IHC overturns decision to reimburse Afghan carrier for Rs2.2m paid in customs duty

High court dismisses private airline’s appeal for the return of duty

ISLAMABAD: The Islamabad High Court (IHC) on Tuesday rejected the request of a private Afghan airline seeking return of more than Rs2.2 million in custom duties. IHC Chief Justice Athar Minallah headed the two-member bench, which included Justice Mian Gul Hassan Aurangzeb, that issued the written order.

According to the detailed order, the Afghan airline did not have the license of the ministry of defense that is available with other airlines. As per the rules, only licensed airlines can avail the relief available whereas an airline without license does not have this facility.

Advocate Adnan Haider Randhawa pursued the case on behalf of the Collectorate of Customs. The written order states that the Afghan private airline had paid Rs22,056,717 as duty on April 14, 2015, to import engine starter for its aircraft. At that time, the aeroplane was standing at the now-defunct Benazir Bhutto International Airport in Islamabad.



According to the judicial order, the Civil Aviation Authority confirmed that the starter was installed in the plane. However, after that the airline asked for reimbursement of custom duty as the starter was brought on a temporary basis, and had been exported back.

The claim was rejected by the deputy collector of the custom department on November 21, with a written order. Later, the collector of Customs Islamabad also rejected the airline’s appeal.

However, the next forum, the Custom Appellate Tribunal Islamabad, approved the request of the private airline for the return of the amount of duty paid. The Collectorate of Customs filed an appeal in the Islamabad High Court against the decision given in favor of the airline.

The appellate tribunal’s decision was overturned by the IHC, and it had issued a brief order on January 23, after which the detailed order was released yesterday.