MR. MUHAMMAD ASLAM, TECHNICAL MEMBER:--(1). This appeal has been filed By M/s. Magna Enterprises, Lahore, against Order-in-Original No. 50/1997 dated 10-9-1997 passed by the learned Collector of Customs, Lahore.
2. The issue involved in this appeal is whether or not the packing reels of plastic with logos of foreign brand imported by the appellants against five bills of entry are hit by the provisions of section 15(g) of the Customs Act, 1969 and the Negative List of the Import Policy Order 1995-1996 then in force?
3. The stand of the Department is that the subject printed reels of plastic are definitely not scrap because the same are to be used for the purpose of packing and wrapping of spurious products for sale in the local market, clandestinely carrying the names of foreign brands. That being so, the provisions of section 15(g) of the Customs Act, 1969 were rightly invoked in the case. It is also maintained by the Department that as the subject goods are factory rejects, sub-standard type and not fit for the recovery of material which is the basic stipulation in the case of waste and scrap, these even otherwise are banned for import being an item of the Negative List of the then Import Policy Order.
4. The prayer of the Department is that as the appellants had made a deliberate attempt to circumvent the relevant provisions of law, the orders of outright confiscation already passed in the matter may be confirmed and the appeal rejected so that the habitual offenders get a clear signal.
5. The appellants, however, agitate that gross injustice has been done to them and that the orders passed by the lower Forum reflect nothing but high handedness, victimisation and arbitrariness. To support their point of view, they have made the following submissions:--
(a) As none of the so-called foreign brands are registered in Pakistan, import of the stuff carrying logos thereof can't be termed as a violation of the provisions of section 15(g) of the Customs Act, 1969.
(b) The stand of the Department that the subject printed plastic sheets would be used for the packing of locally produced spurious products being based on assumptions/presumptions and conjections is not worth consideration in the eye of law.
(c) As subject goods are not capable of being put to their original use, in any cases these are nothing but waste material. Findings to the contrary are nullity in the eye of law as the same are based on misinterpretation/misrepresentation and misconstruction of law.
(d) In dozen of other cases, the same authorities have been releasing such goods in the past. Even after the interception of the subject goods at the Lahore Dry Port, a very large number of consignments of identical nature were released by Customs at Sialkot and Faisalabad.
(e) The CRFS issued by the PSI Company, then operating under SRO 1108(I)/94 dated 14-10- 1994, was brushed aside by the Customs without any rhyme and reason.
(f) As the goods are lying at the Lahore Dryport for the last more than 2 years, these have lost any utility except for the recovery of material.
6. We find that the arguments put forth by the appellants are more weighty and logical, well- founded and well-substantiated and based on reasoning and common sense. On the other hand, the stand of the Department is not only sketchy and self- contradictory but otherwise too in complete contrast with the norms and parameters of natural justice, objectivity and fair-play enunciated by the superior courts of the country from time to time in a number of cases.
7. As the orders passed by the learned Collector of Customs, Lahore suffer from palpable legal and factual infirmities, the same are set aside and the appeal accepted.
8. As the view-point of the appellants has been proved to be correct, they are entitled to the issuance of "Delay and Detention Certificate" so as to spare them of the un-warranted burden of heavy demurrage.