Importers of Cocoa Powder Denied Dual Exemption Claims in Customs Duty Case

Importers of cocoa powder have been denied the ability to claim exemptions under two separate notifications simultaneously. The issue arose when importers claimed customs duty exemption under SRO 1261, a claim that was neither disputed nor denied by the department.

Additionally, the importers sought exemption from additional customs duty under serial No. 3(vi) of SRO 967, read with serial No. 2, Chapter VII, Part-II, Table-B of the Fifth Schedule to the Customs Act, 1969. However, the department maintained that exemptions under two separate SROs could not be claimed simultaneously. It argued that additional customs duty imposed under SRO 967(I)/2022 applies to all goods, rendering the importers ineligible for the exemption.

Aggrieved by the levy of additional customs duty, the importers challenged the departmental decision, citing an FBR letter which stated that an importer could benefit from multiple notifications simultaneously. They argued this entitled them to the exemption.

The department countered, asserting that the importers were not eligible for the exemption under SRO 967 because this benefit applies solely to goods subject to customs duty under the Fifth Schedule of the Act. The importers, however, were charged under the First Schedule. According to the department, this was not a case of dual exemption claims but rather a matter of ineligibility under SRO 967.

The appellate forum upheld the department stance, clarifying that the importers claim for exemption based on the FBRs letter was unfounded. It ruled that the importers were not entitled to any benefit under serial No. 3 of SRO 967, reinforcing the department decision