| Case ID |
3cebadf5-dc7f-435b-8ee7-04e9752e3d31 |
| Body |
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| Case Number |
Custom Appeal No. K-24 of 2017 |
| Decision Date |
Jul 15, 2017 |
| Hearing Date |
Jul 11, 2017 |
| Decision |
The Customs Appellate Tribunal, presided by Member Tahir Zia, judicial-II, reviewed the appeal filed by Messrs Tariq Auto Traders against the Assistant Director of the Directorate General of PCA and two other respondents. The Tribunal meticulously examined the claims related to mis-declaration under the Customs Act, 1969, specifically sections 25, 25A, 26A, 80, and 83. Upon thorough analysis of the evidence and legal provisions, the Tribunal upheld the appellant's arguments, determining that the show-cause notice and the subsequent orders were procedurally flawed and lacked substantive evidence. Consequently, the Tribunal vacated and set aside the impugned order, effectively ruling in favor of the appellant and dismissing the allegations of mis-declaration. |
| Summary |
In the landmark case of Messrs Tariq Auto Traders, Karachi versus the Assistant Director Directorate General of PCA and two others, the Customs Appellate Tribunal delivered a pivotal decision on July 15, 2017. This case, cited as 2018 SLD 2220 and 2018 PTD 2132, revolved around allegations of mis-declaration under the Customs Act, 1969, specifically sections 25, 25A, 26A, 80, and 83. The appellant, represented by Nadeem Ahmed Mirza, contested a show-cause notice issued by the Directorate General of PCA, which accused them of erroneously declaring the PCT of imported goods to evade customs duties and taxes. The Tribunal, under the judicious oversight of Judge Tahir Zia, meticulously analyzed the procedural and substantive aspects of the case. Central to the Tribunal's decision was the assertion that the audit conducted by the respondent lacked proper procedural compliance, notably the absence of a formal notice or summon in accordance with Section 26A of the Customs Act. Furthermore, the Tribunal highlighted the jurisdictional overreach by the respondent, emphasizing that the Collector of Customs is solely empowered to handle appeals under Section 193 of the Act, rendering the respondent's actions void ab initio. The Tribunal also scrutinized the misuse of sections related to the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001, pointing out the respondent's lack of authority to adjudicate on matters beyond their jurisdiction. Citing numerous precedents, including PLD 1971 Supreme Court 61 and various PTD and SCMR references, the Tribunal reinforced the principles of lawful jurisdiction and procedural fairness. The decision underscored the necessity for regulatory authorities to adhere strictly to legislative mandates, ensuring that due process is upheld in all customs and taxation proceedings. By vacating the show-cause notice and setting aside the impugned order, the Tribunal not only vindicated the appellant but also set a significant precedent reinforcing the boundaries of administrative authority within customs law. This judgment serves as a crucial reference for future litigations involving customs duties, mis-declarations, and the procedural obligations of regulatory bodies. It underscores the importance of adhering to statutory procedures and the limited scope of authority vested in customs officials, ensuring that business entities are protected against arbitrary administrative actions. The case is a testament to the Judiciary's commitment to upholding justice and procedural integrity in the realm of customs and taxation law, providing clarity and direction for both regulatory authorities and the business community alike. |
| Court |
Customs Appellate Tribunal
|
| Entities Involved |
Federal Board of Revenue,
MESSRS TARIQ AUTO TRADERS, KARACHI,
ASSISTANT DIRECTOR DIRECTORATE GENERAL OF PCA
|
| Judges |
TAHIR ZIA
|
| Lawyers |
Nadeem Ahmed Mirza for Appellant,
Azhar Abbas, A/O/ D/R for Respondents
|
| Petitioners |
MESSRS TARIQ AUTO TRADERS, KARACHI
|
| Respondents |
ASSISTANT DIRECTOR DIRECTORATE GENERAL OF PCA AND 2 OTHERS
|
| Citations |
2018 SLD 2220,
2018 PTD 2132
|
| Other Citations |
2002 PTD 2457,
PLD 1971 Supreme Court 61,
PLD 1973 Supreme Court 236,
E.A. Avans reported as PLD 1964 SC 536,
SBLR 2002 Karachi 5,
2006 SCMR 838,
2003 SCMR 1505,
2006 SCMR 129,
PLD 1996 Karachi 68,
2006 PTD 978,
PLD 1971 Supreme Court 184,
2002 MLD 4310,
2014 PTD 1733,
2007 PTD 250,
2008 PTD 1973,
2011 PTD 110,
2010 PTD 2086,
2016 PTD 702,
2016 PTD 969,
2016 PTD 1008,
2016 PTD 2125,
K-1635/2014,
K-1029/2016,
K-1030/2016,
K-1343/2015,
2017 PTD 481
|
| Laws Involved |
Customs Act, 1969
|
| Sections |
25,
25A,
26A,
80,
83
|