KARACHI: In a series of events that could adversely impact post clearance audit regime, the Sindh High Court (SHC) has acknowledged the assistance provided by Director PCA South, Mr. Sheeraz Ahmed, in a complex legal matter concerning the audit of M/s Inter Market International. This Karachi-based importer, known for operating as an EFS user of iron and steel scrap imports.
What started as a regular audit by PCA South quickly escalated when M/s Inter Market International filed Suit No. 316 against these audit proceedings. While the single bench of SHC issued an interim order preventing “coercive action,” it did not halt the ongoing audit process conducted by the PCA Directorate.
However, the importer’s reluctance to fully cooperate by withholding complete records, especially the crucial stock statements verifying the status of imported EFS goods, led PCA to issue a second audit notice in October 2024 while PCA team also conducted stock taking at the EFS premises. Alleging repetitive second audit for the same period through the second audit notice, the importer approached SHC again while filing another CP D 4928 of 2024 in October 2024.
Serious concerns were raised regarding the legal acceptability of initiating two simultaneous audits for the same period. SHC’s double bench, comprising Mr. Justice Agha Faisal and Justice Mr. Abdul Mobeen Lakho, summoned Director PCA South to explain the justification behind such procedural conduct.
Appearing personally at the hearing held on April 23, 2025, Mr. Ahmed offered a detailed explanation that the second audit notice was a direct consequence of the importer’s non-compliance with the first audit notice. He argued that M/s Inter Market International’s legal maneuvers were tactical delays, aimed at obstructing the audit process.
Advocate Khalid Rajpar, representing PCA South, reinforced the argument by asserting that the department would adhere strictly to legal protocols post-audit completion. Meanwhile, the importer’s apparent use of repetitive court cases to derail procedural audits was brought into sharp focus.
The SHC acknowledged the thorough brief and explanation provided by Mr. Ahmed, and the court’s commendation highlighted a crucial endorsement of PCA South’s persistence in the face of operational challenges. Ultimately, the court disposed of the petition, setting a significant precedent for future audit-related litigations. The SHC’s decision is poised to bolster confidence in the regulatory framework of post clearance audits of Pakistan Customs.