Grey fabric case controversy: SCP dismisses appeal by Pakistan Customs

KARACHI: A full bench of Supreme Court of Pakistan (SCP) of Pakistan comprising Justice Amir Hani Muslim, Justice Qazi Faez Isa and Justice Faisal Arab on Thursday dismissed an appeal filed by Pakistan Customs, Collectorates of West, East and Port Muhammad Bin Qasim against Horizon International and another.

The appellant challenged an interim order passed by an appellate bench of SHC headed by Justice Munib Akhtar wherein appellant department was directed to release the grey fabric as an interim arrangement.

The consignments were detained on alleged ground that grey fabric imported from Dubai was in fact made in India and import of such material of Indian origin was banned.

The respondents/ importers maintained that the fabric in dispute was of China origin and as per Bill of Landing ( B/L) it was lawfully imported from Dubai’s free port.

The customs disputed the same alleging that no company in China make the fabric in dispute. The SHC however as an interim arrangement ordered release of the consignments on payment of custom duty and other taxes but the department preferred an appeal against this order.

Today Ghulam Hyder Shaikh, Ghulamullah Shaikh advocates duly instructed by Faisal Ghani, CEO of Franklin Law Associates defended the order passed by the SHC. The relied on BL from Dubai and said as purchaser/ importer they cannot ask the seller at Dubai about the origin of the item in dispute, however they were convinced by the seller that fabric was “ made in China “.

The apex court bench after hearing the counsel for Pakistan Customs dismissed the leave to appeal holding that interim order passed by the SHC needs no interference.

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