MUHAMMAD SHAFI SIDDIQUI, J.---The show-cause notices issued somewhere in December , 2012 disclosed that in scrutiny it was found that the respondents imported stainless steel sheets/coils (magnetic) 400 series and the goods were released by the customs officials and while the goods were released a short payment of duties and taxes belatedly was unveiled/exposed as the Valuation Ruling applicable at the relevant time in terms of Section 25-A of Customs Act, 1969 was not applied. The recourse of Sections 32 and 32(3A) of Customs Act, 1969, was then followed, punishable under clause 14 of Section 156(1) of the Customs Act, 1969 was adopted.
The show-cause notice was resulted into passing of Order-in-Original on 22.6.2013 against the respondents which order-in-original was then assailed before the Collector of Customs Appeals. The appeal was decided in favour of the applicants vide order-in-appeal dated 6.11.2013 which order-in-appeal was then assailed before the Customs Appellate Tribunal, Karachi. The Tribunal vide judgment dated 28.10.2014 allow ed the appeal in favour of the respondents by reversing the findings of the Collector of Customs Appeals.
The questions of law proposed by the applicant are as under:- 1). Whether the learned Appellate Tribunal has erred in law not to consider that the Valuation Ruling No.Misc./25/2007-IV -A/371 1 dated 10-12-2007, reviewed on 01-09-2008 which was issued by the competent authority by virtue of the powers conferred under Sections 25-A and 25-D of the Act, hence, had the legal implication to be implemented across the board in letter and spirit?
2). Whether the learned Appellate Tribunal has erred in law not to consider that the Valuation Ruling was not issued for the specific period, whereas the same was applicable till it is reviewed by the competent authority in terms of Section 25-D of the Act, moreover , the provision of subsection (4) of Section 25 of the Act, confirms the afore stated position?
3). Whether the learned Appellate Tribuna l has erred in law not to consider that the provisions of Section 32(3A) of the Act has been inserted in the Custo ms Act, specifically to give the legal coverage to audit including post importation audit to recover the short levied Government dues in relevant cases, moreover , the provision of Section 3DD of the Act, and Section 32(3A) of the Act, prescribe for conducting audit?
4). Whether the learned Member (Judicial) of the Honourable Appellate Tribunal sitting Single has right to decide a technical and valuation issue involved in the instant case without the association of Member (T echnical)?
5). Whether in view of the established facts and relevant provisions of law, the findings of learned Appellate Tribunal are not perverse for non-reading of the available record to the detriment of revenue and the consequent benefit to the respondent importer , who has made an attempt to deprive the Government from its legitimate revenue?
We have heard learned counsel and perused the materials available on record.
The respondents in these references have imported a number of consignments during 09-04-2010 to 18-06-2010 as recorded in para 9 of the impugned judgment. The insistence of the applicant' s counsel for the applicability of referred Valuation Ruling is taken into consideration in light of Section 25-A of the Customs Act, 1969 in its original form.
Section 25-A then substituted by Finance Act, 2007 assented on 30 June 2007 for its applicability with effect from 1st July, 2007. For the purpose of present - proceedings subsection (4) of Section 25-A pressed into service, however , this subsection (4) was inserte d by Finance Act, 2010 assented on 30 June, 2010 with its applicability w.e.f. 1st July , 2010. Subsection (4) of Section 25-A is reproduced as under: "(4) The customs value determined unde r subsection (1) or, as the case may be, under subsection (3), shall be applicable until and unless revised or rescinded by the competent authority ."
