COLLECTOR OF CUSTOMS, PESHAWAR vs NEW SHINWARI LTD — 2023 PTD 1610 SUPREME-COURT

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COLLECTOR OF CUSTOMS, PESHAWAR VS NEW SHINWARI LTD. Ss.32 & 129---Pak-Afghan Transit Trade Agreement, 2010 ('the agreement')---Consignments found in excess of the quantities declared at the port of entry---Confiscation of good---Legality---Respondent-company had availed the transit facility pursuant to the Agreement executed between two sovereign States (i.e. Pakistan and Afghanistan)---It is not the case of the department that the consignments were transported in violation of the rules nor that the seals had been tampered with---Only allegation against the respondent-company was that upon examination of the consignments, the consignments of polyester fabric were found in excess of the quantities declared at the port of entry i.e. Karachi---Transit facility was not breached since it is not the case of the department that the rules were violated or an attempt was made to tamper with the seals or pilferage of the goods in transit---Levy and charge of custom duty and taxes are attracted in the case of transit goods if they are unauthorizedly unloaded from the licensed bonded carriers or even if such an attempt is made, or the transit rules are materially breached---In the absence of such acts, the goods in transit are not subject to payment of duties and taxes---In the present case the show cause notice had alleged violations of sections 32 & 129 of the Customs Act, 1969 ('Act of 1969'), despite no attempt having been made to pilfer the goods in transit and the absence of any actus rea that could have been construed as an intent to use the goods for a purpose other than transit to Afghanistan---Offence under section 32 of the Act of 1969 is relatable to the duty, taxes or charge which has not been levied or has been short levied or has been erroneously refunded---In the case in hand, there is no allegation against the respondent-company of having evaded or of making an attempt to evade the duties, taxes or any charge---Offence under section 32 of the Act of 1969 was, therefore, not attracted in the facts and circumstances of the case---It is also not the stance of the petitioner department that the Federal Government, by notification, had prohibited bringing into Pakistan the polyester fabric found in excess of the declared value---Petition for leave to appeal was disposed of and leave was refused.

COLLECTOR OF CUSTOMS, PESHAWAR vs NEW SHINWARI LTD — 2023 PTD 1610 SUPREME-COURT

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