| Case ID |
1f29f7f8-59e3-4e0f-a93f-3abd0e825578 |
| Body |
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| Case Number |
Writ Petition No.363 of 1994 |
| Decision Date |
Nov 06, 2002 |
| Hearing Date |
Nov 06, 2002 |
| Decision |
The Lahore High Court ruled that the imposition of a 2% import fee on machinery was void due to the lack of corresponding services rendered by the respondents. The court emphasized that fees must be commensurate with services provided and that the fee charged was effectively a tax without proper legislative authority. The court directed that if the import fee had been paid, it should be refunded to the petitioner. The decision highlighted the importance of transparency in fee structures associated with government services. |
| Summary |
In the case of DEWAN SALMAN FIBRES LIMITED vs. FEDERAL GOVERNMENT OF PAKISTAN, the Lahore High Court addressed the legality of an import fee imposed on machinery imports under the Import Policy Order, 1993. The petitioner, Dewan Salman Fibres Limited, contested the imposition of a 2% ad valorem fee, arguing that no services were provided in return for this fee, which rendered it effectively a tax. The court examined the provisions of the Import Policy and found that the fee lacked a basis in law, as there were no corresponding services offered by the government for the import fee collected. The court referenced previous cases to underline that fees must be justified by the services rendered to the petitioner. Ultimately, the court declared the imposition of the fee void and ordered its refund, reinforcing the principle that charges levied by the government must be transparent and justified by actual services provided. This case underscores the ongoing debate regarding the nature of fees versus taxes in governmental policy, emphasizing the necessity for clear legislative authority and accountability in public service charges. |
| Court |
Lahore High Court
|
| Entities Involved |
FEDERAL GOVERNMENT OF PAKISTAN,
DEWAN SALMAN FIBRES LIMITED
|
| Judges |
MAULVI ANWARUL HAQ, JUSTICE
|
| Lawyers |
Tariq Javed for Petitioner,
Ch. Sultan Mansoor for Respondents
|
| Petitioners |
DEWAN SALMAN FIBRES LIMITED
|
| Respondents |
2 others,
FEDERAL GOVERNMENT OF PAKISTAN through the Secretary, Ministry of Commerce, Islamabad
|
| Citations |
2003 SLD 764,
2003 CLD 511
|
| Other Citations |
Ayaz Textile Mills Ltd. v. Federation of Pakistan through Secretary, Commerce and another PLD 1993 Lah.194,
Sri Gadadhar Ramanuj Das and others v. The Province of Orissa and another AIR 1950 Orissa 47
|
| Laws Involved |
Import Policy Order, 1993
|
| Sections |
3,
594(I)/93
|