SHC sets aside federal govt’s decision to deny permission for vintage cars’ import

The Sindh High Court (SHC) has set aside the federal government’s decision with regard to denial of one-time relaxation for the import of two vintage cars and remanded back the matter to the government to decide it afresh through a speaking order on the basis of a proper summary within 10 days.

The high court in the meantime ordered that the auction of two vintage cars, Chevrolet Corvair and Ford Mustang, will not be held during pendency of such determination.

The direction came on petitions that had challenged the federal government’s decision declining the grant of one-time relaxation/permit for import of 1965 Chevrolet Corvair and Ford Mustang. The petitioners had earlier sought the release of vehicles while citing SRO issued by the ministry of finance exempting vintage and classic cars which were manufactured prior to January 1, 1969.

A counsel for the petitioners submitted that the issuance of SRO constituted a representation by the federal government that such a import was permitted and the same gave rise to a legitimate expectation that the imported item would be released upon payment of the duty prescribed therein.

They submitted that the impugned decision disallowing the release of vehicle was an arbitrary and unreasonable exercise of discretion by the respondent.

They submitted that the respondent on the one hand contended that vintage vehicles could not be released but they were also seeking to pave the way for it to be brought into the country by a third party through process of an auction.

A deputy attorney general candidly conceded that the summary and impugned decision of the federal government were defective and declined to defend the same.

The Customs authorities however defended the impugned decision and submitted that clearance of vehicles was rightly refused. The counsel however conceded that if subject vehicles were to be auctioned, the end result would be their release in favour of the auction purchaser for domestic use.

A division bench of the SHC comprising Chief Justice Ahmed Ali M Sheikh and Justice Yousuf Ali Sayeed after hearing the arguments of the counsel observed that the impugned decision reflected no reason whatsoever for the refusal of one-time relaxation by the cabinet and did not constitute a speaking order.

The high court observed that the impugned decision was unreasonable and could not stand.

The SHC observed that it would not go so far as to order clearance/release of the subject vehicles and the matter remained to be decided by the cabinet in terms of an earlier SHC full-bench judgment.

The high court set aside the impugned decision of the federal government to the extent of the subject vehicle and remanded the matter for decision afresh through a speaking order on the basis of a proper summary to be prepared by the finance ministry and placed before the cabinet within 10 days.

The SHC in the meantime ordered that the auction of the subject vehicles would remain in abeyance pending such determination.

It is pertinent to mention that a full bench of the SHC had earlier directed the federal government to consider the cases of vintage car importers for a one-time relaxation under the clause 21 of the 2020 import policy order in respect of vintage cars already imported by them and to decide the same within 10 days.