| Case ID |
17897bb2-f427-4ec4-afdb-4877163d652f |
| Body |
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| Case Number |
C.Ps. Nos. D-8281, 8134, 8249, 8260, 8338, 8410, 8 |
| Decision Date |
Nov 14, 2018 |
| Hearing Date |
|
| Decision |
The Sindh High Court declared Circular No. SI/Misc./13/2014:CC(Appr)/375 dated 22.11.2017 issued by the Office of the Chief Collector of Customs Appraisement (South), Custom House, Karachi, as illegal and without lawful authority. The Court found that the amendment in Rule 107(a) of the Customs Rules, 2001, through SRO 564(I)/2017 dated 01.07.2017, which extended the time frame for determining customs values to continue until the valuation ruling is rescinded, modified or replaced, is ultra vires of the Customs Act, 1969 and contradicts the principles established under the WTO system. The Court emphasized that 'at or about the same time' should not be subject to arbitrary extensions, ensuring that customs valuation remains time-sensitive and aligned with international trade standards. Consequently, the impugned Circular was invalidated to protect fair trade practices and uphold national and international legal frameworks. |
| Summary |
In the landmark case decided by the Sindh High Court, Circular No. SI/Misc./13/2014:CC(Appr)/375 dated 22.11.2017 was deemed illegal and without lawful authority. This case, cited as 2019 SLD 2832, 2019 PTD 1964, and 2020 PTCL 492, involved the petitioner SKY OVERSEAS challenging the Federation of Pakistan's customs regulations. The core dispute revolved around the interpretation and amendment of Rule 107(a) of the Customs Rules, 2001, which affected the provisional release of goods under Section 81 of the Customs Act, 1969. The courts scrutinized the amendment introduced by SRO 564(I)/2017, which stretched the validity of valuation rulings indefinitely until they are rescinded, modified or replaced, contradicting the original intent of aligning with WTO standards. The judges, AQEEL AHMAD ABBASI and ZULFIQAR AHMAD KHAN, concluded that such amendments disrupt the balance intended by international trade agreements like GATT and the WTO, which emphasize time-sensitive customs valuations to foster fair trade and economic stability. The decision underscored the necessity for customs laws to adhere strictly to established international frameworks, ensuring that valuations remain accurate and timely, thereby preventing arbitrary or prolonged extensions that could undermine trade efficiency. This ruling not only rectified administrative overreach but also reinforced the legal integrity of customs operations, upholding the principles of due process and alignment with global trade standards. The case also referenced other significant cases, such as Sadia Jabbar v. Federation of Pakistan and Danish Jahangir v., to support the judiciary's stance on the non-binding nature of administrative circulars on judicial functions. By invalidating the circular, the Sindh High Court affirmed the supremacy of legislative statutes over administrative directives, ensuring that customs valuations are conducted within the prescribed legal framework, thereby promoting transparency and fairness in international commerce. This judgment serves as a pivotal reference for future disputes involving customs regulations and their conformity with both national laws and international trade agreements, ensuring that similar administrative attempts to bypass established protocols are curtailed. |
| Court |
Sindh High Court
|
| Entities Involved |
Federal Board of Revenue,
Federation of Pakistan,
Customs House, Karachi,
SKY OVERSEAS,
Office of the Chief Collector of Customs Appraisement (South)
|
| Judges |
AQEEL AHMAD ABBASI,
ZULFIQAR AHMAD KHAN
|
| Lawyers |
Asad Raza,
Salman Yousuf,
Ms. Dilkhurram Shaheen,
Imran Iqbal Khan,
Ghulam Hyder Sheikh,
Manzar Hussain,
Darvesh K. Mandhan,
Mukesh Kumar G. Karara,
Nasrullah Korai,
Salman Aziz,
Adeel Awan,
Ghulam Nabi Shar,
Shayan Karimi,
Muhammad Ishaq,
Mrs. Masooda Siraj,
Muhammad Rashid Arfi,
Iqbal Khurram,
Khalid Rajpar,
Abdul Rasheed Sheikh,
Saeed Ahmed Watto,
Masood Ahmed,
Muhammad Qasim,
Rana Sakhawat Ali,
Muhammad Khalil Dogar,
Ms. Nuzhat Shah,
Ghulam Murtaza,
Mirza Nadeem Taqi,
Dr. Shah Nawaz,
Mir Hussain Abbasi
|
| Petitioners |
SKY OVERSEAS THROUGH AUTHORIZED ATTORNEY
|
| Respondents |
FEDERATION OF PAKISTAN THROUGH SECRETARY, REVENUE DIVISION AND 4 OTHERS
|
| Citations |
2019 SLD 2832,
2019 PTD 1964,
2020 PTCL 492
|
| Other Citations |
Sadia Jabbar v. Federation of Pakistan 2018 PTD 1746,
Danish Jahangir v. The Federation of Pakistan through Secretary/Chairman and 2 others 2016 PTD 702,
Central Insurance Company v. Central Board of Revenue 1993 SCMR 1232
|
| Laws Involved |
Customs Rules, 2001,
General Agreement on Tariff and Trade, 1994,
Customs Act, 1969,
Implementation Agreement
|
| Sections |
R.107,
107(a),
VII,
25(1)(2)(5)(6)(7)(9),
25A,
25D,
79,
81,
1,
2,
3,
5,
7
|