As discussed above, the goods declaratio n for the release of the consignments were filed prior to the insertion of subsection (4) of Section 25-A. Learned counsel for the applicant does not controvert these facts. Thus at the relevant time when the goods were cleared and/or goods declarations were filed, benefit of subsection (4) of Section 25-A was not available with the applicant for enforcing earlier Valuation Ruling dated 10.12.2007 which was reviewed on 1.9.2008 issued by the competent authority under Sections 25-A and 25-D of the Act. Undoubtedly before insertion of subsection (4) the continuity of an earlier time lapsed Valuation Ruling could not have been enforced. In the earlier regime, the value of goods imported was required to be assessed on the basis of 90 days data prior or after the import. The goods were imported much beyond the period mentioned above. In the earlier regime they should have either issued fresh Valuation Ruling or should have endorsed, reasons for continuity of the earlier Valuation Ruling which is not the case of the applicant. It was only in subsection (4) that it was clarified for continuity of existing Valuation Ruling until and unless revised or rescinded by the competent authority . For the convenience of such recourse the depar tment applied sequential method of Section 25 which was acceptable in the previous regime prior to the amendment carried out in terms of insertion of subsection (4) under Section 25-A.
We are afraid that subsection (4) could not be pressed into service in respect of consignments which were imported in earlier regime i.e. in between 09-04-2010 to 18-06-2010 as mentioned in para 9 of the impugned order to which . no challenge was made. The only question arises, is whether the learned Appellate Tribunal has erred in law not to consider the Valuation Ruling No.Misc./25/2007-IV -A/371 1 dated 10-12-2007, reviewed on 01-09-2008 which was issued by the competent authority by virtue of the powers conferred under Sections 25-A and 25-D of the Act. The answer to the above question is in Negative in favour of the respond ents and against the applicant.
Copy of this order under the seal of this court be sent to the Appellate Tribunal in terms of Section 196(5) of the Customs Act, 1969.
ANNEXURE A S.No. CASE NO CASE TITLE
1. Special Customs Reference Application (D) 949 of 2015Collector of Customs v .
Messrs Muhammad Shahid Ladha
2. Special Customs Reference Application (D) 950 of 2015Collector of Customs v .
Messrs G.H. Traders
3. Special Customs Reference Application (D) 951 of 2015Collector of Customs v .
Messrs Maqsood Traders
4. Special Customs Reference Application (D) 952 of 2015Collector of Customs v .
Messrs Mudassar Naseem Butt
5. Special Customs Reference Application (D) 953 of 2015Collector of Customs v .
Messrs Rhein Enterprises
6. Special Customs Reference Application (D) 954 of 2015Collector of Customs v .
Messrs Classical Metal Trading Co.
7. Special Customs Reference Application (D) 955 of 2015Collector of Customs v .
Messrs Classical Metal Trading Co.
8. Special Customs Reference Application (D) 956 of 2015Collector of Customs v .
Messrs Faiz Traders
9. Special Customs Reference Application (D) 957 of 2015Collector of Customs v .
Messrs Faiz Traders
10. Special Customs Reference Application (D) 958 of 2015Collector of Customs v .
Messrs Surgikare
11. Special Customs Reference Application (D) 959 of 2015Collector of Customs v .
Messrs Muhammad Bilal
12. Special Customs Reference Application (D) 960 of 2015Collector of Customs v .
Messrs Hassan Trader
13. Special Customs Reference Application (D) 961 of 2015Collector of Customs v .
Messrs J.S. Traders
14. Special Customs Reference Application (D) 962 of 2015Collector of Customs v .
Messrs Anwar Enterprises
15. Special Customs Reference Application (D) 963 of 2015Collector of Customs v .
Messrs Pacific Trading Co.
