| Case ID |
0252da25-57ac-40ad-ae1d-e69fb03b9262 |
| Body |
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| Case Number |
Custom Appeal No. K-536 of 2017 |
| Decision Date |
Dec 20, 2018 |
| Hearing Date |
Sep 17, 2018 |
| Decision |
The Customs Appellate Tribunal allowed the appeal filed by Messrs MF Enterprises, Karachi against the order passed by the Additional Collector of Customs regarding the misdeclaration of weight of imported goods. The Tribunal ruled that the addition of the weight of essential/non-essential packing material to the declared weight of the goods was erroneous and constituted double taxation. It emphasized that the burden of proof rested on the Customs Authorities to establish that the costs for packing were incurred and not included in the price paid. The Tribunal vacated the show-cause notice and directed the issuance of a delay and detention certificate for the refund of accumulated charges, highlighting the importance of adhering to the law in customs valuation. |
| Summary |
This case revolves around the appeal of Messrs MF Enterprises against the decision of the Additional Collector of Customs regarding the misdeclaration of weight for imported shaving blades. The Tribunal found that the Customs Authorities incorrectly added the weight of packing materials to the declared weight of the goods, violating the provisions of the Customs Act. The judgment emphasized the distinction between the weight of goods and packing materials, reinforcing the principle that taxes should only be levied on the actual goods imported. This case highlights crucial issues in customs valuation, the burden of proof, and the legal standards set forth in various tax laws, making it a significant ruling for importers and customs officials alike. The decision underscores the need for adherence to legal standards in customs valuation to prevent wrongful taxation and financial loss to businesses. |
| Court |
Customs Appellate Tribunal
|
| Entities Involved |
Messrs MF Enterprises, Karachi,
MCC of Appraisement-East, Karachi
|
| Judges |
Jehanzaib Wahlah
|
| Lawyers |
Nadeem Ahmed Mirza,
Imran Saifi
|
| Petitioners |
Messrs MF Enterprises, Karachi
|
| Respondents |
The Deputy Collector, Group-V, MCC of Appraisement-East, Karachi and Another
|
| Citations |
2020 SLD 404 = 2020 PTD 454
|
| Other Citations |
1992 PTD 593,
2003 PTD (Trib.) 928,
2010 PTD 1515,
2009 PTD (Trib.) 2025,
2017 PTD 196,
2010 SCMR 1425,
2003 PTD 1275,
2005 PTD 480,
2003 88 Taxation 128,
2002 MLD 130,
2002 MLD 180,
2001 CL 558,
1992 SCMR 1898,
2013 PTD 813
|
| Laws Involved |
Customs Act, 1969,
Income Tax Ordinance, 2001,
Sales Tax Act, 1990,
Qanun-e-Shahadat (10 of 1984)
|
| Sections |
3,
11,
117,
32,
6,
7,
33,
156(1)(14),
34,
148,
121,
180,
3,
5,
25A,
25(2),
162,
162(1)
|