Tribunal dismisses PSO’s appeal

KARACHI: The Customs Appellate Tribunal (Bench II) comprising Adnan Ahmed Member (Judicial II) Karachi and Khalid Mahmood Member (Technical-I) Islamabad dismissed an appeal of Pakistan State Oil Company Limited (PSO) for seeking exemption from development surcharge and central excise duty under SRO 455(I)/96.

The tribunal observed that supplies of POL products to Pakistan Navy vessel by PSO could not be treated as export but in fact it was domestic/local supplies for which PSO was liable to make payment of Development Surcharge. Tribunal stated that in the act PSO evaded around Rs107.78 million as Development levy by claiming exemption under SRO 333(I)/2002.

This was observed that the appellant could not be allowed to manipulate the provisions of Customs Act 1969 and Development Surcharge Ordinance 1961 to avoid tax (PDL Surcharge, which were its competitors were/are paying faithfully.

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