KARACHI: A customs appellate bench of High Court of Sindh allowed two identical petitions filed by importers of steel products setting aside assessment by Collectorate concerned in violation of Section 25-A of the Customs Act 1969.
The bench held that “Excessive pricing is anti productive as it fuels inflation as well as depletion of foreign reserves”. The bench noted that valuation of goods imported including prime quality steel products and Hot Rolled Steel Strips in coil form, on the basis of London Metal Bulletin (LMB) on the date of LC (Letter of Credit) was not the right way for determination of duty and taxes to be imposed on these imports.
The bench declared the imposition of duty and taxes at exorbitant rates upon importers Messers Zakwan Steel and Mohsin Raza as “coercive application of LMB” and said that assessment/valuation while relying on LMB is not in compliance with Section 25-A of the Customs Act 1969. Muhammad Adeel Awan and Wajeeha Mariyam Mehdi represented the petitioners while department was represented by Ms Afsheen Aman Advocate while Kafeel Ahmed Abbasi represented the FBR, Federal government.