239/2014 Spl. Cus. Ref. A. Collector of Customs (Applicant) V/S M/s. Lake View Forest (Pvt) Ltd. (Respondent)
Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author), Hon'ble Mr. Justice Agha Faisal
Order Date: 23-AUG-21
-The scheme of the Customs Act reveals that the subject is governed in terms of Section 25 of the Customs Act and in case it could not be determined under Section 25, then the recourse is available by applying valuation ruling if available in terms of Section 25-A whereafter it is finalized under the Customs Act, 1969. After the assessment and the release of the consignment, the goods are made out of any charge of the Customs. In case the aforesaid process is required to be revisited, (in appropriate cases), the mechanism is available under the law such as Section 32, 193 and 195 of the Customs Act, 1969. --The event of post scrutiny of the goods declaration after assessment and release of goods, is not covered by Section 80(3), as undertaken. It is applicable at the time of original checking of the goods declaration in his hands and goods are yet to be assessed and released and not at belated stage when even the goods have been released. This situation (for appropriate cases) is catered by Section 32, 193 and 195 of the Customs Act, 1969 where under a show cause and/or an appeal within 30 days could have been preferred, or the Board or the Collector of Customs or the Collector of Custom (Adjudication) may, within his jurisdiction, call for the examination of the records of any proceedings under the act for the purpose of satisfying itself as to the legality or propriety of any decision or order passed by a subordinate officer respectively, could have been followed, however, none of them were invoked. Surprisingly the applicant opt to invoke Section 80(3) of the Customs Act which is then shown to have been followed by consequences. It is thus under above referred provisions when the competent authority is of the view that the assessment was not made in accordance with law, the past and closed transaction could be reopened but not in the manner as done in the instant case. Prima-facie it is neither a case of mis-declaration as correct PCT was claimed by the consignee nor this is a case of mis-declaration in terms of its value declared, to make out a case under Section 32 of the Act. --- Without prejudice applicants case is that Section 80(3) of Act was rightly invoked under the given facts and circumstances. In the instant case, if at all, there was any illegality in the assessment of the goods, it could be attributed to the sub-ordinate officers of the Customs and hence the implication of Section 32 of the Customs Act, 1969 would not be attracted to penalize the respondent or their directors. The purported action by Customs was triggered under Section 80(3) of the Customs Act, 1969 does not have a legal cover in view of the goods being out of charge and the recourses which could have been made were under Section 32, 193 and 195 of the Customs Act, 1969 which were not directly invoked.Full judgment text for this case is not yet available on Pakistan Law Reports. Check the official Sindh High Court case law portal for the complete order.
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