The Federal Board of Revenue has to clearly define the role and functions of the Collectors of Customs (Appeals) while setting up new Collectorates of Customs (Adjudication) from July 1, 2012 to avoid overlapping of functions carried out by Collectors Appeals and Collectors Adjudication.
Tax experts told Business Recorder here on Friday that the FBR will issue a notification to set up six Collectorates of Customs (Adjudication) from July 1, 2012. The purpose of establishing the Collectorates of Customs (Adjudication) is to separate functions of executive from quasi-judicial fora. One of the options is that the posts of the Collectors of Customs Appeals would remain intact and separate Collectors of Customs (Adjudication) would be established across the country.
The second option is that the posts of the Collectors of Customs Appeals would be replaced with the Collectors of Customs (Adjudication). The Collectors of Customs (Adjudication) may operate under the supervision of the Collectors of Customs Appeals. There are strong changes that a separate setup of the Collectorates of Customs (Adjudication) would be implemented from next fiscal and Collectors of Customs (Appeals) would continue under the relevant provisions of the Customs Act, 1969.
The establishment of the separate Collectorates of Customs (Adjudication) would ensure that the taxpayers' cases should be heard by an independent body without any influence and interference of the tax department.
The question arises what would be the status of the appeals filed by the taxpayers pending with the Collectors of Customs Appeals after establishment of the Collectorates of Customs (Adjudication) from July 1, 2012. It is expected that the FBR will issue instructions to the Collectors of Customs Appeals to specify the role and functions of the new setup of the Collectorates of Customs (Adjudication), they said.
Experts pointed out that at present Collector of Customs (Appeals) has been empowered to exercise powers available under section 193 of the Customs Act, 1969. Under the existing procedure of appeals for the taxpayers, any person other than an officer of customs aggrieved by any decision or order passed under section 179 of the Customs Act by an officer of customs may prefer appeal to the Collector (Appeals) within 30 days of the date of communication to him of such decision or order. Provided that an appeal preferred after the expiry of thirty days may be admitted by the Collector (Appeals) if he is satisfied that the appellant had sufficient cause for not preferring the appeal within that period. The Collector (Appeals) shall give opportunity to the appellant to be heard if he so desires. The Collector (Appeals) may, after making further inquiry as may be necessary, pass such order as he thinks fit, confirming, modifying or annulling the decision or order appealed against, or may refer the case back to the adjudicating authority with such direction as he may think fit for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary.
The order of the Collector (Appeals) disposing of the appeal shall be in writing state that points for determination, the decision thereon and the reasons for the decision. On the disposal of the appeal, the Collector (Appeals) shall communicate the order passed by him to the appellant, the adjudicating authority and the Collector of Customs, they added.