KARACHI: The Deputy Attorney General (DAG) representing Federal government was put on notice for Sept 25 by a custom bench of High Court in petition challenging levy on mobile handsets imported in Semi Knocked Down (SKD) form.
The bench earlier heard Khalid Javed Khan Advocate representing petitioner company M/s Innovi Telecom & Another versus Federation of Pakistan. Sardar Zafar Hussain Advocate filed vakalatnama for Pakistan Customs.
The counsel for petitioner argued that mobile sets imported in SKD form for Manufacturing and Assembling. He contended that levy is not applicable on SKD Smart Phones. He referred to a number of judgments of High Court of Sindh which were maintained by the Supreme Court of Pakistan also. It was pleaded that earlier interim orders were passed allowing release of goods against securing surety in respect of amount of levy. The counsel challenged the competency of the federal government in imposing levy under Finance Act.
The bench after due hearing by way of interim arrangement ordered release of goods if surety is deposited with the collectorate concerned. The bench also ordered issuance of notice to the Deputy Attorney General as vires of law has been challenged by the petitioner. The next hearing will be held on 25.9.2024.