KARACHI: A two member custom appellate tribunal at Karachi allowed an appeal filed by Director, Directorate of Intelligence & Investigations, Multan through Advocate Sardar Zafar Hussain.
The appeal pertains to 113 vehicles imported as construction machinery vehicles but instead of use in projects were sold in open market.
As per details M/s H Ali Construction company, Lahore, imported a Hino Mixer Truck for use in one of its projects. However they in abuse of the Import Policy Order 2013 and 2016 causing a huge mis-appropriation of duty and taxes in violation of legal provisions of Para 9 (ii) (5) of the Import Policy Order 2013 and 2016. The case came to the fore when one of the vehicles imported was found in possession of one Bashir Ahmed S/o Gul Khan of Nowshera District. During investigations data was retrieved from PRAL and it was found that respondent company imported 113 Hino Prime Mover Trucks from MCC Muhammad Bin Qasim between 07/2016 till 04/2017.
The appellate tribunal during proceedings noted that the issue has been settled by the Supreme Court of Pakistan according to which the importing construction company cannot sell/disposed off or convert the Special Purpose vehicles. It was further found that importing company failed in providing any proof regarding lawful use of these vehicles.
The appellate tribunal held that charges leveled in the Show Cause Notice stands established. It sets aside order in original allowing the appeal.
In a related appeal filed by M/s H Ali Construction Company against Collector of Custom Adjudication II Karachi and Director of DIT Faisalabad pertaining to import of 22 Concrete Transit Mixer. The appeal impugned a judgment which allowed a recovery of 23.828 million rupees besides penalty of Rupees 500,000.
The tribunal held a detailed hearing in which department was represented by Sardar Zafar Hussain Advocate. The tribunal held that it do not agrees to the argument that a case can be made only after such a vehicle is seized by the department. The tribunal further held that as per pronouncements by the Apex Court, the department can requisite information under section 26 and 187 of the Customs Act 1969 about such vehicles cleared by the department to confirm that imported vehicles are not sold and are being used by the importing company for its own projects.
The tribunal upheld the order passed by the Collector Adjudication and dismissed the appeal.