SHC issue notices for March 11 to Collector Custom East, West Nishat Mills Limited Demand Notice

KARACHI: Pre-admission notices were issued for March 11 to Collector Customs (MCC East & West) by a division bench of High Court of Sindh (SHC) comprising Justice Aqeel Ahmed Abbasi and Justice Mahmood A Khan.

The bench was hearing a constitution petition filed by Nishat Mills Limited, an export oriented unit through Imran Iqbal Advocate. The petitioner company imports pigment thickener and acrylic thickener as part of textile products. The company challenged the demand notices issued for duty and taxes for the period 29-3-2010 to 16-11-2017. No liability of duty and taxes including regulatory duty in terms of SRO 326(1)/2008 dated 29-3-2008, the counsel submitted.

It was further contended that the respondents have issued  demand  notices towards regulatory duty  at the rate of 5 per cent.  Imran Iqbal advocate argued that legal issue has already been decided in case namely Collector of Customs & others versus  Ravi Spinning Ltd 1999, SCMR 412 according to which regulatory duty is part of duty and taxes payable under  the Customs Act 1969, therefore the respondents are not justified in collecting the said amount

The bench after hearing the counsel ordered issuance of pre-admission notices to Collector Customs East, West while restraining them from  taking any action for coercive recovery till next date of hearing.

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