KARACHI: Hearing a constitutional petition filed by Sindh Engro Coal Mining Company against denial of exemption to a consignment of tyres for Off Highway Dump Trucks, a division bench of High Court of Sindh (SHC) comprising Justice Yousuf Ali Sayed and Justice Osman Ali Hadi ordered release of goods on securing differential amount of duty with the Nazir of the SHC.
Earlier bench heard Akbar Sohail Advocate for the petitioner company who contended that petitioner has claimed exemption under serial No 8, Part-I of the Fifth Schedule to the Customs Act 1969. He further submitted that such denial is inspire of the fact that by judgment dated 30.11.2022 passed in Customs Appeal No K-3591/2022 in respect of similar goods in which Tribunal has affirmed that the Petitioner is entitled to said exemption.
Sardar Zafar Hussain who filed vakalatnama for the department opposed the plea stating that the department has challenged above cited order in a Special Customs Reference Application which is pending before SHC.
The bench held that apparently, the assessment that was subject matter of Custom Appeal No 3591/2022 was that the exemption does not apply to the import of replacement tyres for dump trucks, where as this time the assessment is that such tyres are not intended for the types of vehicles envisaged in the exemption. Be that as it may, and without prejudice to the stance of of either side, since the Petitioner has preferred an appeal against said assessment before the Collector (Appeals) under section 193 of the Customs Act, which has yet to be decided, we are inclined to accept the Petitioners prayer for release of consignment subject to securing the differential duty/taxes.
The bench disposing of the petition, further ordered that security so deposited shall remain with the Court till further orders.