| Case ID |
261b0263-689d-47ea-9659-1a885a4a897b |
| Body |
View case body. Login to View |
| Case Number |
Writ Petition No. 886 of 1993 |
| Decision Date |
Apr 17, 1994 |
| Hearing Date |
|
| Decision |
This petition under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973, assails the demand of the respondents for the payment of custom duty/sales tax on the textile machinery imported by the petitioner. The facts reveal that the petitioner company set up a textile mill in the rural area of District Jhang. The Federal Government exempted machinery imported for setting up new units from custom duty and sales tax. Due to a fire at the Karachi Port, the machinery was destroyed before crossing the customs barrier. The court found that the subsequent import of replacement machinery should be considered as a first import, thus qualifying for exemption. The court ruled that no customs duty or sales tax was payable, allowing the petition. |
| Summary |
The case revolves around the exemption from customs duties and sales tax for machinery imported by SHAH JEWANA TEXTILE MILLS LTD. Following a devastating fire at the Karachi Port, where the machinery was destroyed prior to clearance, the petitioner sought exemption under Notification No. S.R.O. 484(1)/92. The Lahore High Court, presided by Judge MALIK MUHAMMAD QAYYUM, ruled in favor of the petitioner, emphasizing the importance of the circumstances surrounding the import and the legal provisions that facilitated such exemptions. The judgment underscores the significance of clear governmental directives and the legal framework that supports the establishment of new industrial units in rural areas. This case highlights the intersection of customs and tax laws with industrial development policies, reinforcing the need for legal clarity in exemptions for new businesses. Keywords such as 'customs duty exemption', 'sales tax exemption', and 'textile industry legal framework' are essential for understanding the implications of this decision in the context of Pakistani law. |
| Court |
Lahore High Court
|
| Entities Involved |
FEDERAL GOVERNMENT OF PAKISTAN,
SHAH JEWANA TEXTILE MILLS LTD.
|
| Judges |
MALIK MUHAMMAD QAYYUM, J
|
| Lawyers |
Tariq Javed for Petitioner,
Ijaz Ahmad. Dy. Attorney-General for Pakistan for Respondents
|
| Petitioners |
SHAH JEWANA TEXTILE MILLS LTD., LAHORE
|
| Respondents |
2 others,
FEDERAL GOVERNMENT OF PAKISTAN through Secretary, Ministry of Finance, Islamabad
|
| Citations |
1995 SLD 152,
1995 CLC 413
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990,
Customs Act, 1969
|
| Sections |
13,
19
|