Federation of Pakistan through the Secretary, Ministry of Finance and 2
This matter concerns a batch of appeals involving the applicability of Section 31-A of the Customs Act, 1969, which was introduced via the Finance Ordinance, 1988, to nullify the ratio of the Supreme Court's judgment in the Al-Samrez Enterprises case. The core legal question was whether the High Court correctly relied on the Al-Samrez Enterprises precedent despite the subsequent legislative amendment. The Supreme Court, referencing its own established jurisprudence, held that for cases where Bills of Entry were presented or Letters of Credit were opened prior to July 1, 1988, the transactions are considered past and closed. Consequently, such cases are not governed by the provisions of Section 31-A of the Customs Act, 1969, and the principles established in the Al-Samrez Enterprises case remain applicable. The Court dismissed the appeals, affirming that the statutory amendment did not retrospectively affect transactions finalized before the specified date, thereby maintaining the vested rights of the parties involved in those past transactions.
- Does Section 31-A of the Customs Act 1969 apply to transactions where Letters of Credit were opened prior to July 1, 1988?
- Are transactions involving Bills of Entry presented before July 1, 1988, considered past and closed transactions?
- Does the introduction of Section 31-A of the Customs Act 1969 nullify the ratio of the Al-Samrez Enterprises case for transactions completed before the amendment?
- Section 31-A, Customs Act 1969
JUDGMENT: NASIM HASAN SHAH, J.--1. All the above-noted appeals have been put up for hearing together as the pivotal point involved in all of them is common, namely, whether the High Court was justified in relying on this Court's judgment in Al-Sanirez Enterprises' case (1986 SCM R 1917 = PTCL 1987 CL. 99) despite the insertion of Section 31-A in the Customs Act, 1969 vide Finance Ordinance, 1988 which sought to nullify the ratio of the aforesaid judgment?
2. Ch. Muhammad Farooq, learned Deputy Attorney-General, has today, however, very fairly pointed out that since the grant of leave to appeal in these cases this Court has had occasion to consider this question and it has found that in all those cases in which Bills of Entry were presented on dates prior to 1st July, 1988 the matter is to be deemed to have become a past and closed transaction, by operation of the prevalent law and, therefore, all such cases were not hit by the provisions of section 31-A (See Molasses Trading and Export (Pvt.) Ltd. v. Federation of Pakistan C.A.
No, 915-K of 1990, decided on 24th September, 1991, 1993 SCM R 1905 = PTCL 1994 CL. 222).
3. Mr. Ashtar Ali, learned counsel for the respondents in some of these appeals, pointed out that the same view was also taken by another Bench of this Court in Federation of Pakistan v. M/s. Mahmood (Pvt.) Ltd. (C.A. No, 187-K/1990, decided on 7th February, 1991).
4. Admittedly in all these appeals the Letters of Credit were opened on dates prior to 1st July, 1988.
Hence the provisions of section 31-A of the Customs Act were not attracted in the facts of these cases and the ratio of Al-Samrez Enterprises' case (1986 SCM R 1917 = PTCL 1987 CL. 99) would be applicable' and could be availed of. These appeals, therefore, are of no avail.
All the above noted appeals must, therefore, fail and are, accordingly, dismissed herewith. The parties, however, will be left to bear their own costs.