Const. P. 3340/2025 (D.B.) Sindh High Court, Karachi

Sindh High Court · 2025 · Before Zulfiqar Ali Sangi

i. Declare that no demand or recovery of custom duty and taxes can be made or enforced by the Officers of the Respondents through impugned Assessment or the Assessment Note, without exhaustion of at least one appeal by an independent judicial forum outside the hierarchy of department and without providing an opportunity of hearing to the Petitioner on its appeal and stay application. ii. Direct the Respondents to release the subject consignment on securing the differential amount of duty and taxes in the shape of pay order / bank guarantee before the Nazir of this Honorable Court, during the pendency of the appeal before Respondent No 5.

2. Case of the Petitioner is that it is a private limited company engaged in the business of sale and import of cosmetic and beauty products. That the Petitioner imported cosmetic goods to Pakistan. On arrival of the imported goods at Karachi port Company filed goods declaration No KAPW-HC-1952 dated 03.07.2025 required under section 79 of the Customs Act 1969 (TCA). The declaration was selected for scrutiny and authorized officer examined the consignment and Goods Declaration was forwarded for assessment under section 80 of TCA. The Officer of the Customs assessed the goods under valuation ruling No 1606 of 2022 dated 02.03.2022 rather than the valuation method prescribed under section 25 of TCA which resulted in levy of duty and tax. The consignment of the Petitioner was covered under exception clause for payment of duty and tax. Petitioner filed 1 an appeal section 193 of TCA before Respondent No 5 against the assessment and volunteered to clear the consignment by depositing the amount determined under provisional assessment but Respondent refused to release the consignment, hence this Petition.

3. Mr. M. Inzimam Sharif Learned Counsel for the Petitioner contended that the determination of amount of duty and taxes on imported goods through final assessment dated 07.07.2025 issued by the Customs Authorities was arbitrary, illegal, without any lawful authority and purely on account of misapplication of law. The imported goods were covered by exemption of tax and duty tendered by the government but assessment officer failed to apply the correct valuation reading and assessed the tax and duty beyond the provisions of section 25. Petitioner filed appeal before Respondent No 5, which has been allowed and matter has been referred back for fresh assessment but the Respondents are not releasing the imported goods. He prayed for allowing the Petition.

4. Mr. Sardar Zaffar Hussain Learned Counsel for the Respondents controverting the stance of Petitioner submitted that the imported goods were not covered under exemption of duty and tax. He contended that assessment of tax and duty was rightly done. He contended that the goods of the Petitioner were not detained, Company might get clearance of the goods subject to the payment of assessed amount. He prayed for dismissal of the Petition.

5. Heard Arguments, Perused material available on record.

6. Examination of the record transpired that the Petitioner imported the consignment and filed Goods Declaration under section 79 of TCA raising claim that the goods imported by the Company were cover…

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