2008 PTD 1621
ZAFAR UL MAJEED, MEMBER (TECHNICAL).--- The facts giving rise to this appeal are that Messrs Serwer Traders, Lahore (the appellant herein) imported a consignment of Hydraulic Jacks having capacity from 4 Ton to 50 Ton falling under PCT. Heading No.84.25 and sought clearance thereof vide G.D. No. 1734 dated 4-8-2006 claiming benefit of S.R.O. No.575(I)/06 dated 5-6-2006. Since the benefit under this S.R.O. was not available to locally manufacture goods and Hydraulic Jacks of heading 84.25 appeared in the list of locally manufactured goods notified by the Central Board of Revenue vide C.G.O. No. 12 of 2002, dated 15-6-2002, the goods were provisionally assessed by securing differential amount of duty and taxes i.e., Rs.1,72,790 against indemnity bond post dated cheque subject to production of certificate from Engineering Development Board to the effect that the goods in question were not manufactured locally. On the appellant's failure to bring required certificate, the assessment was finalized by the Deputy Collector Customs vide a combined order C. No.V-CUS/MISC 109(IV)/2006/1427, dated 20-12-2006 passed in the case of Messrs Taj Trading International, Lahore whereby the benefit of S.R.O. 575(I)/06 was denied and demand of aforesaid amount of duty and taxes was raised against it. The appellant filed appeal against this order which was rejected by the Collector, Customs, Sales Tax and Federal Excise (Appeals) Lahore vide Order-in-Appeal No.122 of 2007, dated 4-9-2007.
2. Through the instant appeal, the appellant has challenged the order in appeal dated 4-9-2007. The appellant's case is that Hydraulic Jacks are not locally manufactured as initially certified by Messrs Peco Ltd., Lahore and later on by the Central Board of Revenue vide C.G.O. No. 11/2007, dated 28-8-2007 (issued in supersession of C.G.O. No.12 of 2002) by excluding the items in question from the list of locally manufactured goods, and, as such, the benefit of S.R.O.575(I)/06 has been wrongly denied to it. Learned counsel for the appellant produced copy of C.G.O. No.11/2007 during the course of arguments on 15-1-2008 which was seen by the D. R. Learned D.R. conceded that the goods in question having been excluded from C.G.O. No.11/2007, the same were entitled to the benefit of S.R.O. 575(I)/06 and that the department had denied the benefit on the strength of erstwhile C.G.O. No.12 of 2002 which was no longer valid.
3. I have gone through the facts on record and submissions made by the parties. The emergent position is that Hydraulic Jacks falling under P.C.T. heading No.84.25 having been excluded from the list of locally manufactured goods vide C.G.O. No.11 of 2007 dated 28-8-2007 are entitled to the benefit of S. R.O.575(I)/06 dated 5-6-2006 and that the denial of the benefit on this ground is not lawful. The appeal is accordingly accepted and the impugned order is set aside.
4. This judgment shall also apply to the appeal C.A. 476/LB/07 filed by Messrs Alba International, Branderath Road, Lahore against Order-in-Appeal No.121/2007, dated 4-9-2007 which involves identical questions of law and facts.
S.A.K./65/Tax (Trib.) Appeal accepted.