Goods released without redemption fee payment: Customs department challenges adjudicating authority’s decision

LAHORE: The Customs department challenged its own adjudicating authority for releasing consignment without payment of redemption fee, said sources.

According to details, a local trading company had imported a consignment comprising of different items and filed Home Consumption Goods Declaration for clearance against a peculiar declared value.

The examination staff of the department reported an undeclared item - cigarette lighter filled with gas (refillable). The said undeclared item was attracting higher valuation ruling and higher slab of duties and taxes. Accordingly, proceedings were initiated by the Collectorate followed by framing of contravention case against the importer.

However, the departmental adjudicating authority observed that the importer has shown his willingness to pay the leviable duties and taxes on the undeclared goods as per applicable rates and release of goods for the reason that no revenue and loss is caused to national exchequer. While issuing a warning to the importer that he should be careful in future, the adjudicating authority imposed a personal penalty and disposed of his appeal.

Being aggrieved with the orders passed by the adjudicating authority, the department filed an appeal against the aforesaid order-in-original before the relevant forum and reiterated that the adjudicating authority failed to appreciate the clear intention of legislature to impose fine @35% upon the importer.

It further maintained that the Additional Collector Adjudication passed the order without examining the case record which causes serious prejudice to the department. Not only this but he has also failed to appreciate that the instant case is an established case of misdeclaration and as such the goods cannot be released without passing an order for imposition of fine and penalty.

Therefore, the order passed by him is liable to be set aside, as it is passed in violation of the provisions of Customs Act, 1969. The relevant forum set aside the order-in-original and directed to impose redemption fee @35% upon the importer in addition to personal penalty already imposed against him.

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