KARACHI: A customs appellate bench of High Court of Sindh (SHC) disposed of a constitution petition filed by V Next Pvt Ltd challenging the Show Cause Notice (SCN) issued under section 32 of the Customs Act 1969 alleging mis-declaration.
The petition was filed through well-known law firm, Franklin Law Associates. A counsel from law firm representing the importer who filed 6 Goods Declaration for LED TV Panels for LED TVs, submitted that once GDs are assessed and duty and taxes are paid Custom Authorities have no jurisdiction to issue the SCN. He said that goods attracted Valuation Ruling 1494/2020 dated 27-11-2020. He further stated that in case of one GD, the respondents coercively made the petitioner to submit a pay order of rupees 10 Million against additional duty which petitioner submitted under protest.
The counsel for Franklin law Associates also argued that once GD is processed in accordance with law, consignment is out of charge after payment of duty and taxes, respodents have no authority to re-assess the said GDs in garb of SCN issued under section 32 of Customs Act 1969.
The bench after hearing the sides at length and perusing the case file noted that petition was filed challenging the SCN dated 11-5-2020 whereby petitioner was given ten days time to submit written reply to the SCN along with explanation. From perusal of record it appears that petitioner has not filed the Written Reply and instead challenged the SCN by filing the instant constitutional petition, the bench held.
The tendency to by-pass the forum provided under Statutory laws and to file a petition has increased, whereas, on mere issuance of SCN which prima facie do not suffer from any jurisdictional defect, amount to render the statutory forum “redundant”, the bench held adding that the grounds raised in the petition could have been agitated before the Custom Authorities who were competent to decide/adjudicated the subject controversy.
The bench disposed of the petition with direction to the petitioner side to file the written reply of the SCN raising all factual and legal points. The respondent custom authorities were also directed to consider the same keeping in view all provisions of law and case laws and to decide the controversy preferably within four week’s time.
The bench also restrained the custom authorities from en-cashing the pay order till decision of the SCN.