KARACHI: The Directorate of Customs Valuation has approached the Sindh High Court, contesting the order issued by the Customs Appellate Tribunal.
On the directives of Director Valuation Tahir Qureshi, Additional Director Ghulam Nabi Kamboh pursued the case and prepared the submission for the High Court. Advocate Sardar Zafar represented Customs Valuation before the Court.
The case revolves around the valuation of Uncoated Offset Paper for writing, printing, and photocopying, along with Non-Carbon Releasing Paper and Art Card/Paper.
The Directorate initially set the customs value for these items on May 27, 2021, under Section 25(A) of the Customs Act, 1969, via Valuation Ruling No. 1532/2021 and 1534/2021.
This decision was challenged by various stakeholders, who called for a reassessment based on international market values. Several consultation meetings were held, but stakeholders failed to provide the requested documentary evidence.
In the interim, a respondent filed a complaint with the Federal Tax Ombudsman (FTO) on October 13, 2022, claiming to represent multiple foreign manufacturers. They argued their transactional values were higher than those determined by the Directorate and denied any involvement in under-invoicing.
Despite ongoing consultations, the FTO instructed the Directorate to provide a hearing opportunity, leading to an order issued by the Director on April 5, 2023. The respondent then filed an appeal with the Director General, who upheld the initial valuation rulings in July 2023. Subsequently, the Customs Appellate Tribunal overturned both orders in March 2024, leading the Directorate to seek redress in the Sindh High Court.
The Directorate argues that the Appellate Tribunal acted without jurisdiction and failed to recognize the consistency of the original rulings with the Customs Act, 1969. They contend the Tribunal’s decision contravenes the principle of equality under Article 25(1) of the Constitution of Pakistan, and introduces an unjustifiable deviation from established uniformity.
It may be mentioned here that all the members of Tribunal have retired and they passed this decision right before their retirement.
The Directorate is requesting the Sindh High Court to set aside the Tribunal’s order from March 28, 2024, deeming it legally flawed and based on an incorrect interpretation of law and relevant rules.