| Case ID |
23314d78-8162-4ca7-8ba0-a5027311d625 |
| Body |
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| Case Number |
Constitutional Petition No.P-518 of 1985 |
| Decision Date |
Apr 17, 1989 |
| Hearing Date |
|
| Decision |
The Sindh High Court declared the orders of the Customs authorities imposing an increased customs duty on ABBAS STEEL INDUSTRIES Ltd. without lawful authority. The court found that the cancellation of the original bill of entry by verbal order was involuntary, entitling the petitioner to pay the duty based on the rate prevailing at the time of the first bill submission. Consequently, the court directed the refund of the excess customs duty paid by the petitioner, stating that the authorities had no legal basis to enforce the higher duty rate retroactively. |
| Summary |
In the landmark case of ABBAS STEEL INDUSTRIES Ltd. versus COLLECTOR OF CUSTOMS (APPRAISEMENT) and others, the Sindh High Court adjudicated a significant constitutional petition concerning the application of the Customs Act, 1969. Filed as Constitutional Petition No.P-518 of 1985, the case revolved around the assessment and imposition of customs duties on imported vessels intended for scrapping purposes. The petitioner, ABBAS STEEL INDUSTRIES Ltd., submitted a bill of entry on June 9, 1982, which was subsequently canceled by an oral order from the Customs authorities, citing a public notice issued on June 6, 1982. Under pressure, the petitioner filed a second bill of entry on June 22, 1982. The Customs authorities assessed a customs duty of 50% ad valorem plus a 5% surcharge on the CIF value of the vessel, a substantial increase from the original 30% ad valorem duty.
The petitioner paid the increased duty under protest and sought a refund of the excess amount, which amounted to Rs.51,46,741. The Assistant Collector of Customs denied the refund, maintaining that the duty was correctly assessed based on the latest rates. The appellant courts upheld this decision, leading the petitioner to approach the Sindh High Court for redressal.
The High Court meticulously examined the provisions of the Customs Act, particularly sections 30 and 79. It was determined that the cancellation of the original bill of entry was not voluntary but was compelled by the verbal orders of the Customs authorities, influenced by the public notice. Consequently, the petitioner retained the right to pay the duty based on the rate applicable at the time of the first bill of entry submission. The court emphasized that the subsequent bill of entry was filed under coercive circumstances and did not negate the petitioner’s vested rights.
In its verdict, the Sindh High Court nullified the orders imposing the enhanced duty, declaring them without lawful authority. The court directed the refund of the excess customs duty to ABBAS STEEL INDUSTRIES Ltd., reinforcing the protection of importers' rights against arbitrary administrative actions. This decision underscores the judiciary’s role in upholding statutory interpretations and ensuring that regulatory authorities adhere to due process and lawful authority in their proceedings. The case serves as a pivotal reference for future litigations involving customs duty assessments and the procedural rights of importers under Pakistani law. |
| Court |
Sindh High Court
|
| Entities Involved |
COLLECTOR OF CUSTOMS (APPRAISEMENT),
ABBAS STEEL INDUSTRIES Ltd.,
CUSTOMS HOUSE, KARACHI
|
| Judges |
SAEED-UZ-ZAMAN SIDDIQUI,
ABDUL RASOOL AGHA
|
| Lawyers |
Sharaf Faridi,
M. Andalib Alvi
|
| Petitioners |
ABBAS STEEL INDUSTRIES Ltd.
|
| Respondents |
and 3 others,
COLLECTOR OF CUSTOMS (APPRAISEMENT),
CUSTOMS HOUSE, KARACHI
|
| Citations |
1989 SLD 999,
1989 CLC 1463
|
| Other Citations |
Not available
|
| Laws Involved |
Customs Act, 1969
|
| Sections |
30
|