SHC dismiss petition by Gas & Oil Limited Pakistan

Karachi: “The petroleum levy is to be charged, levied and paid at the rate (s) as notified under the 1961 Ordinance and as prevalent at the time of actual payment of the same along-with Custom Duty” held a Custom Appellate bench of High Court of Sindh while dismissing a petition filed by Gas & Oil Limited Pakistan.

The petitioner company moved the court seeking declaration that act of the Respondent (Pakistan Customs) to malafidely delay and refuse the process, payment of duties including custom duty, petroleum levy in respect of different Goods Declaration was without jurisdiction illegal and vide.

According to details, petitioner company imported a consignment of Motor Spirit consisting of 31444 Metric Tons which was allowed ‘into Bonding’ as per practice against various GDs. There-after  ex-bonding of 21561 Metric Tons was allowed while remaining quantity was with-held followed by raising of demand for payment of additional amount of petroleum levy pursuant to the Notification dated 01-03-2020.

The respondent officials appearing along with Khalid Rajper Advocate disputed the assertion by the petitioner of approaching them with pay orders before time. The counsel for respondents contended that amount is to be paid on the basis of the rate prevalent at the relevant time and not by virtue of the date of filing of GD.

The counsel for custom also submitted that all other companies are following the notification, making payment and no objection was raised by them.

The bench comprising Justice Muhammad Junaid Ghaffar and Justice Agha Faisal relying of different case law and judgment by superior court expressed disagreement with the petitioner’s counsel.

“We are of the considered view that the petroleum levy is to be charge and paid on the basis of Notification issued by the Ministry of Petroleum from time to time and its applicability and determination has no nexus with filing of GD or for fixation of rate of custom duty pursuant to filing of GD under section 30 of the Customs Act 1969. The petroleum levy is to be charged, levied and paid at the rate (s) as notified under the 1961 Ordinance and as prevalent at the time of actual payment of the same along-with Custom Duty, the bench held in its judgment dismissing the petition.

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