LAHORE: An Afghan importer has got the entire sale proceeds recovered against the goods neither liable to confiscation nor any taxes and duties were payable on them, said sources.

They said the importer had imported a consignment of certain miscellaneous goods for transit to Afghanistan. The Customs authorities examined the consignment upon receipt of information and recovered contraband goods - bottles of liquor of different brands. Therefore, the container was seized and a case was registered against the importer.

However, the Customs Appellate Tribunal declared that the confiscation was unwarranted by law and directed the department to restore transit good unconditionally for dispatch in transit to Afghanistan under Customs escort.

But the department informed the importer that the goods have already been auctioned. The department can refund only a meagre amount of the sale proceeds owing to the deduction of taxes and duties.

The importer contested the point vehemently that transit of goods across Pakistan to a foreign territory when reaches Pakistan is not subject to the incidence of taxation.

Therefore, his consignment should be restored without deduction of taxes and duties for its onward transportation to Afghanistan. He further agitated that the Customs Tribunal has already held that the seized goods were not liable to confiscation, therefore, no question of charging any duty or tax arises in his case.

However, the department maintained that the Customs Act suggests that if anything other than confiscated goods are sold through public auction then the sake proceeds shall be applied firstly by paying the expenses of sale, freight, other charges, the Customs duty, other taxes and dues payable to the government in respect of the goods.

Sources said the matter went up to the highest appellate forums and the importer’s viewpoint stood correct that the goods in question were neither subject to the incidence of taxation nor it was liable to confiscation. Therefore, the department had no option but to pay back the entire sale proceeds to the importer.

Copyright Business Recorder, 2023