KARACHI: An appellate bench of High Court of Sindh comprising Justice Aqeel Ahmed Abbasi and Justice Nazar Akbar deciding an intra-court appeal filed by Collector Customs, Port Muhammad Bin Qasim against judgment and decrees by a single judge of SHC held that disputes relating to special taxation laws cannot be decided by a single judge sitting at original side exercising the powers and functions of a Civil Court.
The bench earlier heard Masooda Siraj advocate assistedby Raja Zafar Hussain advocate, counsel for Collector, MCC, Port Muhammad Bin Qasim who challenged the common judgment in a large number of suits including suit number 1763 of 2016 (Umer Spinning Mills Limited and others).
The dispute arose between importers and custom authorities regarding entitlement of benefits of exemption of duty and taxes in terms of SRO’s issued time to time besides provisions of Schedule V of the Customs Act 1969 and Schedule VI of the Sales Tax Act 1990.
Maoosda Sirajm, counsel for the Port Muhammad Bin Qasim collectorate from the very outset of the proceedings in the suit challenged the maintainability of the suits in view of bar under section 217 of the Customs Act 1969. The customs side maintained that as per special laws, the custom and sales tax authorities alone can adjudge the question of assessment, determination of customs duty, sales tax etc. She maintained that legislature has provided specialized forums and authorities and in case of disputes specialized appellate forums have been provided besides referral jurisdiction of the High Court and appellate jurisdiction of Supreme Court of Pakistan.
It was further contended that jurisdiction of a civil court including the Court of single judge of SHC while sitting at original side would be beyond jurisdiction.
The appellate bench after a detailed hearing accepted the arguments by the appellant side and set aside impugned judgments and decrees issued by the single judge of SHC. The bench however clarified in the concluding para that the bar of jurisdiction is only in respect of entertaining a suit by Civil Courts including the single Judge of SHC while exercising original civil jurisdiction under section 7 of the (West Pakistan) Civil Courts Ordinance 1962 amended by Sindh Civil Court (Amendment) Act 2010 whereas a division bench of High Court can interfere, exercise jurisdiction and adjudicate the same under its referral jurisdiction (Special Customs or Tax Reference).