KARACHI: A constitutional petition filed by Messer’s Akhundzada Associates (Pvt) Limited was allowed while petition filed by M/s Tec Style Emporium was dismissed by a custom appellate bench of High Court of Sindh.
M/s Tec Style sought directions against Custom Collectorate SAPT for delivery of goods purchased in auction through open bidding. Rana Shakawat Ali represented M/s Tec Style while Imran Iqbal Khan appeared for the importer seeking delivery and restraining order against the auction proceedings.
The counsel for bidder maintained that besides earnest money remaining amount of rupees 19.5 million was deposited hence a vested right has accrued in his favor. It was further maintained that delivery order was also issued but petitioner was restrained from taking delivery. It was also submitted that Importer failed in filing the GD within stipulated time.
The counsel for importer in his counter arguments maintained that goods are meant for supply to Pakhtunkhawa Energy Development Organization and dispute pertains to exemption from Sales Tax.and hence processing of GD was delayed. The bench was informed that the GD was filed on 29.9.2023 and duties and taxes were paid claiming certain exemptions whereas auction was conducted on 25.01.2024.
Agha Shahid Majeed Khan representing SAPT collectorate argued that Rules 75 of Custom Rules2001 empowers collectorate to cancel the auction proceedings at any stage.and that goods are meant for a government agency and therefore cannot be put to auction.
The bench after a detailed hearing noting that auction amount was 57 per cent of the total actual value of goods. The bench held that “When auction proceedings are tainted with serious lapses causing prejudice to the owner of the goods, Courts can always take notice of it”.
The bench the allowed petition by the importer and dismissed the petition filed by auction bidder.