Appellate tribunal’s judgment: SHC dismisses reference plea filed by DGI&I

KARACHI: The Sindh High Court has dismissed a reference application filed by the Directorate General, Intelligence & Investigation (Customs), Karachi against a judgment by the Customs Appellate Tribunal over Pakistan’s biggest and first departmental store.

The issue was related to the delay in passing an Order-in-Original (ONO) by the Customs department beyond the 30-day time limit prescribed under the first proviso to Section 179(3) of the Customs Act, 1969.

The High Court agreed with the Tribunal’s finding that the ONO was passed after 92 days, which was in violation of the 30-day time limit. The court held that the extension granted by the Collector of Customs after the expiry of the 30-day period was invalid.

The High Court relied on previous Supreme Court rulings that have held that the time limits prescribed in fiscal statutes are mandatory, and non-compliance would invalidate the Act. Moreover, the High Court dismissed the reference application and directed the matter to be sent back to the Customs Appellate Tribunal as per the Customs Act.

The Sindh High Court also observed that government departments need to be more diligent in adhering to mandatory timelines provided in fiscal laws, as delays often benefit the taxpayers.

Copyright Business Recorder, 2024