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Customs Appellate Tribunal rejects appeal in Indian raw cotton import case

Customs Appellate Tribunal rejects appeal in Indian raw cotton import case

LAHORE: Customs Appellate Tribunal has dismissed the appeals filed by the M/s Salman Nauman Enterprises Limited against Additional Collector of Customs (Preventive), LFU, Lahore and Additional Collector of Customs, Collectorate of Customs Adjudication AFU Lahore.

Member Judicial Omer Arshed Hakeemn Bench-II heard the case where the counsels for both the parties gave their respective arguments. The tribunal member remarked that it could not be legally conceived that the impugned claimed exemption had by way of proposition a curative effect over erstwhile withdraw zero rating under some other SRO (1125(I)/2011).

As per brief history of case, M/s Salman Nauman Enterprises Limited had imported consignment of Indian raw cotton and sought clearance vide GD No 19739 and claimed benefits of Sales Tax SRO 1125 (I)/2011 for the payment of sales tax 2 percent instead of 16 percent.

Later on, during the course of audit, it was observed that the said consignment was liable for the payment of 16 percent sales tax not for 2 percent and sales tax was charged by the authorities.

After the show cause notice, adjudication proceeding were culminated and Order-in-Original passed for the recovery of default surcharge for amount Rs25,20,621 with penalty of Rs15,000.

Being aggrieved from the order, the ONO was challenged before the Customs Appellate Tribunal on the grounds that the ONO not passed on legal grounds and liable to set aside. The same allegations was denied by the respondent party.

After hearing the arguments Customs Appellate Tribunal dismissed the appeal and informed the parties about the decision.