Suhail Jute Mills Ltd. Other. vs Federation Of Pakistan And Other
This matter comes before the Supreme Court of Pakistan on a petition for leave to appeal concerning the legality of levying a 5% additional customs duty as a surcharge on the value of imported plant and machinery. The core legal question revolves around whether the said surcharge could be imposed under section 2 of the Finance Ordinance, 1982, notwithstanding a specific Notification dated 26th of June, 1982 issued under section 19 of the Customs Act, 1969, which exempted the import of plant and machinery intended for installation in exempt areas such as Noshehra from such surcharges and additional customs duties. The Court granted leave to appeal to examine this question, confirmed the earlier interim order subject to conditions regarding the deposit of interest on the bank guarantee, and directed that the appeal be heard at an early date. The key principle entails interpreting the scope of statutory exemption notifications issued under customs laws vis-a-vis subsequent or general taxing provisions under finance ordinances.
- Whether 5% additional customs duty as surcharge can be levied on the value of plant and machinery pursuant to section 2 of the Finance Ordinance, 1982?
- Does a notification issued under section 19 of the Customs Act, 1969 exempting the import of plant and machinery in exempt areas override the levy of additional customs duty?
- Section 2, Finance Ordinance 1982
- Section 19, Customs Act 1969
ORDER
Muhammad Haleem, Actg, C. J. 1.-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, 1982, 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 sur- charge/additional customs duty.
2. Security for costs R s. 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.