1989 PLP 3280 (MLD)

Dates of hearing: 27th and 28th February, 1989. SAEEDUZZAMAN SIDDIQUI, J.--The petitioner has challenged the demand of custom duty by respondent Nos.2 and 3 at the rate of Rs.15 per kilogram on polyster fibre cleared on exbond entries finalised on 5-7-1980. The brief facts giving rise to the petition are as follows: The petitioners who are owner of a textile mills, imported polyster and viscose rayon staple fibre commonly known as artificial fibre in seven different consignments which arrived at Karachi Port between 5-2-1980 - and 13-5-1980. The consignments on arrival were, however, not cleared immediately for home consumption as the petitioner requested for warehousing of these consignments by filing inbond bills of entry. Accordingly, at the request of the petitioner, the consignments were inbonded to obtain the period from 25-2-1980 to 10-5-i

980. It is an admitted position that on the dates the above consignments were inbonded the rate of custom payable on the consignment was Rs.11 per K.G. which was accordingly assessed on the inbond entries. The petitioner applied for exbonding of the above consignments after 5-7-1980. It is also an admitted position that by Finance Ordinance, 1980 which came into effect from 1-7-1980 the schedule of the Customs Act 1969 was amended and the custom duty in respect of artificial fibre was raised from Rs.11 per K. Gram to Rs.15 per Kg. The contention of the learned counsel for the petitioner, however, is that the goods having been imported and inbonded by them before the above amendment of 1980 they were liable to pay custom duty at the rate which was prevalent on the date of fling of inbond entries. The learned counsel for the respondents, on the other hand contended that in view of Section 30 (b) of the Customs Act the rate of custom duty payable on the consignment was that which was prevalent on the date the petitioner applied for exbonding of the consignments. The answer to the above controrversy depends solely on the interpretation of Section 30 of the Customs Act 1969 which reads as under: "

30. The value of and the rate of duty applicable to, any imported goods shall be the value and the rate of duty in force-- (a) in the case of goods cleared for home consumption under section 79, on the date on which a bill of entry is presented under that section, and (b) in the case of goods cleared from a warehouse under section 104, on the date on which a bill of entry for clearance of such goods is presented under that section: Provided that where a bill of entry has been filed in advance of the arrival of the conveyance by which the goods have been imported the relevant date for the purposes of this section shall be the date on which the manifest of the conveyance is delivered: Provided further that, in respect of goods for the clearance of which a bill of entry for clearance has been presented under section 104, whether before or after the commencement of the Finance Ordinance 1979, and the duty is not paid within seven days of the bill of entry being presented, the value and rate of duty applicable shall be-the value and rate of duty on the date on which the duty is actually paid." A reading of the clause (b) of Section 10 reproduced above, will show that in the case of goods cleared from a warehouse under section 104, the value and rate of duty shall be that which is prevalent on the date on which, bill of entry for clearance of such goods is presented under that section. The admitted position in the case is that exbond entries for release of the consignments were presented by the petitioner much after coming into force of Finance Ordinance, 1980 which amended the rate of custom duty payable on artificial fibre. In these circumstances the Custom authorities rightly demanded custom duty on the goods at Rs.15 per kg. which was the prevailing rate of duty on the date, the petitioner applied for ex-bonding of the consignments. We accordingly dismiss the petition but there will be no order as to costs. S-405/K Petition dismissed.