SHC stays collection of Additional Custom Duty from manufacturers

KARACHI: A customs appellate bench of High Court of Sindh (SHC) on Monday stayed the collection of Additional Customs Duty (ACD) from manufacturers of vehicles etc given concession in the tax.

The bench comprising Justice Aqeel Ahmed Abbasi and Justice Zulfiqar Ahmed Khan earlier heard Barrister Makhdoom Ali Khan who represented Kia Luck Motors, Indus Motors and Thal Limited. He told the court that a stay is already operating against an earlier SRO which increased ADC from 2 per cent to 7 per cent. He said impugned SRO 572 of 2020 is just replicates the earlier one.

The bench after hearing initial arguments allowed an application for interim orders and restrained the respondents including Pakistan Customs from collecting ACD while putting the respondents on notice.

In two separate but identical petitions filed Master Motors Limited and Fuso Master Motors Limited, the bench rejected the stay applications after counsel for Pakistan Customs Khalid Rajpar Advocate raised objection saying that these two petitioners do not fall in the category granted concession in ACD.

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