16. Special Customs Reference Application (D) 964 of 2015Collector of Customs v .
Messrs Razi Hussain
17. Special Customs Reference Application (D) 965 of 2015Collector of Customs v .
Messrs Awais Aziz
18. Special Customs Reference Application (D) 966 of 2015Collector of Customs v .
Messrs Pharma Packages
19. Special Customs Reference Application (D) 967 of 2015Collector of Customs v .
Messrs Zohaib Enterprises
20. Special Customs Reference Application (D) 968 of 2015Collector of Customs v .
Messrs Samina Hafeez
21. Special Customs Reference Application (D) 969 of 2015Collector of Customs v .
Messrs Al-Hayat Trader
22. Special Customs Reference Application (D) 970 of 2015Collector of Customs v .
Messrs Taufiq Ahmad
23. Special Customs Reference Application (D) 971 of 2015Collector of Customs v .
Messrs Adeel Traders
24. Special Customs Reference Application (D) 972 of 2015Collector of Customs v .
Messrs Muhammad Arif Dost
25. Special Customs Reference Application (D) 973 of 2015Collector of Customs v .
Messrs Jamil Enterprises
26. Special Customs Reference Application (D) 974 of 2015Collector of Customs v .
Messrs A.R. Enterprises
27. Special Customs Reference Application (D) 975 of 2015Collector of Customs v .
Messrs Muhammad Sanauallah Asim
28. Special Customs Reference Application (D) 976 of 2015Collector of Customs v .
Messrs Abdul Khaliq
29. Special Customs Reference Application (D) 977 of 2015Collector of Customs v .
Messrs Super Metal Traders
30. Special Customs Reference Application (D) 978 of 2015Collector of Customs v .
Messrs Mushtaq Traders
31. Special Customs Reference Application (D) 979 of 2015Collector of Customs v .
Messrs Ayub Traders
32. Special Customs Reference Application (D) 980 of 2015Collector of Customs v .
Messrs M. Zee Impex
33. Special Customs Reference Application (D) 981 of 2015Collector of Customs v .
Messrs Usman
34. Special Customs Reference Application (D) 982 of 2015Collector of Customs v .
Messrs Arsalan Enterprises
35. Special Customs Reference Application (D) 983 of 2015Collector of Customs v .
Messrs Nasir Yaqoob
36. Special Customs Reference Application (D) 984 of 2015Collector of Customs v .
Messrs Hamayun Babar
37. Special Customs Reference Application (D) 985 of 2015Collector of Customs v .
Messrs Khalid Traders
38. Special Customs Reference Application (D) 986 of 2015Collector of Customs v .
Messrs Dewan International
39. Special Customs Reference Application (D) 987 of 2015Collector of Customs v .
Messrs Abdul Shakoor Rana
40. Special Customs Reference Application (D) 988 of 2015Collector of Customs v .
Messrs Sana Industry
41. Special Customs Reference Application (D) 989 of 2015Collector of Customs v .
Messrs Sana Industry
42. Special Customs Reference Application (D) 990 of 2015Collector of Customs v .
Messrs Sana Industry
43. Special Customs Reference Application (D) 991 of 2015Collector of Customs v .
Messrs Anwar Enterprises
44. Special Customs Reference Application (D) 992 of 2015Collector of Customs v .
Messrs Adeel Traders
45. Special Customs Reference Application (D) 993 of 2015Collector of Customs v .
Messrs Adeel Traders
46. Special Customs Reference Application (D) 994 of 2015Collector of Customs v .
Messrs Adeel Traders
47. Special Customs Reference Application (D) 995 of 2015Collector of Customs v .
Messrs Luqman & Sons
48. Special Customs Reference Application (D) 996 of 2015Collector of Customs v .
Messrs Imtiaz Ahmed
49. Special Customs Reference Application (D) 997 of 2015Collector of Customs v .
Messrs M.I.S. Trading Company
50. Special Customs Reference Application (D) 998 of 2015Collector of Customs v .
Messrs Mushtaq Traders
51. Special Customs Reference Application (D) 999 of 2015Collector of Customs v .
Messrs Muhammad Ibrar
52. Special Customs Reference Application (D) 1000 of 2015Collector of Customs v .
