| Case ID |
0a5f9ca1-ec53-45de-8407-5afaa3112edf |
| Body |
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| Case Number |
D-4658 of 2018 |
| Decision Date |
Aug 06, 2020 |
| Hearing Date |
Jul 06, 2020 |
| Decision |
The Sindh High Court ruled that the amendments made in Section 18(3) of the Customs Act, 1969, through the Finance Act, 2017, were ultra vires the Constitution, and as such, the imposition of Regulatory Duty through Notification SRO No. 1035(I)/2017 was declared unconstitutional. The Court also directed that any regulatory duties collected during the period from the commencement of the Finance Act, 2017, to the date of commencement of the Finance Act, 2018, could not be validated through subsequent amendments. The Court mandated the return of amounts collected as Regulatory Duty during this period, emphasizing the need for compliance with constitutional provisions regarding delegated legislation and the authority of the Federal Government. |
| Summary |
The case revolves around the legal challenge against the imposition of Regulatory Duty on imports under the Customs Act, 1969, specifically targeting the amendments made by the Finance Act, 2017. The petitioners, Dewan Motors (PVT.) LTD, contested the legality of these amendments and the subsequent imposition of duty through Notification SRO No. 1035(I)/2017. The Sindh High Court, presided over by Justices Aqeel Ahmed Abbasi and Abdul Maalik Gaddi, ruled that the amendments violated constitutional provisions, emphasizing that the Federal Government alone, represented by the Cabinet, holds the authority to impose such duties. The Court's decision highlights the importance of constitutional adherence in legislative actions, particularly regarding the delegation of powers. The ruling not only invalidated the amendments but also mandated the refund of duties collected during the contested period, reinforcing the principle that legislative actions must comply with constitutional mandates. This case exemplifies the judiciary's role in upholding the rule of law and protecting citizens from unlawful taxation. |
| Court |
Sindh High Court
|
| Entities Involved |
FEDERATION OF PAKISTAN,
DEWAN MOTORS (PVT.) LTD
|
| Judges |
AQEEL AHMED ABBASI,
JUSTICE ABDUL MAALIK GADDI
|
| Lawyers |
Mansoor Usman Awan,
Muhammad Khalil Dogar,
Hyder Ali Khan,
Haider Waheed,
Muhammad Aqeel Qureshi,
Masooda Siraj,
Ghulam Haider Shaikh,
Asad Raza Khan,
Kashif Nazeer,
Sohail Muzaffar,
Imran Iqbal Khan,
Rana Sakhawat Ali,
Muhammad Adeel Awan,
Dr. Shahnawaz Memon,
Haroon Dugal,
Muhammad Adnan Moton,
Khalid Jawaid Khan,
Ms. Amber Lakhani,
Abdul Moiz Jafery,
Navin Merchant,
Salman Yousuf,
Ali Aziz,
Sami-ur-Rehman,
Dil Khurram Shaheen,
Zain-ul-Abdin Jatoi,
Kelash,
Manzar Hussain,
M. Zaheer-ul-Hassan,
Talha Makhdoom,
Hanif F. Ahmed,
Irfan Ali,
Taimoor Ahmed,
Darvesh K. Mandhan,
Muhammad Anas Makhdoom,
Khalid Mehmood Rajpar,
S. Asif Ali,
S. Mohsin Imam,
Nuzhat Shah,
Maimoona Nasreen,
Muhammad Ameenullah Siddiqui
|
| Petitioners |
DEWAN MOTORS (PVT.) LTD THROUGH AUTHORIZED OFFICER AND OTHERS
|
| Respondents |
FEDERATION OF PAKISTAN THROUGH SECRETARY MINISTRY OF FINANCE AND 3 OTHERS
|
| Citations |
2021 SLD 196,
2021 PTD 232,
(2021) 124 TAX 30
|
| Other Citations |
Premier Systems v. Federation of Pakistan and others 2018 PTD 861,
Mustafa Impex, Karachi and others v. The Government of Pakistan and others PLD 2016 SC 808,
Molasses Trading and Export (Pvt.) Ltd. v. Federation of Pakistan 1993 SCMR 1905,
Shri Prithvi Cotton Mills Ltd. and others v. Broach Borough Municipality and others AIR 1970 SC 192,
Dehli Cloth and General Mills Co. Ltd. and others v. State Rajasthan and others AIR 1996 SC 2930,
The Province of East Pakistan and others v. MD Mehdi Ali Khan and others PLD 1959 SC (Pak) 387,
Commissioner of Sales Tax (West), Karachi v. Kruddsons Ltd. PLD 1974 SC 180,
Sales Tax and Central Excise v. Pak Suzuki Co. Ltd. 2016 SCMR 646,
Income Tax Officer v. Sulaiman Bhai Jiwa PLD 1970 SC 80,
Wajid Ali v. Globe Automobiles 1993 SCMR 819,
Mamukanjan Cotton Factory v. Punjab Province PLD 1975 SC 50,
Haji Dossa Limited v. Province of Punjab 1973 SCMR 2,
Indian Aluminum C. v. State of Kerala AIR 1996 SC 1431,
Shahmurad Sugar Mills v. Union Council 1990 MLD 305,
Misrilal Jain v. State of Orissa AIR 1977 SC 1686,
State of Maharashtra v. Central Provinces Managanese Ore Co. AIR 1977 SC 879,
Koteswar Vittal Kamath v. K. Rangappa Baliqa AIR 1974 SC 1480,
Mohd. Shaukat Hussain Khan v State of Andhra Pradesh AIR 1974 SC 1480,
Army Welfare Sugar Mills v. Federation of Pakistan 1992 SCMR 1652,
Fecto Belarus Tractor v. Government of Pakistan PLD 2005 SC 605,
Mirpurkhas Sugar Mills Limited v. District Council, Tharparkar through Chairman and 3 others 1991 MLD 715,
The Province of East Pakistan and another v. MD Mehdi Ali Khan and others PLD 1959 SC 387,
Shukar Din (Naik No. 411) and others v. Major Abaidur Rehman and others PLD 1965 Lah. 522,
B. Krishna Bhat v. State of Karnataka and another AIR 2001 SC 1885
|
| Laws Involved |
Customs Act, 1969,
Constitution of Pakistan, 1973
|
| Sections |
18(3),
221A,
221A(2),
98
|