KARACHI: Member Judicial-II Karachi Tahir Zia and Member Technical-II Karachi Mohammad Nazim Saleem both representing the same bench, have developed a dispute among themselves in the petition; now chair of the tribunal would appoint a referee member to hear and decide the points of difference.
According to details petitions were filed by M/s Rehmat Ali Ltd Afghanistan and M/s Nawi Taj Shinwari Ltd Afghanistan approached the tribunal against the penalties imposed on them by the hierarchy of customs, as the importers had concealed the contents of the consignment destined to Afghanistan via transit trade.
The importers imported consignments from Singapore declared to be soaps, LED TVs, Radio and Blank CD-R. After the allotment of number to the DGs, the appraiser concerned opted for examination. Upon examination, it was found the consignment contained 23 items instead of declared 04 items.
The importers and their clearing agents were charged and the Adjudication ordered outright confiscation of goods along with penalty of Rs50,000 each on importers and clearing agents.
The importers approached the Tribunal. After deliberations Member Judicial Tahir Zia vacated the show cause notice and declared the orders passed by Adjudication and Collector Appeals being void ab initio.
However, Member Technical Mohammad Nazim Saleem noted stringent and deterrent penalty has been prescribed for making untrue declaration relating to transit goods or concealing transit goods. In the instant case, 19 items out of total 23 items were not declared which means that they were deliberately concealed by the importer with the help of clearing agent.
The motive behind concealing 19 items and making untrue declaration can be either to retain them in Pakistan without payment of duty/taxes chargeable thereon, or to show less amount of import levies (duty/taxes) than due, to the insurance company so that less amount of premium could be paid to them.
It is important to mention here that the purpose for requirement of financial security is to cover/ safeguard import levies (duty and taxes) chargeable on transit goods.
It is suffice to say that the history of Afghan Transit Trade right from its inception in 1964 is riddled with complaints that most of the goods never crossed Pak-Afghan border and are retained in Pakistan. Nazim Saleem upheld the show cause notice and subsequent penalties and confiscation of goods.
Chairman would now appoint a Referee member to decide the case.
It may be mentioned here that Member Tahir Zia in two earlier petition heard by single bench have vacated show cause notices and subsequent penalties in two identical cases earlier. Directorate General of Transit Trade has challenged both of these orders before the High Court.