SOHAIL JUTE MILLS LTD. vs FEDERATION OF PAKISTAN AND OTHERS
This matter concerns a petition for leave to appeal before the Supreme Court of Pakistan regarding the imposition of a 5% additional customs duty, characterized as a surcharge, on the value of imported plant and machinery. The core legal question presented is whether this surcharge can be validly levied under Section 2 of the Finance Ordinance, 1982, notwithstanding a prior Notification dated 26th of June, 1980, issued under Section 19 of the Customs Act, 1969. The 1980 Notification had specifically granted an exemption from such additional customs duties for plant and machinery intended for installation in designated exempt areas, such as Noshehra. The Court granted leave to appeal to examine the interplay between the subsequent Finance Ordinance and the earlier exemption notification. Pending the final adjudication of the appeal, the Court confirmed the interim order previously passed, directing that interest payable on the bank guarantee provided by the petitioner must remain deposited in the bank until the final decision of the appeal. The Court further ordered an early hearing of the appeal on the existing record, granting parties liberty to file additional documents.
- Can a 5% additional customs duty be levied on plant and machinery under the Finance Ordinance 1982 if such machinery was previously exempted by a notification under the Customs Act 1969?
- Does a notification issued under Section 19 of the Customs Act 1969 exempting machinery from customs duty prevail over a subsequent surcharge imposed by the Finance Ordinance 1982?
- Section 2, Finance Ordinance 1982
- Section 19, Customs Act 1969
ORDER
MUHAMMAD HALEEM, ACTG. C. J.-Leave to appeal is granted to consider the question as to whether 5% additional customs duty as surcharge can be levied on the value of the plant and machinery pursuant to section 2 of the Finance Ordinance, 1982, in the context of the Notification dated 26th of June, 1980, issued under section 19 of the Customs Act, 1969, which exempted the import of plant and machinery proposed to be installed in the exempt area such as the area of Noshehra from such surcharge/additional customs duty.
2. Security for costs Rs, 5,000. The interim order earlier passed is confirmed, but the interest payable on such bank guarantee shall continue to remain deposited in the bank till the final decision of the appeal. The appeal arising from this petition shall be heard at an early date on the present record with liberty to the parties to file additional documents, if any.