Judgment reserved in Power Generators concession case

KARACHI: Justice Muhammad Junaid Ghaffar of High Court of Sindh (SHC) on Friday reserved judgment in suits filed by Artistic Fabrics Limited and others seeking 5 per cent concession on Sales Tax on imported Power Generators of 1100 KVA and above.

Rashid Anwar advocate, counsel for plaintiffs submitted concluding arguments after arguments by Kashif  Nazerer Advocate, counsel for Pakistan Customs Appraisement. Masooda Siraj advocate represented Pakistan Customs, Valuation.

Rashid Anwar advocate relied on the SRO issued by the FBR and said concession existed at the time when plaintiffs imported the power generators. The concession was subsequently with drawn by the Federal Board of Revenue. The board decided that concession would be available to the independent power producers whose electricity generated is added to the National Grid.

The defendants maintain that suits are barred under section 217 of the Customs Act 1969 as anything done by the government officials in good faith cannot be challenged before any court of law.

The FBR has revoked the concession available to the textile units who have imported this class (1100 KVA) generators and are producing power/electricity for their own in-house consumption, the defendants maintains justifying the levy of 5 per cent Sales Tax and demand there under. To a query by the court, Kashif Nazeer advocate submitted that exemption was “general” at relevant time and everybody could have availed that same.  There was a time when federal government allowed special concession to some sectors particularly power generating units and fuel (CNG).

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