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SHC declares SCN mandatory before taking any adverse action

SHC declares SCN mandatory before taking any adverse action

KARACHI: The Sindh High Court (SHC) directed petitioner to submit goods declaration before the concerned collector of customs who shall process the same strictly in accordance with law, whereas, in case of any mis-declaration, respondents shall issue proper show cause notice to the petitioner before taking any adverse action, including registration of FIR on petition filed by M/s Sawhney Associates.

On June 22, 2019, a two-member bench, headed by Justice Aqeel Ahmed Abbasi issued notices to the customs department directing them to file their comprehensive para wise comments for next date of hearing.

During the hearing, counsel for the petitioner stated that this petition is filed against the high-handedness of the respondents whereby the respondent collectorate, without issuing show cause notice and adjudication process, forced the petitioner to make payment of Rs6,843,000.

He argued that the petitioner imported previous consignments and declared the value at about $10,000 which were not accepted by the clearance collectorate and the same was assessed at an enhanced value of around $40,000 and after payment of duty and taxes, the consignments were released but to dismay of the petitioner, after clearance of the consignment the respondents forced the petitioner to make payment of Rs3,443,000 in the shape of pay orders and Rs34,00,000 in the shape of PDC on the pretext that the respondents have procured higher invoice from shipping lines and that the failure to deposit the aforesaid amount would incur initiation of criminal proceedings against the petitioner.

Citing chairman Federal Board of Revenue, Collector of Customs Appraisement East and others as respondents, petitioner pleaded the court to declare that entire exercise of the respondents as illegal and the demand can only be raised after adjudication process which involves issuance of show cause notice and adjudication process thereof.