KARACHI: The commercial sale of Liquefied Natural Gas was expected to be delayed as a result of litigation between the importer Engro Elengy Terminal Limited (EETL) and Pakistan Customs over Customs Duty and other taxes.

The importer filed a suit before High Court of Sindh (SHC) bearing number 1084/2015 through his counsel Barrister Makhdoom Ali Khan seeking exemption under SRO 678(1)/2004. The plaintiff/ importer imported a Floating Storage And Regasification Unit (FSRU). The unit was meant for converting Liquefied natural gas to Natural Gas. The unit has a storage capacity of 150,0000 cubic meters and has an onboard plant to turn super chilled liquid methane into gas. The plaintiff filing the Goods Declaration claimed full exemption against corporate guarantee within the meaning of clause VII of the SRO under condition that Vessel is imported on a temporary basis the plaintiff maintains that at the time of import, this SRO was in field, which was suddenly modified under SRO 337(1)/2015. It was also contended that the under the amended SRO words “including Floating Storage Regasification Unit “after words “equipments”. Under the amended SRO, FSRU was deemed to be considered as “plant machinery and equipment of a floating LNG Terminal” thus the exemption given under earlier SRO 678(1)/ 2004 was withdrawn. The GD was assessed and importer was asked to pay Customs duty and taxes amounting to Rupees 2855.9 million at which the plaintiff moved the SHC maintaining that amended SRO cannot be imposed with retrospective effect and thus claim of the FBR/ Customs was illegal.