Messrs Chaudhary Khurram
53. Special Customs Reference Application (D) 1001 of 2015Collector of Customs v .
Messrs Kashif Javed
54. Special Customs Reference Application (D) 1002 of 2015Collector of Customs v .
Messrs Al-Karam Trading
55. Special Customs Reference Application (D) 1003 of 2015Collector of Customs v .
Messrs Al-Karam Trading
56. Special Customs Reference Application (D) 1004 of 2015Collector of Customs v .
Messrs Nobel Enterprises
57. Special Customs Reference Application (D) 1005 of 2015Collector of Customs v .
Messrs Muslim Industries
58. Special Customs Reference Application (D) 1006 of 2015Collector of Customs v .
Messrs Muslim Industries
59. Special Customs Reference Application (D) 1007 of 2015Collector of Customs v .
Messrs M. Hussain Ahmed Traders
60. Special Customs Reference Application (D) 1008 of 2015Collector of Customs v .
Messrs Super Metal Traders
61. Special Customs Reference Application (D) 1009 of 2015Collector of Customs v .
Messrs Sana Industries
62. Special Customs Reference Application (D) 1010 of 2015Collector of Customs v .
Messrs Abdul W aheed Taj
63. Special Customs Reference Application (D) 101 1 of 2015Collector of Customs v .
Messrs M. Najaf Traders
64. Special Customs Reference Application (D) 1012 of 2015Collector of Customs v .
Messrs Nobel Enterprises
65. Special Customs Reference Application (D) 1013 of 2015Collector of Customs v .
Messrs Naveed Asif Butt
66. Special Customs Reference Application (D) 1014 of 2015Collector of Customs v .
Messrs Jawed Brothers
67. Special Customs Reference Application (D) 1015 of 2015Collector of Customs v .
Messrs Jawed Brothers
68. Special Customs Reference Application (D) 1016 of 2015Collector of Customs v .
Messrs King Traders
69. Special Customs Reference Application (D) 1017 of 2015Collector of Customs v .
Messrs Mushtaq Traders
70. Special Customs Reference Application (D) 1018 of 2015Collector of Customs v .
Messrs Surjikare
71. Special Customs Reference Application (D) 1019 of 2015Collector of Customs v .
Messrs Surjikare
72. Special Customs Reference Application (D) 1020 of 2015Collector of Customs v .
Messrs Surjikare
73. Special Customs Reference Application (D) 1021 of 2015Collector of Customs v .
Messrs Shakir Traders
74. Special Customs Reference Application (D) 1022 of 2015Collector of Customs v .
Messrs M. Hussain Ahmad Traders
75. Special Customs Reference Application (D) 1023 of 2015Collector of Customs v .
Messrs M. Hussain Ahmad Traders
76. Special Customs Reference Application (D) 1024 of 2015Collector of Customs v .
Messrs Amjad Aziz
77. Special Customs Reference Application (D) 1025 of 2015Collector of Customs v .
Messrs Javed Steel Hose
78. Special Customs Reference Application (D) 1026 of 2015Collector of Customs v .
Messrs Sujicrafts
79. Special Customs Reference Application (D) 1027 of 2015Collector of Customs v .
Messrs Franko Shehzad
80. Special Customs Reference Application (D) 1028 of 2015Collector of Customs v .
Messrs Muslim Industry
81. Special Customs Reference Application (D) 1029 of 2015Collector of Customs v .
Messrs Muslim Industries
82. Special Customs Reference Application (D) 1030 of 2015Collector of Customs v .
Messrs Jawed Brothers
83. Special Customs Reference Application (D) 1031 of 2015Collector of Customs v .
Messrs Jawed Brothers
84. Special Customs Reference Application (D) 1032 of 2015Collector of Customs v .
Messrs Jawed Brothers
85. Special Customs Reference Application (D) 1033 of 2015Collector of Customs v .
Messrs Jawed Brothers
86. Special Customs Reference Application (D) 1034 of 2015Collector of Customs v .
Messrs Jawed Brothers
87. Special Customs Reference Application (D) 1035 of 2015Collector of Customs v .
Messrs Jawed Brothers
88. Special Customs Reference Application (D) 1036 of 2015Collector of Customs v .
Messrs Mushtaq Traders