Notice issued: SHC questions status of duties on energy savers import
Court responds to petition after consignment detained by customs.
The customs authorities had exempted the import duty under the exemption allowed by the Alternative Energy Development Board via orders passed on September 27 and October 11 last year. PHOTO: FILE
The Sindh High Court (SHC) has issued a notice to the Attorney General of Pakistan to explain the current status of the application of tax duties on the import of energy saving lamps under the government’s initiative.
Justice Irfan Saadat Khan, who headed the bench, was hearing a petition filed by a Lahore-based importer firm against the detention of its consignment, containing thousands of energy saving lamps, due to alleged non-payment of tax duties.
MMYZ International had taken the secretary revenue division, collector and deputy collector customs (appraisement) department.
Arif Motan, the petitioner’s lawyer, informed the court that his client had imported two consignments of energy saving lamps on which no tax was deducted by the customs authorities because the imports were duly allowed in view of the Statutory Regulatory Order (SRO) dated March 19, 2011.
Currently, the petitioner imported the third consignment on which the tax was deducted by the customs authorities, who claimed the imported items are not exempted from tax duty, he stated. The lawyer complained that the third consignment of the energy saving lamps have also been detained by the port authorities, who are now claiming tax in respect of the two previous consignments.
According to the lawyer, the customs authorities are without lawful authority and jurisdictions are claiming the tax duty under the section 148(5)(6) of the Income Tax Ordinance 2001, which is an illegal act and against the Lahore High Court’s ruling.
Secondly, the customs authorities had exempted the import duty under the exemption allowed by the Alternative Energy Development Board via orders passed on September 27 and October 11 last year.
The lawyer pleaded to declare the demands for import duty recovery on the energy saving lamps illegal and a violation of the government’s duty exemption policy. He also sought direction for the port authorities to immediately release the detained consignment.
After the initial hearing, Justice Irfan Saadat Khan issued a notice to the respondents and the Attorney General of Pakistan to explain the government’s policy in this regard.
Published in The Express Tribune, January 9th, 2014.
Justice Irfan Saadat Khan, who headed the bench, was hearing a petition filed by a Lahore-based importer firm against the detention of its consignment, containing thousands of energy saving lamps, due to alleged non-payment of tax duties.
MMYZ International had taken the secretary revenue division, collector and deputy collector customs (appraisement) department.
Arif Motan, the petitioner’s lawyer, informed the court that his client had imported two consignments of energy saving lamps on which no tax was deducted by the customs authorities because the imports were duly allowed in view of the Statutory Regulatory Order (SRO) dated March 19, 2011.
Currently, the petitioner imported the third consignment on which the tax was deducted by the customs authorities, who claimed the imported items are not exempted from tax duty, he stated. The lawyer complained that the third consignment of the energy saving lamps have also been detained by the port authorities, who are now claiming tax in respect of the two previous consignments.
According to the lawyer, the customs authorities are without lawful authority and jurisdictions are claiming the tax duty under the section 148(5)(6) of the Income Tax Ordinance 2001, which is an illegal act and against the Lahore High Court’s ruling.
Secondly, the customs authorities had exempted the import duty under the exemption allowed by the Alternative Energy Development Board via orders passed on September 27 and October 11 last year.
The lawyer pleaded to declare the demands for import duty recovery on the energy saving lamps illegal and a violation of the government’s duty exemption policy. He also sought direction for the port authorities to immediately release the detained consignment.
After the initial hearing, Justice Irfan Saadat Khan issued a notice to the respondents and the Attorney General of Pakistan to explain the government’s policy in this regard.
Published in The Express Tribune, January 9th, 2014.