tariff Area” but were taken into the Export Processing Zone.

The counsel for Balochistan Engineering interfered at this stage and said that goods in dispute are loaded on truck and are ready for release. He also said he waives notice. The bench however declined waiver and said notice is necessary in SCRA.

You must have filed a constitution petition. If you have done so we would have ordered release of your goods right now, the bench said adjourning further proceedings till Feb 15.

Brief facts of the case are that Balochistan Engineering Works Ltd filed Goods Declaration declared to contain Iron and Steel Coils (CRC Prime).

An FIR was lodged by Investigation & Intelligence, Karachi against Baluchistan Engineering Works Ltd for mix-declaration of the classification and description of goods and claiming an inadmissible concession.

Show cause notices were served on Baluchistan Engineering, which moved High Court of Sindh at Karachi.

High Court of Sindh passed order, wherein, request of the petitioner for provisional release of the subject consignments was acceded subject to securing the disputed amount of duty and taxes, redemption fone and penalty.

Customs Adjudication upheld the allegations and imposed redemption fine alongwith penalty, but on the contrary, the Appellate Tribunal accepted the appeals filed by M/s Baluchistan Engineering Works Ltd and directed the department to release the subject goods by charging the duties and taxes leviable on prime quality.
MCC Exports (PMBQ) filed SCRA before the Court of Sindh at Karachi against the Appellate Tribunal Order.

An official said Baluchistan Engineering had to submit bank guarantee or verified payorder for release of goods, but they presented post dated cheques.

On the other hand EPZ officials refused to release the goods without a valid proof of payment, while Baluchistan Engineering has not presented the proof.

It is interesting to note the premises of Baluchistan Engineering is out of operation since years. Moreover, the payments for the import of impugned consignment was made by another importer in Karachi tariff area.

Above all, according to sources the major part of the impugned goods have already disappeared from EPZ, sources said adding a JIT of Customs Intelligence and MCC Export PQ should be formed to probe the issue.

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