KARACHI: A divisional bench of High Court of Sindh (SHC) comprising Justice Irfan Saadat Khan and Justice Zafar Ahmed Rajput on Thursday adjourned hearing of a constitution petition filed by Ray Shipping Enterprises until March 03.
The petitioner filing the petition in 1995 and pending since questioned the demand raised by Assistant Collector Customs seeking Customs Duty on a ship once in trading and later sent to Gadani ship breaking yard as scrap.
At the outset of hearing today, Afzal Hussain Ansari advocate submitted that ship owned by the petitioner company was in trading and under the federal government policy in mid 1980 has to encourage the private sector. As a trading ship anchoring and leaving the ports after unloading of cargo, ship was exempted from duties etc.
He said that on the last trip, ship brought in a cargo of steel sheets for Pakistan Steel Mills and was detained by the customs. It was later released but by that time, it was unable to sail. The ship was then sold to a party, which as per sale agreement undertook to pay custom duties etc. The ship then sailed to Gadani ship breaking yard abuzz with the activity. The purchaser was responsible for any liability and not my client, submitted Afzal Hussain Ansari advocate, adding that in this case respondent Custom authorities are demanding double duty one of a trading ship owned by the his client and another duty from purchaser as scrap ship. The demand for double duty is unjustifiable, he said concluding his arguments and stating that burden of any liability lies with the purchase of ship that purchased it as a scrap.
The bench after conclusion of arguments by Ansari advocate put of further hearing until March 03 when Kashif Nazeer advocate, counsel for Pakistan Customs and Asim Mansoor Khan, Deputy Attorney general will make their arguments.