Value of imported tyres, tubes: SC sets aside SHC verdict

The Supreme Court of Pakistan has overturned the Sindh High Court's decision on the valuation of imported tyres and tubes destined for cars and trucks. A three-judge panel, led by Chief Justice Yahya Afridi and including Justices Irfan Saadat Khan and Aqeel Ahmed Abbasi, nullified the High Court's judgment from February 29, 2024, and reinstated the Customs Appellate Tribunal's ruling from July 26, 2022.

The original appeal was lodged by tyre and tube importers who were dissatisfied with the findings of the Customs Valuation Director in the revised orders on Valuation Rulings No. 1543/2021, No. 1544/2021 and No. 1545/2021, all issued on August 3, 2021. The Tribunal found these Valuation Rulings invalid as they disregarded the provisions of the Customs Act of 1969, thereby making the subsequent Orders-in-Revision illegal and without legal standing.

The impugned Orders were subsequently set aside, directing that the goods be assessed at the values previously declared for duty and tax purposes, as per the Goodwill Traders, Karachi case (2014 PTD 176) cited by the Court. The respondent department, aggrieved by this, appealed to the Sindh High Court, which reversed the Tribunal's decision in favor of the Customs department.

The High Court's decision, authored by Justice Aqeel, held that the Tribunal's valuation was based on undisputed facts presented by the importers. The Court emphasized that the reference jurisdiction of the High Court cannot overturn such factual findings, especially when no specific question on this matter was raised by the Customs department.

The apex Court affirmed that the Customs Appellate Tribunal is the ultimate authority for fact determination in tax and customs cases. The Court's ruling noted that the Tribunal did not face any challenge regarding the alleged perversion or lack of evidence supporting the Tribunal's findings, given that the respondent department's six legal questions centered on the Customs Valuation Director's and Director General's powers under Sections 25A and 25D of the Customs Act, 1969.

The judgment highlighted that the Tribunal determined the customs value of the goods using the sequential order under Section 25 of the Customs Act, contrary to the fallback method under Section 25(9) of the same Act.