KARACHI: M/s Ghandhara DF Private Limited has approached the Sindh High Court (SHC) and filed a constitutional petition against impugned SRO 572(I)/2020 as far as it seeks to impose any additional customs duty on the petitioner within 5 years period is illegal.
On 29 October 2020, counsel for the petitioner stated that petitioner has two distinct lines of businesses the first one is complete build up (CBU) operation and second one is complete knock down (CKD) operations, in the former the petitioner imports vehicles which are assembled abroad and sell them locally, in the latter the petitioner imports components and then manufactures and assembles the vehicles locally.
He submitted that through this petition, the petitioner seeks to challenge (i) the imposition of additional customs duty through SRO 572(1)/2020 dated June 30, 2020 on the petitioner’s import of components for the manufacture/ assembly of vehicles even through the petitioner has been exempted from customs duty in excess of 45% on localized for vehicles falling under PCT Heading 87.03 and 87.04 and in excess of 30% and 20% on non-localized components for vehicles under PCT Heading 87.03 and 87.04 respectively for a period of five years and (ii) the vires of section 18(5) of the customs act, 1969 on the ground that it amounts to an excessive delegation of power.
Counsel further argued that result of auto policy 2016 and the amendments made in SRO 656(I)/2006, SRO 693(I)/2006 and SRO 484(I)/ 2016 was to exempt imports from customs duty and additional custom duty in excess of 45% on localized (this is excluding the illegal 1% additional duty levied SRO 1178) for vehicles falling under PCT Heading 87.03 and 87.04 and in excess of 30% and 20% on non localized components for vehicles under PCT Heading 87.03 and 87.04 respectively for a period of five years.
Counsel stated that as such, the petitioner stood exempted from any subsequent increase in customs duty and /or additional customs duty during the respective period.
Citing chairman FBR, secretary Ministry of Finance, collector of customs Appraisement West, East and Port Qasim as respondents, petitioner pleaded the court to declare that the impugned SRO 572(I)/2020 is so far as it seeks to impose any additional customs duty on the petitioner within the 5 years period is illegal.
