KARACHI: The tyre importers particularly M/s Seven Star Tyres and others got a big relief from Custom Appellate Tribunal, Karachi which allowed “interim application” suspending the Valuation Ruling No 1820/2023 and 1821/2023 dated 25.10.2023 and Order in Revision.

The CAT also ordered assessment of impugned goods of appellants under Section 25 of the Customs Act 12969 until final disposal of the case/appeals. According to custom laws, the interim relief is in excess of jurisdiction.

As per order by the CAT, the case pertains to the determination of values of different tyres and sizes and tubes including those of passenger cars, light truck and truck under impunged Valuation Ruling No 1820/2023 and 1821/ 2023. The appellants alleged that values were obtained through fictitious means under section 25 (9) in violation of dicta laid down by the High Court of Sindh in reported land mark judgment known as Sadia Jabbar Case. The order of CAT refers to the arguments advanced by the counsel for appellant on interim injunction application that Valuation Ruling and Order in Revision are illegal and arbitrary and that no market inquiry was conducted by the Respondent No 2 while Respondent DG Valuation also endorsed the VR. 

The CAT was informed that Collectorate of Customs East, West and SAPT are  enforcing the VRs and demanding duties and taxes on the basis of VRs. A prayer was made for suspension of the impugned Valuation Rulings.

The CAT in its order said that it reached a decision that impugned VRs have been issued under “deductive method” under section 25 (7) with fall back method under section 25(9). It further noted that  Order of Revision was not finalized within the stipulated time provided under the Act. The bench then ordered suspension of both the VRs as well as Order in Revision until final disposal of appeals and went on to further direct the custom authorities “to assess the impugned goods of the appellants under section 25 of the Customs Act until the final disposal of the case”.

As per law experts, the interim relief amounts to final relief and allowing appeals which is beyond the jurisdiction and authority conferred unto the appellate tribunals.