SHC remands back petition filed in 2005

KARACHI: A petition filed by Caltex Oil Pakistan limited filed in 2005 was decided here recently in 2019 as a custom appellate bench of High Court of Sindh after hearing the parties remanded the case back to respondent no 4, Deputy Collector, Appraisement, Group VI to decide the issue that whether the petitioner company is a manufacturing industry or a marketing agency.

Iftikhar Javed Qazi appearing for the petitioner company submitted that petition was filed on ground that Respondent DC refusal to allow exemption under SRO 455(1) of 2004 was unjustified. He contended that the Caltex Oil is registered as a manufacturing industry and is paying excise duty as such. He prayed to the court to give directions to the respondents to accept the two consignments to be exempted from levy of custom duty being a manufacturing industry.

Afsheen Aman advocate appearing for the customs opposed the prayer and said that after due inquiry, the respondents refused exemption to the petitioner . She also contended that a question of fact cannot be agitated in a constitution petition.

The bench later perused the impugned letter dated 17-1-2005 and said respondent no 4 did not recorded reasons for coming to the conclusion that petitioner is not a manufacturing industry. It is well settled proposition of law that while passing any order, authority has to give valid and cogent reasons. The bench remanded the case back to the respondent no 4 to examine the case afresh and while allowing or disallowing the request of the petitioner shall record valid and cogent reason as to the status of the petitioner. The Respondent no 4 was also directed to decide the matter in two months time.

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