KARACHI: A Special Custom Reference Application filed by Directorate of Intelligence & Investigations (DIT) against Shahid Hussain, possessor of foreign origin assorted sofa/curtain cloth weighing 3910 kilograms allegedly smuggled and non duty paid, was allowed by a Custom Appellate Bench of High Court of Sindh. Khalid Mehmood Rajpar advocate represented the applicant department while respondent was represented by Amjad Hayat Advocate.
As per details customs conducted a raid at a gowdown in Manzoor Colony Karachi after obtaining a search warrant. The owner/possessor Shahid Hussain failed to produce document in support of lawful import/possession of recovered foreign origin sofa/curtain cloth. The customs then issued a notice under section 26 of the Customs Act against which the respondent filed a letter along with photocopies of four invoices issued by M/s Royal Textiles, Karachi in favor of Shahid Hussain suggesting that the recovered goods were purchased locally. The said possessor later during Adjudication Proceedings also filed copies of three Goods Declaration to establish that recovered fabric was legally imported.
The Adjudicating Officer ruled in favor of the department on ground that respondent has taken two different stances and was unable to discharge burden of proof in respect of impugned goods.
The respondent filed an appeal before the Custom Appellate Tribunal challenging the Order in Original which was allowed on ground that demanding import documents from a local supplier is detrimental to the business.
The DIT challenged the said order of tribunal in instant SCRA framing the question of law that whether the respondent has not failed to successfully discharge burden of proof of lawful possession in respect of the impugned cloth as envisaged under clause(89) of sub-section (1) of Section 156 of the Customs Act 1969.
The SHC custom bench after hearing the sides in detail, set aside the order of the tribunal.