ORDER SHEET

IN THE HIGH COURT OF SINDH, KARACHI

Suit No.1429 of 2015

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Date                         Order with signature of Judge

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1.For order on CMA No.11074 /2015

2.For order on CMA No.11075/2015

03.08.2015

M/s Haider Waheed and Ahmed Masood advocates for plaintiff

Mr. M. Ilyas Ahsan Appraising Officers Custom, Karachi

Mr. Osama Aftab advocate holding brief for Mr. Kashif Nazir advocate 

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1.       Urgency granted.

2.       Through this suit, the plaintiff has challenged the Valuation Ruling No.712/2015, passed by defendant No.3 in relation to the determination of custom value of alloy and non-alloy steel bars/deformed alloy steel bars under Section 25-A of the Custom Act, 1969. It is inter alia contended that the plaintiff is engaged in manufacturing and sale of mild steel plain bars, high grade twisted bars and deformed bars. The present suit relates to custom appraisement valuation of steel bars imported from China under the free trade agreement between China and Pakistan. Learned counsel argued that for the purpose of valuation of Metal and alloys, normally the reliance is placed by the importer as well as custom authority on London Metal Bulletin which is a global forum through which metal stock is traded. In respect of re-bars imported from China according to LMB, the current price as on 06.07.2015 is valued at U.S $ 370- 325, whereas, in the Valuation Ruling, the defendant No.3 arbitrarily determined the custom value at U.S $ 560 metric ton while the plaintiff has been invoiced by the supplier at the rate between U.S $ 315-385 metric ton which price range is reflected in the L.M.B for the relevant period. During course of arguments, learned counsel for the plaintiff invited my attention to page-117 which is a review/revision application moved to the Director Valuation, Custom House, Karachi on 26.02.2015. However, he submits that due to lengthy process, it will take enough time to decide and since the consignment is stuck up, therefore, the plaintiff has approached this court. He further argued that defendants may be directed to release the consignment on deposit of differential amount of duty and taxes with the Nazir.

          Mr. Osama Aftab advocate holding brief for Mr. Kashif Nazir Advocate undertakes to file vakalatnama. Mr. M. Ilyas Ahsan Appraising Officer, Custom House, Karachi is also present who undertakes that review/revision application will be decided by the competent authority within fifteen (15) days. In the meanwhile or as a temporary arrangement in the intervening period, the custom authority will release the consignment provided that the plaintiff deposit the differential amount of duties and other taxes with the Nazir of this court.

          On this statement, leaned counsel for the plaintiff submits that if the review/revision application is decided expeditiously and in the transitional period the goods are released on the payment of differential amount then he agrees for the disposal of suit alongwith pending application.

          By consent the suit is disposed of in the following terms:-

1. The main controversy in this suit is Valuation Ruling according to which custom authority has determined the value of goods as U.S # 560 metric ton while the plaintiff claims that the value in respect of re-bars imported from china is U.S # 320-325 according to current L.M.B. Since the review/revision application is already pending, let it be decided by the competent authority within fifteen (15) days time.

2. Till such time the review application is decided, the consignment of the plaintiff will be released subject to deposit of differential amount of duties and other taxes through bank guarantee/pay order with the Nazir of this Court and this arrangement will continue till the decision of review/revision application.

3. The goods shall be released by the custom authority subject to confirmation and verification from the office of the Nazir of this court regarding deposit of differential amount of duties and taxes through bank guarantee/pay order to the satisfaction of custom authority/defendants.

4. Immediately upon decision of the review/revision application, the order shall be submitted to the Nazir of this court for further proceedings in relation to the differential amount deposited with him which will be released according to the decision of review/revision application.

          In above terms, suit is disposed of accordingly alongwith listed application.

                                                                   JUDGE    

Aadil Arab