KARACHI: Hearing achallenge to Circular pertaining to regulation and assessment of value of goods exported from EPZ area to Tariff area, a customs appellate bench of High Court of Sindh ordered its suspension while directing the petitioner and official respondents to resolve it as per mechanism provided under Section 24 of the EPZ Ordinance 1980.

Mahnoor Food Industries (Pvt) Limited challenged the Circular dated 13-11-2020 for being issued without jurisdiction. The official respondents include EPZ Authority and Collector Customs KEPZ. The petitioner maintained that impugned circular is a “death warrant” for petitioner and other investors.

The bench noted that while issuing impugned Circular, issuing authority fail to even mention that under which Rule or Section of law it has been issued. The bench further held that a mechanism of dispute resolution is provided for under Section 24 of the EPZA Ordinance 1980 by way of arbitration. The bench with the above observation disposed of the petition directing both the sides to  resolve their dispute as per mechanism  provided under section 24 through arbitration by appointing arbitrator.

The bench said till any finding are given by the Arbitrator, the impugned circular will remain suspended.

Text of judgement follows/attached

SHC C.P No. D-5924 of 2021