KARACHI: A customs appellate bench of High Court of Sindh (SHC) restrained the respondent custom officials from coercive recovery of “Regulatory Duty” while issuing pre-admission notice for Jan 14.

The bench earlier heard a counsel from law firm Franklin Law Associates who submitted that the petitioner is admittedly an  export oriented unit which imports pigment thickener and acrylic thickener being part of textile product during period 29-3-2010 to 16-10-2017. It was maintained by the counsel for petitioner company Messrs Kamal Ltd that there was no tax liability including Regulatory Duty in terms of SRO 326(1) of 2008.

It was contended that the respondents have raised a demand notice towards Regulatory Duty  at the rate of 5 per cent. The counsel argued that this issue have been decided by the Supreme Court of Pakistan in a case titled Collector Customs versus Ravi Spinning Mills and others according to which RD is part of duty and taxes.

The counsel contended that the respondents are not justified in raising the such demand.

The bench after hearing the counsel for petitioner company at length while issuing pre-admission notices to respondents as well as DAG for Jan 14, 2020 ordered that the respondents shall not take any coercive action against the petitioner and shall not recover the disputed amount till next date.