KARACHI: The Sindh High Court (SHC) issued notices to tax authorities and deputy attorney general of Pakistan on a constitutional petition filed by M/s Lucky Knits Private Limited challenging Sindh Development and Maintenance of Infrastructure Rules fixing the duty and taxes on imported goods entering the province from outside the country.
While hearing the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi passed interim order and restrained the tax authorities from collecting such duty and taxes. The court also directed them to file their respective comments on next date of hearing. The Court has adjourned the hearing for January 24, 2017.
The counsel for the petitioner stated that it is a private limited company and engaged in business of manufacturing and cum importer and exporter of garments. The petitioner is also importing all sorts of garments, textiles, yarns, fabrics and other textile products worth millions of rupees every year through Karachi.
He informed the court that Sindh Government has introduced Sindh Development and Maintenance of Infrastructure Rules, 1994 in which the fee purported to be levied under section-9 was to be assessed and collected at the 0.1% on duty paid value on imported goods entering the province from outside the country, 0.2% on C&F Value on imported goods on which the customs duty is to be paid outside the province and 0.5% on the value of shipping bill on goods leaving the province for outside the country.
He added that impugned Sindh Development and Maintenance of Infrastructure Rules to be ultra vires, void, and illegal.
Citing Sectary Excise & Taxation Department, the Director General Excise & Taxation Department and Distract Excise & Taxation officer as respondents, petitioner pleaded the court may declare that the Sindh Development and Maintenance of Infrastructure Rules, 1994 are unjust.
