KARACHI: A bench of Supreme Court of Pakistan granted leave to appeal in a case of benefits availed under SRO 439 (1) of 2001 by an importer of textile looms.

The bench comprising Justice Gulzar Ahmed and Justice Maqbool Baqar earlier heard Raja Muhammad Iqbal Advocate who represented appellant Collector Customs, appraisement (I) against order  by Sindh High Court dated 21-5-2015 in Special Customs Reference Appeal (SCRA 234 of 2010). The order was in favor of respondent Tulip Towel Industries Private Limited.

Raja Muhammad Iqbal in his arguments submitted that four out of 14 looms imported by the respondent imported by them at concessionary rate of 5 percent ad valorem under SRO 439 (1) of 2001 were never installed nor commissioned. He contended that respondents were required to export 50 percent of production from said looms. The respondents were also bound to furnish indemnity bond undertaking to pay custom duty ‘on demand’ by the custom authorities.

As the conditions for availing concessions under the above cited SRO were not met, appellant raised a demand for payment/encashment of indemnity bond but they failed to do so.

A division bench of Sindh High Court also ruled in favor of the respondent against which the instant leave to appeal was filed.

The bench after hearing the counsel for appellant granted the leave to appeal to consider facts and implication of non-compliance of SRO.