SCAT reserves judgment in Solar power batteries case

KARACHI: A special customs appellate tribunal (SCAT) headed by its chairman reserved orders in an appeal filed by Nizam Energy which imported solar powered systems for electrification of villages of Sindh in partnership with provincial government.

According to details the petitioner company imported system which also included batteries for storing electricity obtained from solar rays. The importer claimed exemption from customs duty under Schedule V of the Customs Act 1969 while exemption was also claimed under section VI of the Sales Tax Act for the financial year 2014-15. The import was made under “Poverty Alleviation” programme and at that time the concession/exemption was allowed but later the Post Clearance Audit reopened the case and a demand was created for rupees 5 Crore, 27 lac. Subsequently a show cause was also issued and ONO was also passed wherein petitioner was asked to pay the duty as well as sales tax. The instant appeal was filed against the ONO.

A counsel  from Franklin Law Associates appearing for the appellant maintained that the demand was illegal as at the time of import and landing of the consignments, the exemption was available which wa rescinded later.

The tribunal after hearing counsel from both sides reserved the order for an unspecified period.

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