KARACHI: Deciding over a dozen identical Special Custom Reference Application filed by Collector of Customs against a judgment of Custom Appellate Tribunal pertaining to value of Polyester Poly Fleece Fabrics.
The bench earlier heard Khalid Rajpar Advocate appearing for the applicant challenged the judgment by the tribunal which sat aside Valuation Ruling as well as Order in Revision while hearing appeals by the importers of the fabric as their goods were assessed on the fall Back Method under section 25(9) of the Customs Act. The counsel for the department said that transactional values given by the appellants/importers are not applicable.
The counsel for respondents/importers including Raz Textile, Brother Industries and others contended that the entire market enquiry was conducted at their back and they were not associated with the process at any time and hence valuation under fall back method is not as per law.
The bench examined the questions of law framed which included that “Whether in view of facts and circumstances, the appellate tribunal was justified in holding that the Values of goods in question were determined directly under section 25(9) fall back method through VR no 1449 of 2020 dated 4-6-2020 without following the sequential method as provided under Section 25”.
The bench after detailed hearing answered this question in favor of the applicant department. While the second question of law that “Whether in facts and circumstances of the case, impugned determination of values through Valuation Ruling 1449 of 2020 dated 4-6-2020 was in accordance with the provisions of section 25(9) of the Customs Act 1969 (Fall Back Method) read with Rule120 of the Custom rules 2001”.
The bench answered this question against the department and in favor of the respondents/importers and remanded the matter back to the department for re-determination of values of the goods afresh in accordance with law. The bench also set aside the order of the tribunal to the extent of Valuation Ruling and Order in Revision.
As a result, the value of the goods will be re-determined as per procedure laid down in section 25 of the Customs Act 1969.