LHC removes duty on more than 700 steel items

Ag AFP

LAHORE Good news for the importers of over 700 listed items, including hot rolling steel, flat rolled products of alloy steel, tubes, pipes, allow profiles, wire of iron and some dairy products as the Lahore High Court set aside Statutory Regulatory Order (SRO) for regulatory duty for being issued without lawful authority Tuesday.

There would be no regulatory duty even on import of waste and scrap of tinned iron or steel, turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stamping, whether or not in bundles which had earlier been imposed on these items.

Justice Shahid Karim of the Lahore High Court set aside the SRO for being issued without lawful authority. The Federal Board of Revenue last year in October had got approved SRO No 1035 (1)/ 2017 exercising the powers conferred upon under sub-section (3) of Section 18 of Customs Act, 1969.

M/S Global Steel had moved the petition submitting that the FBR had imposed ‘regulatory duty’ on import of various steel items vide its Serial No 444 to 458 of SRO No 1035 (1)/ 2017. The company’s lawyer argued that question arose that whether approval of federal minister in charge for levy of ‘regulatory duty’ on imported goods was competent under the Constitution of Pakistan, 1973, read-with judgment of apex court in the case of Al-Mustafa impex.

He also presented a copy of the SRO approved by the ministry, showed its content. The counsel said that the federal minister was not empowered to approve for issuance of notification to impose regulatory duty and this act was illegal, unlawful and without lawful authority, hence, the impugned notification is liable to be quashed. He argued that it was crystal clear that the decision of imposing regulatory duty had not been exercised for any valid or bona fide reasons and it was totally irrational, oppressive, unjust and totally violative of the fundamental rights of the company under Article 4, 18 and 25 of Constitution. The company’s lawyer also submitted that imposing regulatory duty on import items on the company was malafide, discriminatory, arbitrary and unjust and, hence, contradictory of statute and the Constitution.

The consignments, the company said, were shipped from China in accordance with the binding contracts/Letters of Credits, entered into prior the imposition of impugned notification which was issued on October 16, 2017; therefore, the goods were releasable without imposition of ‘regulatory duty’. The counsel contended that the regulatory duty can only be imposed to regulate an uncertain market and not to collect additional taxes, or to take away in this garb any reasonable profit that the company might make.

He requested the court to set aside the SRO for being contradictory to the Constitution. The petition was disposed of.

Verdict reserved: Justice Shahid Karim of Lahore High Court reserved decision on the maintainability of a petition filed by a citizen seeking removal of pictures of Chief Minister Shahbaz Sharif from Speedo Buses which are causing huge loss to the national exchequer.

Petitioner Azhar Abbas in his petition challenged the act of the Punjab government contended that politicians are advertising themselves with the money of national exchequer. He implored for the advertisement of Shahbaz Sharif, huge money of the taxes of common people is being spent for this purpose. He implored personal advertisement is being made rather than spending amount on health, education and other sectors to facilitate common people. He prayed the court that directions be passed to remove the pictures of CM Shahbaz Sharif from the said buses.

However, Justice Shahid Karim reserved the decision to decide whether or not the petition is maintainable. Sarabjit case: An additional district and sessions court on Tuesday summoned more prosecution witnesses and adjourned the hearing of Indian spy Sarabjit Singh murder case.

Previously, in 2014, the court had indicted two accused persons Amir Tanba and Mudassir in Sarabjit Singh murder case. Amir Tanba and Mudassir, Kot-Lakhpat inmates, allegedly attacked and killed Indian spy Sarabjit Singh with knife and other sharpened tools. Lahore police had registered a case at the Kot Lakhpat police station under sections 324/34 (planned attempted murder in group) under the Pakistan Penal Code on the complaint of Kot Lakhpat Jail Superintendent Waqar Sumra.