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Customs Appellate Tribunal sets aside ONO in potatoes import case

Customs Appellate Tribunal sets aside ONO in potatoes import case

LAHORE: Customs Appellate Tribunal has quashed show cause notice and accepted the appeals filed by the three importers of potatoes. The appeals was filed by M/s Hamza Traders, M/s M.A Sons and Qaiser Enterprises against collector of customs (Adjudication) Lahore and others.

On 7.9.2017, Member Judicial bench-II Omar Arshad Hakeem, heard the stance of all three appellants and decided the case with order to set aside the Order-in-Original (ONO).

As per details of case, the core controversy was involved in the import of potatoes that importers illegally claimed the tax exemption. The audit was conducted by the Director General Audit and found that no exemption of sales tax allowed on the sales of potatoes and short paid amount should be recovered from the importers.

After show cause notice, adjudication proceeding were culminated and order in original was passed with remarks that short paid amount of Rs 13,63, 003 with penalty of Rs100,000 recovered from the importer.

Being aggrieved, order was challenged before the Customs Appellate Tribunal on the grounds that order in original passed against the facts of case, the importer has paid their tax liabilities under the relevant laws and order in original passed beyond the law and same is liable to set aside.

On the other side, the representative of department produced the all relevant documents and prays for the rejection of appeal.

After hearing the arguments from appellant and respondent, Customs Appellate Tribunal has decided the case in the favor of appellants/ importers.