KARACHI: The Sindh High Court (SHC) has directed the tax authorities and deputy attorney general to file their respective comments on a constitutional petition filed by M/s Sialkot International Airport Limited. The petitioner sought exemption of custom duty and taxes on import of two scanning machines for scanning of baggage at the departure lounge.
A two-member bench headed by Justice Munib Akhtar heard the petition. The court adjourned the hearing for January 31, 2017.
Earlier, counsel for the petitioner stated that petitioner imported two consignments of machinery/ equipment consisting of two scanning machines vide goods declaration dated 4/12/2015 for the scanning of hold baggage and hand carried items of the passengers. The same are to be installed at the arrival lounge, which is still under construction. He added that the scanning machines are exempted from customs duty and taxes.
According to the petitioner, it had requested the Aviation Division Islamabad for issuance of an NOC to avail the facility of exemption duty and taxes and the Aviation Division issued the NOC under their covering letter dated 29/12/2015 and the petitioner submitted the same to the collector of customs. However, the customs authorities refused to accept the NOC and directed the petitioner to pay the customs duty and taxes.
The counsel further argued that the scanning machines were released after submission of pay order of Rs 4.17 million.
Citing Collector of Customs Model Customs Collectorate West, Chairman Federal Board of Revenue (FRB) as respondents, the petitioner pleaded the court to declare the act of the petitioner as illegal, mala fide and arbitrary. It also pleaded the court to restrain them from encashing the pay order of the differential amount of taxes till the decision of this petition.
