Pakistan Customs Tariff Rules---

----Chapters 84 & 87---Constitution of Pakistan (1973), Art.199-- Constitutional petition---Quantum of Customs Duty and Sales Tax payable on terminal tractor---Petition related to dispute as to quantum of Customs Duty and Sales Tax payable to terminal tractor to be used for movement of trailers in container terminal---Claim of petitioner was that imported goods were entitled to concessional rates of Customs Duty in terms of S.R.O. 28(I)/98 dated 17-1-1998 as such concession had already been provided to another importer; alternatively it was contended that imported goods were liable to be classified as prime movers under Chapter 84 of Pakistan Customs Tariff Rules, operating at relevant time---Respondents insisted on treating imported goods as vehicle under Chapter 87 of Pakistan Customs Tariff Rules and were prepared to release said goods only on payment of Duties and Taxes thereunder---No formal adjudication proceedings ever took place and no order determining quantum of duty paid was passed by Adjudicating Officer-- Party who was required to pay taxes needed to know the reason for the levy and avail Appellate and revisional remedies provided by law---High Court under Constitutional jurisdiction could not pronounce upon appropriate classification of imported goods---Case was remanded to Collector to decide same after hearing parties on all questions of facts and law.

Shaiq Usmani for Petitioner.

Raja Muhammad Iqbal for Respondents Nos. 1 & 2.

Nadeem Azhar, Dy. A.-G. for Respondent No.3.

ORDER

The above petition relates to dispute as to the quantum of customs duty and sales tax payable on terminal tractor to be used for movement of trailers in the container terminal being constructed by the petitioner. According to the petitioner the goods imported were entitled to the concessional rates of customs duty in terms of S.R.O. 28(I)/98, dated 17-1-1998. It was alleged that such concession had already been provided to another importer.

Alternatively it was argued that the imported goods were liable to be classified .as prime movers under Chapter 84 of the Pakistan Customs Tariff Rules, operated at the relevant time. The respondents nevertheless insisted on treating them as vehicles under Chapter 87 and were prepared to release the goods only in case the petitioner paid duties and taxes leviable thereunder Accordingly, the petitioner had no option, but to make payment under protest.

However, it appears that no formal adjudication proceedings ever took place and no order determining the quantum of duty paid was' passed by the Adjudicating Officer. The petitioner approached the respondents Nos. 1 and 2 in appeal and revision, who declined to examine their case on merits by simply stating that there was no order, which could be questioned in appeal or revision.

We are constrained to express our, disapproval of such an: approach because a party required to pay taxes needs to know the reason for the levy and avail appellate and revisional remedies provided by law. At the same time, however, it is not possible for this Court to pronounced upon the appropriate classification of the imported goods. We would, therefore, remand the case to the Collector, Collectorate of Customs, Sales Tax and Central Excise, Adjudication-I, Karachi, who will hear the parties on all questions of facts and law and decide the matter within three months from the date the file reaches him. The petitioner undertakes to keep the bank guarantee alive and the learned D.A.-G. undertakes that the same shall not be encashed till the expiry of 15 days after a final order is passed by the Collector.

The petition stands disposed of.

H.B.T./Q-45/K Order accordingly.