| Case ID |
228a1c67-0262-4a2a-8067-6121e5b0a396 |
| Body |
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| Case Number |
C.P. No. D-979 of 1995 |
| Decision Date |
Apr 19, 2016 |
| Hearing Date |
Mar 17, 2016 |
| Decision |
The Sindh High Court dismissed the constitutional petition filed by Ray Shipping Enterprises Ltd., ruling that the company was liable to pay customs duties and taxes on a ship that had been imported and subsequently broken up. The court found that the principles of promissory estoppel did not apply, as the petitioner had no vested rights under the Customs Act, which states that no exemptions could be claimed if the imported ship was later scrapped. The court noted that the relevant notifications made it clear that any concession would cease if the ship was broken up, thus the petitioner was liable for the duties and taxes as per the rates applicable at the time of import. The ruling emphasized the importance of adherence to the conditions laid out in the exemption notifications issued by the government, which were aimed at encouraging investment in the shipping industry while ensuring compliance with customs regulations. |
| Summary |
In the case of Ray Shipping Enterprises Ltd. vs. Assistant Collector of Customs, the Sindh High Court addressed the complexities surrounding customs duties related to the import of ships. The petitioner, Ray Shipping Enterprises Ltd., argued that they should not be liable for customs duties on a ship that was imported under a government incentive scheme. However, the court found that the petitioner had subsequently broken up the ship, which triggered the requirement to pay duties under the Customs Act, 1969. The court ruled that the principle of promissory estoppel did not apply, as no vested rights were created when the petitioner imported the ship for business purposes but later opted to scrap it. The decision underscored the significance of understanding the legal implications of government notifications concerning customs exemptions, particularly in the shipping sector. This case serves as a pivotal reference for similar disputes regarding customs duties and the interpretation of statutory provisions in the context of imported goods, highlighting the importance of complying with the conditions set forth by regulatory authorities. |
| Court |
Sindh High Court
|
| Entities Involved |
Ray Shipping Enterprises Ltd.,
Assistant Collector of Customs
|
| Judges |
Irfan Saadat Khan, Justice,
Zafar Ahmed Rajput, Justice
|
| Lawyers |
Muhammad Afzal Siddiqui,
Rana Ikramullah,
Kashif Nazeer,
Captain Rashid Anwer,
Fazal Abbas,
Asim Mansoor Khan
|
| Petitioners |
Ray Shipping Enterprise Ltd.
|
| Respondents |
Respondent No. 3,
Assistant Collector of Customs
|
| Citations |
2016 SLD 1345,
2016 PTD 2760
|
| Other Citations |
1997 SCMR 641,
PLD 1970 SC 439,
1996 MLD 980,
PLD 1978 Lah. 468
|
| Laws Involved |
Customs Act, 1969
|
| Sections |
19(3),
79(3),
82
|