| Case ID |
16b455c1-6982-486f-b83b-ad984129a0a4 |
| Body |
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| Case Number |
Customs Reference No. 6 of 2007 |
| Decision Date |
May 20, 2008 |
| Hearing Date |
|
| Decision |
The Lahore High Court directed the authorities to release the vehicle within thirty days from the date the order was conveyed, after charging 100% duties and taxes on the value declared and accepted in foreign currency at the time of importation of the vehicle in terms of S.R.O. 447(I)/2004, dated 12-6-2004. This decision was based on the affirmation that the declared value at the time of import was properly assessed and supported by all necessary documents, negating any justification for the Revenue Authorities to reject or enhance the imported value for duty and tax purposes. The court concluded that there was no legal basis for the authorities to reassess the vehicle's value at the market rate prevailing at the time of sale, as the concession granted under the S.R.O. clearly stipulated duties and taxes based on the imported value at the time of importation. |
| Summary |
In the landmark case adjudicated by the Lahore High Court on May 20, 2008, Customs Reference No. 6 of 2007, MESSRS TRADECOM PAKISTAN (PVT.) LTD. through its Executive Deputy Director (Finance) challenged the assessment made by the Deputy Collector Customs, CFS Dry Port. The core issue revolved around the proper assessment of duties and taxes on a vehicle imported under diplomatic privileges as per S.R.O. 447(I)/2004. The petitioner contended that the customs authorities erroneously assessed the imported value of the vehicle, leading to incorrect duty and tax charges.
The court meticulously examined the declarations made at the time of importation, emphasizing that the declared value of US $27,000 C&F, supported by all requisite documentation, was duly accepted by the Customs Authorities without any justification to alter it. The High Court referenced the Customs Act, 1969, specifically Section 80, to assert that the duties and taxes should be levied based on the imported value at the time of importation, not the market value at the time of sale.
Judges Nasim Sikandar and KH. Farooq Saeed underscored that since the vehicle was sold within three years of importation under the stipulated concessions, it was mandatory to charge 100% duties and taxes on the declared value as per the prevailing exchange rates at the time of import. The court dismissed the Revenue's arguments to enhance the vehicle's value, highlighting the absence of any legal provision that permitted such reassessment without valid reasons like dishonest misdeclaration or error.
Furthermore, the judgment referenced relevant case law, including Syed Waqar Ashraf v. Secretary to the Government of Pakistan, reinforcing the principles of fair assessment and the non-applicability of provisional assessments in the absence of statutory conditions under Section 81 of the Customs Act. The court's decision mandated the release of the vehicle post the appropriate duty and tax charges, ensuring adherence to the legal frameworks governing customs assessments.
This case is pivotal in clarifying the obligations of Customs Authorities in accurately assessing declared values and upholding the concessions provided under specific S.R.Os. It serves as a benchmark for future cases involving duty and tax assessments on imported goods under preferential terms, ensuring that legal provisions are meticulously followed to prevent arbitrary or unjustified financial impositions on entities. |
| Court |
Lahore High Court
|
| Entities Involved |
MESSRS TRADECOM PAKISTAN (PVT.) LTD.,
DEPUTY COLLECTOR CUSTOMS, CFS DRY PORT
|
| Judges |
Nasim Sikandar,
KH. Farooq Saeed
|
| Lawyers |
Mian Abdul Ghaffar,
Izhar ul Haq Sheikh
|
| Petitioners |
MESSRS TRADECOM PAKISTAN (PVT.) LTD. THROUGH EXECUTIVE DEPUTY DIRECTOR (FINANCE)
|
| Respondents |
DEPUTY COLLECTOR CUSTOMS, CFS DRY PORT AND ANOTHER
|
| Citations |
2008 SLD 1038,
2008 PTCL 492,
2008 PTD 1482
|
| Other Citations |
Syed Waqar Ashraf v. Secretary to the Government of Pakistan Ministry for Finance, Economic Affairs, Statistics and Revenue (Revenue Division) Lahore and 3 others Writ Petition No. 17292 of 2005 fol.,
Collector of Customs (Appraisement) Karachi v. Messrs Automobile Corporation of Pakistan (2005 PTD 2116),
W.P. No.17292 of 2005,
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Customs Act, 1969
|
| Sections |
80
|