Liner fabric

2010 PTD 1335 Customs, Federal Excise and Sales Tax Appellate Tribunal Judicial Precedent

S.25Customs Rules, 2001, R.107(a)Value of imported and exported goodsNylon fabricLiner fabricEnhancement of value

Value of subject 100% Nylon Fabric and liner fabric was declared through goods declaration @ US$ 1.150 per meter FOB and US$ 0.880 per meter FOB respectively which were enhanced @ 4.0804 per kg and US$ 5.6028 per kg respectively

Goods declaration was completed and the same was intercepted by officers of Directorate of Intelligence and Investigation and after issuance of show-cause notice the already enhanced values were further enhanced on the basis of evidential import of trade rivals under which similar goods were imported @ US$ 7.7 per meter; and even declared PCT Heading 5407.4200 attracting customs duty @ 15% ad valorem was changed to Heading 5903.9000 attracting customs duty @ 25% ad valorem

Validity

First enhancement of the declared unit value was done on the basis of evidence which had neither been disclosed either in the show cause notice nor in the order-in-original

Goods were cleared at enhanced price to avoid demurrage charges as well as to honour contractual obligations

Second enhancement after detention of goods was done on the basis of evidential import of trade rivals who had imported a totally different main camouflage fabrics cordura in the year 2007

Evidential import was imported 8 months subsequent to importation of appellant which was not applicable in terms of 90 days valuation data in terms of S.25 of the Customs Act, 1969 read with R.107 (a) of the Customs Rules, 2001

Data of import of other evidential import was 15 months prior to the subject import

Both the invoices relied upon for first and second enhancement of declared invoice price of the importer were not relevant and admissible in terms of provisions of S.25 of the Customs Act, 1969 read with R.107(a) of the customs Rules, 2001

Enhancement of value made by the Customs Department was unlawful, illegal and without any legal basis.