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SHC seeks comments on petition challenging VR No. 1227/2017

SHC seeks comments on petition challenging VR No. 1227/2017

KARACHI: The Sindh High Court (SHC) directed customs officials to file their para wise comments on a constitutional petition filed by M/s Spirit Industries Private Limited seeking consignments of imported particle board EI grade which was detained by customs officials due to demanding duties and taxes on the basis of serial no 1 of the Valuation Ruling No 1227/2017 dated 30/11/2017. On July 1, 2019, a two-member bench, headed by Justice Aqeel Ahmed Abbasi heard the matter.

During the hearing, counsel for the petitioner stated in his constitutional petition that petitioner being one of the renowned manufacturers of furniture is engaged in manufacturing under the sales tax act, 1990 and is seriously aggrieved and highly prejudiced by the action of the respondents, whereby the respondents are assessing the imported consignment of particle board EI grade and demanding duties and taxes on the basis of serial no 1 of the Valuation Ruling No 1227/2017 dated 30/11/2017.

He argued that petitioner vide letter dated May 18, 2019 apprised the respondents about the imports and emphasized on the assessment on realistic prices against the particle board as the current valuation ruling being applied suggested values at $0.26/kg and the petitioner imported its consignments against letter of credit at a value of Rs0.20/kg.

He argued that petitioner’s imported goods are continuously arriving at port and same are urgently required by the petitioner for its production requirements specially meeting the commitments made with its buyers and has exercised all the efforts to convince the respondents and its subordinate officers to allow release of the raw materials provisionally under section 81 of the Customs Act, 1969 but to no avail.

Citing secretary Revenue Division, collector of Customs East, West and DG Valuation as respondents, petitioner pleaded the court to declare that the act of the respondents of applying fake and stale values on the basis of old Valuation Ruling 1227/2017 at $0.26/kg as illegal and unlawful and further liable to be revised. He further pleaded the court may direct them to release his consignments immediately as per law.