Section 195C: Alternative dispute resolution (ADR)

36,75,81[195C. Alternative dispute resolution (ADR).- (1) Notwithstanding anything contained in this Act, or the rules made there under, any aggrieved person, in connection with any dispute pertaining to liability of customs-duty, admissibility of refund or rebate, waiver or fixation of penalty or fine, confiscation of goods, relaxation of any time period or procedural and technical condition which is under litigation in any court of law or an appellate authority, except in the cases where criminal proceedings have been initiated or where interpretation of question of law having larger revenue impact in the opinion of the Board is involved, may apply to the Board for the appointment of a committee for the resolution of dispute in appeal. (2) The application for alternate dispute resolution under sub-section (1) shall be accompanied by an initial proposition for resolution of the dispute, including an offer of payment of duties and taxes. (3) The Board may, subject to the provisions of sub-section (1) and (2), after examination of the application of an aggrieved person, appoint a committee, within fifteen days of receipt of such application, consisting of- (a) a retired judge not below the rank of a judge of a High Court, who shall also be the Chairperson of the Committee, to be nominated by the Board from a panel notified by the Law and Justice Division for such purpose; (b) an officer of customs not below the rank of Chief Collector having jurisdiction over the case; (c) a person to be nominated by the applicant from a panel notified by the Board, comprising- (i) chartered accountants, cost and management accountants and advocates, having minimum ten years experience in the field of taxation; Provided that the taxpayer shall not nominate a chartered accountant or cost and management accountant or an advocate if the said chartered accountant, cost and management accountant or the advocate is or has been an auditor or an authorized representative of the taxpayer; (ii) reputable businessmen as nominated by Chambers of Commerce and Industry; and (iii) officer of Customs Service of Pakistan who stood retired in BS 21 or above: (4) The Board shall communicate the order of appointment of committee to the aggrieved person, court of law or the appellate authority where the dispute is pending and the concerned Collector. (5) The committee constituted under sub-section (3) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of customs or any other person to conduct an audit and shall decide the dispute by majority, within forty-five days of its constitution extendable by another fifteen days for the reasons to be recorded in writing. (6) The recovery of duties and taxes payable by the applicant in connection with any dispute for which a committee has been appointed under sub- section (3) shall be deemed to have been stayed from the date of appointment of the committee up to the date of decision of committee or its dissolution, as the case may be. (7) If the aggrieved person is satisfied with the decision of the committee, he shall withdraw the appeal pending before the court of law or any appellate authority and communicate the order of withdrawal to the Collector within thirty days of the service of the decision. (8) The decision of the committee under sub-section (5) shall be binding on the Collector subject to the provision of sub-section (7). (9) Subject to sub-section (7), the Collector shall also withdraw the appeal, if any, pending before any court of law or an appellate authority in respect of dispute as mentioned in sub-section (1) within thirty days of the communication of the order of withdrawal by the aggrieved person to the Collector. (10) If the committee fails to make recommendations within a stipulated period of sixty days under sub-section (5), the Board shall dissolve the committee by an order in writing and the matter shall be decided by the appellate authority where the dispute is pending. (11) The Board shall communicate the order of dissolution to the court of Law or the appellate authority and the Collector and the aggrieved person. (12) The aggrieved person, on receipt of the order of dissolution, shall communicate the order to the appellate authority, which shall decide the appeal within the stipulated period as provided under the relevant provision, of the communication of the said order. (13) The aggrieved person shall make payment of customs duty and other taxes as determined by the committee under sub-section (5) and all decisions, orders and judgments made or passed shall stand modified to that extent. (14) The Board may prescribe the amount to be paid as remuneration for the services of the members of the committee, other than the member appointed under clause (b) of sub-section (3). (15) The Board may, by notification in the official Gazette make rules for carrying out the purposes of this section, including the procedures and manner of conducting of ADR committee meetings.]

Effective date: 1969-03-03

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