COLLECTOR OF CUSTOMS, CUSTOMS HOUSE VS HIRA FAROOQ (PVT.) LTD., LAHORE
1997 P T D 2353
[Supreme Court of Pakistan]
Present: Saleem Akhtar, Mukhtar Ahmed Junejo and Khalil-ur-Rehman Khan, JJ
COLLECTOR OF CUSTOMS, CUSTOMS HOUSE and 2 others
Versus
Messrs HIRA FAROOQ (PVT.) LTD., LAHORE
Civil Petition No.2328-L of 1996, decided on 24/02/1997.
(On appeal against the judgment, dated 3-10-1996 of the Lahore High Court, Lahore in Writ Petition No.9038 of 1996).
Sales Tax Act, 1990---
----S.6---Customs Act (IV of 1969), S.31-A---Constitution of Pakistan (1973), Art..185(3)---Demand for payment of sales tax---Validity---Authority demanding payment of sales tax from importer in respect of consignments where letters of credit had been opened before withdrawal of notification of exemption---High Court had declared such demand to be no legal effect-- Leave to appeal having been granted to consider similar question in another case, leave was also granted in petitioner's case with direction that appeal would be heard alongwith other pending appeals involving similar question of law.
Messrs M.Y. Electronics Industries (Pvt.) Ltd. through Manager v. Government of Pakistan (Ministry of Finance), Islamabad and 5 others 1994 SCMR 2123 ref.
Izharul Haque, Advocate Supreme Court and Tanvir Ahmad, Advocate-on-Record for Petitioners.
Nemo for Respondent.
Date of hearing: 24th February, 1997
ORDER
SALEEM AKHTAR, J.---The petitioners seek leave to appeal against the judgment passed by the learned Judge in Chamber allowing the writ petition filed by the respondent holding that demand for payment of sales tax from the respondent in respect of consignments where letters of credit have been opened before the withdrawal of the notification of exemption is without lawful authority.
2. The respondent had opened 14 letters for credit on various dates ranging between 16-2-1995 to 20-2-1996 for import of copper tubes, aluminium plane indoor/outdoor units and components. It claimed benefit of exemption from sales tax under the S.R.O. No. 504(1)94, dated 9-6-1994. This exemption was withdrawn on 4-4-1996. On arrival of goods the respondent claimed exemption from sales tax, but in view of section 6 of the Sales Tax Act, the petitioners insisted that the respondent was liable to pay the sales tax as section 31-A of the Customs Act was applicable to it.
3. Leave was granted to consider similar question in Messrs M.Y. Electronics Industries (Pvt.) Ltd. through Manager v. Government of Pakistan (Ministry of Finance), Islamabad and 5 others (1994 SCMR 2123). Accordingly leave is also granted in this case. The appeal should be heard alongwith the appeals arising out of the aforestated reported petitions.
A.A./C-1/SC Leave granted.