| Case ID |
2031d2ab-117e-43bd-859f-4c6e644ec4fb |
| Body |
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| Case Number |
Customs Appeal No. K-722 of 2017 |
| Decision Date |
Mar 22, 2022 |
| Hearing Date |
Mar 09, 2022 |
| Decision |
The Customs Appellate Tribunal set aside the Order-in-Revision No. 329/2017 dated 14.04.2017, which had rejected the appellant's revision application while maintaining Valuation Ruling No. 1000/2016. The Tribunal found that the respondent failed to consider the relevant documents submitted by the appellant, which included bank statements, sales invoices, and correspondence with the exporter. The respondent's order was deemed to lack sufficient reasoning and did not meet the criteria of a judicious order, thus failing the test of judicial scrutiny. The Tribunal directed the respondent to issue a new valuation ruling based on the accurate facts and values pertinent to the relevant period, in accordance with the provisions of the law. |
| Summary |
The case of Mondelez Pakistan Limited against the Directorate General of Customs revolves around the valuation of imported goods under the Customs Act, 1969. The Tribunal found that the respondent did not adequately address the appellant's grievances and failed to substantiate the customs valuation ruling with logical reasoning. The lack of a speaking order and the failure to consider the appellant's supporting documents led to the conclusion that the valuation method used was improper. The Tribunal emphasized the importance of following the sequential methods laid out in the Customs Act and noted that the substantial increase in customs value posed a significant threat to the appellant's business viability. This case highlights the critical need for customs authorities to engage in a transparent and fair evaluation process, ensuring that all stakeholders are given due consideration and opportunity to present their case. The ruling reinforces the importance of compliance with the principles of natural justice and proper administrative procedures in customs valuation matters. |
| Court |
Customs Appellate Tribunal, Karachi
|
| Entities Involved |
Mondelez Pakistan Limited,
Directorate General of Customs
|
| Judges |
ABDUL JABBAR QURESHI,
MUHAMMAD IQBAL BHAWANA
|
| Lawyers |
Muhammad Shahrukh Farogh Naseem,
Naeem Butt
|
| Petitioners |
Messrs Mondelez Pakistan Limited
|
| Respondents |
THE DIRECTOR, DIRECTORATE GENERAL OF CUSTOMS (VALUATION), CUSTOM HOUSE, KARACHI
|
| Citations |
2023 SLD 2317,
2023 PTD 1810
|
| Other Citations |
Sadia Jabbar v. Federation of Pakistan 2018 PTD 1746,
Rehan Omer v. Collector of Customs Karachi 2006 PTD 909,
Messrs Toyo International Motorcycle v. Federation of Pakistan and 3 others 2008 PTD 1494,
Najam Impex Lhr v. Assistant Collector of Customs, Karachi and others 2008 PTD 1250,
Faco Trading Company v. Members Custom, Federal Board of Revenue and others 2013 PTD 825,
Goodwill Traders, Karachi v. Federation of Pakistan 2014 PTD 176
|
| Laws Involved |
Customs Act, 1969,
Customs Rules, 2001
|
| Sections |
25,
25D,
25(5),
25(6),
25(7),
25(8),
107(a),
121
|