SHC restrains PQA from using Tugs until payment of Custom, duties

KARACHI:-Port  Qasim Authority (PQA), plaintiff in a suit against Federal Board of Revenue and Pakistan Customs was restrained by a division bench of High Court of Sindh on Wednesday from using four tugs imported for handling LNG FSRU.

The bench also ordered the PQA to file the mandatory Goods Declaration (GD) so that defendant Pakistan Customs could assess the Custom duty and other levies.

According to details, PQA imported 04 units of ASD LNG compatible Tugs along with standard machinery and accessories in March 2015. Each Tug was valued at US $ 7,500,000 and a total of US $ 30,000,000 or Rupees 3090,000,000.

 The imported goods were classifiable under HS Code 8904.0000 attracting standard rates  of duty and taxes- CD  at the rate of 20 per cent, Sales Tax at the rate of  17 per cent , additional Sales tax at the rate of 3 per cent and  Income Tax at the rate of 9 per cent and total levies stood at rupees 1466,720,000.

 The PQA filed the suit seeking injunction from the court regarding levy of duty.

 Today when the suit came up for hearing, counsel for Pakistan Customs and FBR submitted that PQA has failed in filing the GD  under section 79 of the Customs Act 1969 on the pretext that matter of tax has been taken up with the FBR and Ministry of Power and Natural Resources.

The defendants alleged that section 14, 18, 26, and 32-A, 79 (b) and 80 of the Customs Act 1969 have been violated.

 The court was also informed that PQA may press the Tugs into action. The court was requested to restrain the plaintiff from using the Tugs till it files GD and pay taxes.

The bench allowing the request asked the PQA counsel to file the GD and also restrained it from using the Tugs for the time being.

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