KARACHI: The Sindh High Court (SHC) disposed of petition with directions that both the sides to resolve their dispute as per the mechanism provided under section 24 through arbitration by appointing an arbitrator and till any findings are given by the arbitrator, whose decision as evident under sub-section (2) of section 24 is binding on the parties, operation of the impugned circular to remain suspended on a constitutional petition filed by Mahnoor Food Industries Private Limited.
On 7 March 2022, a two-member bench released verdict and observed that learned counsel has challenged circular dated Nov 13, 2020 issued by respondent alleging that the same has been issued without jurisdiction consequently having no legal effect and the ratio of 80; 20, which the said circular proposes to be calculated on the “customs assessed value” instead of “production value”
Court observed that as factual controversy is involved, which con not be adjudged through this petition, where this court has observed that the impugned circular does not even mention under which rule or section of law it has been issued, and having observed that a mechanism of dispute resolution is provided for under section 24 of the EPZA Ordinance 1980 by way of arbitration.
We disposed of petition with directions that both the sides to resolve their dispute as per the mechanism provided under section 24 through arbitration by appointing an arbitrator and till any findings are given by the arbitrator, whose decision as evident under sub-section (2) of section 24 is binding on the parties, operation of the impugned circular to remain suspended.
Zain A Jatoi, Muhammad Mustafa and Syed Haris Hassan advocates appeared behalf of the petitioner, Kafeel Ahmed Abbasi Deputy Attorney General appeared behalf of the federation and Chairman FBR, Khalid Hayat Khan and Pervaiz Ahmed Memon advocates appeared on behalf of customs officials.
