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Home Breaking News

SHC seeks remarks on petition filed by M/s Pakistan Leakless Industries & others

byM.B. Rana
03/12/2020
in Breaking News, Karachi, Latest News
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KARACHI: A division bench of the Sindh High Court (SHC) directed customs officials to ensure filing their para wise comments on a constitutional petition filed by M/s Pakistan Leakless Industries Private Limited against imposition of additional duty on raw material/ components for manufacturing of engine gaskets under the garb of valuation ruling SRO 670(I) 2019.

On 2 December 2020, during the hearing, counsel for the petitioner stated that petitioner imported the raw material/ components for manufacturing of engine gaskets, however, the said goods of the petitioner range from parts for motorcycles, passenger cars, which fall under different heading in chapter 87 of Pakistan Customs Tariff, the auto parts manufactured by the petitioner then supplied to the manufacturers/ assemblers of two wheelers and four wheelers.

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He further argued that petitioner is aggrieved by the arbitrary and illegal application of SRO 670(I)2019, which purports to levy, demand and collect additional customs duty on import of goods specified in first schedule to the customs act, 1969 at the rate specified therein. This includes import of raw materials, components, and sub-assembles for manufacturing gaskets automotive parts.

He further stated that it is respectfully submitted that no additional customs duty including the one imposed under SRO 670(I)2019  could be imposed or made applicable on the imports made by the petitioner for manufacture of auto parts during the period of 2016 to 2021, in terms of commitment made by the federal government under the auto development policy 2016-2021 and notification issued under the auto policy.

Citing chairman FBR, secretary of finance, collector of Customs Appraisement West, East and Port Muhammad Bin Qasim as respondents, petitioner pleaded the court to declare that the petitioner having acquired a vested right to exemption from payment of duty under the customs act, 1969, in excess of the rates as stipulated in the notifications giving effect to the tariff plan envisaged by auto policy 2016 for the period of 2016 to 2021, is not liable to pay any further duty under the customs act, 1969, including additional customs duty on their imports under SRO 670(I) 2019 and SRO 630(I)/2018.

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