Federation Of Pakistan And Other vs Amjad Hussain Dilawari And 2 Other
This matter involves three appeals filed by the Federation of Pakistan against a consolidated judgment of the Lahore High Court, which had originally accepted writ petitions filed by the respondents regarding customs duty exemptions. The core legal question concerned the scope and applicability of customs duty exemptions granted under the Customs Act, 1969, specifically regarding the temporal limits of such exemptions once withdrawn. The Supreme Court, following its earlier precedent in Federation of Pakistan v. M. Afzal & Sons and others (C.A. 210 to 215 of 1977), held that where a customs duty exemption is withdrawn, the benefit is restricted to goods imported between the date of the exemption's grant and its withdrawal, provided that the bills of entry were filed with the Customs authorities before the withdrawal date. The Court rejected broader interpretations that might extend this benefit based solely on contractual steps like opening letters of credit. Consequently, the Court allowed the appeals, set aside the High Court's judgments, and restored the original orders of the Customs authorities.
- Is the benefit of a customs duty exemption available for goods imported after the exemption has been withdrawn?
- Does the filing of a bill of entry before the withdrawal of a customs duty exemption entitle an importer to the benefit of that exemption?
- Are effective steps such as opening a letter of credit sufficient to claim a customs duty exemption after the exemption has been withdrawn?
- Section 19, Customs Act 1969
RUSTAM S. SIDHWA, J.-l. This judgment will dispose of the above three appeals preferred by the Federation of Pakistan and others, appellants, against the consolidated judgment of a learned Single Judge of the Lahore High Court dated 6th February, 1980 accepting the three writ petitions filed by each of the respondents.
2. Leave was granted in these three appeals as leave had already been granted in Federation of Pakistan v. M/s. M. Afzal & Sons and others connected petitions (C.P. Nos. 138-R to 143-R of 1977) where the question of law involved was identical to that raised in the present cases.
3. Ch. Muhammad Faruq, Deputy Attorney-General, appears for the appellants in all the three appeals. He submits that the Karachi Bench of the Supreme Court has already heard the connected appeals and has reserved judgment. He submits that whatever is the decision in those cases, the same shall be binding in the present appeals.
4. Nobody appears on behalf of the respondents.
5. The decision in the case of Federation of Pakistan v. M. Afzal cfc Sons and others connected appeals (C.A. 210 to 215 of 1977) was delivered by a Bench of i.e Judges of this Court on 29th August, 1991. In terms of the decisions in these appeals it was held that where a particular article was exempted from payment of customs duty under section 19 of the Customs Act, 1969, which exemption was later withdrawn, the benefit of exemption was available only in respect of those goods which were imported between the date the exemption was granted and the date it was withdrawn, provided the bills of entry had been filed with the Customs before the date the exemption was withdrawn. In A1 Samrez's case (1986 SCMR1917), which was a judgment delivered by four Judges of this Court, the said benefit was held to be available if between the date the exemption was granted and the date it was withdrawn, effective steps had been taken by the importer to conclude his contract with the exporter and open the letter of credit, in terms of his contract, irrespective of the fact that his goods arrived or bills.
7. For the foregoing reasons, all these three appeals C.A. Nos. 202 to 204 of 1985 are accepted, the impugned judgments of the learned Single Judge dated 6th February, 1980 are set aside and the orders of the Customs Authorities are restored. There shall be no order as to costs.