KARACHI: The Sindh High Court (SHC) has dismissed a petition of a pharmaceutical company against the customs authorities for denying it the benefit under SRO 575(1)2006, reducing customs duty and other taxes on import of machinery.
A division bench headed by Justice Sajjad Ali Shah dismissed the petition filed by M/s Novartis Pharma (Private) Limited, declaring it against the merit.
The petitioner firm’s advocate submitted that the company had imported 17 Air Handling Units along with plug fans in June 2011 and claimed benefit under SRO 575(1)2006, contending that the imported machinery was not manufactured locally. However, he said, the collector of customs, Port Muhammad Bin Qasim declined to entertain its plea for the benefit on the ground that the Air Handling Units imported by the petitioner were being manufactured locally.
He argued that when such units were imported by M/s Nestle and Nexter Pharma they were given such benefits but it was being meted out discrimination. In order to avoid additional cost and demurrages the petitioner company furnished two bank guarantees in sum of Rs 5,551,935 and Rs 3,997,393 and got the consignment released, he told the judges.
Later, he said, the company approached the Engineering Development Board to obtain clarification to the effect that the units imported by it were not manufactured locally and subsequently it issued clarification, saying the machinery was now being manufactured locally.
The company petitioned against the findings of the Engineering Development Board and requested the court to declare the same null and void. The court was further requested to issue directives for the customs authorities to give the petitioner benefit under above-mentioned SRO.
In response to the petition, the counsel for collector of customs submitted that two companies availed the benefits in 2009 when these units were not manufactured locally. However, they are manufactured now and therefore, the petitioner was entitled to such benefit.
