SHC stays recovery notice of 2 per cent ACD CONCESSION UNDER AUTOMOTIVE POLICY

KARACHI: A notice for recovery of 2 per cent Additional Custom Duty (ACD) imposed upon manufacturers of automobiles issued by Pakistan Customs was stated here on Monday by a customs appellate bench of High Court of Sindh (SHC) comprising Justice Aqeel Ahmed Abbasi and Justice  Mahmood A Khan.

Khalid Javed Khan advocate representing the petitioner side submitted that SRO under which 2 per cent ACD was imposed been superseded by SRO 670 of 2019 under which ACD was increased from 2 per cent to 7 per cent. A stay is already in operation against such enhancement.

The counsel showed a letter issued by the Pakistan Customs to manufacturers asking them to pay 2 per cent till issue of 7 per cent ACD is decided. Once the previous SRO is superseded how can such a demand be raised against it, the counsel argued praying to the court to stay the recovery notice.

The bench allowing the request while adjourning further proceedings ordered issuance of notices to the respondent. It also stayed the recovery notice till further orders.

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