| Case ID |
2e449dfd-174b-4e3b-bf89-abc384752745 |
| Body |
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| Case Number |
Civil Petitions No. 389, 696 to 742 of 2022 |
| Decision Date |
Jul 06, 2022 |
| Hearing Date |
Jul 06, 2022 |
| Decision |
The Supreme Court of Pakistan dismissed the Civil Petitions No. 389, 696 to 742 of 2022, thereby upholding the original judgment passed by the Peshawar High Court on December 1, 2021. The Court held that the exemption of customs duties, sales tax, and withholding tax on the import of Hybrid Electric Vehicles (HEVs) under SRO.499(I)/2013 could not be denied based on subsequent circulars issued by the Assistant Collector of Customs. The Court emphasized that the exemption was intended to promote environmentally friendly vehicles and comply with climate change regulations. It was determined that the importers were rightfully entitled to the exemptions granted in the original SRO, and any restrictions imposed thereafter were not legally enforceable. Consequently, the appeals against the recovery of taxes and duties were dismissed, maintaining the benefits originally intended for the taxpayers. |
| Summary |
In the landmark case of Civil Petitions No. 389, 696 to 742 of 2022, the Supreme Court of Pakistan delivered a decisive judgment on July 6, 2022, addressing the contentious issue of customs duty exemptions on Hybrid Electric Vehicles (HEVs). The petitioners, represented by Mr. Abdul Rauf Rohaila, Sr. ASC, challenged the Peshawar High Court's decision that upheld show cause notices issued to importers of HEVs, alleging wrongful exemption claims under SRO.499(I)/2013. Central to the case was the interpretation of the Customs Act, 1969, and related tax ordinances, which provided exemptions to promote environmentally sustainable technologies and combat climate change. The Supreme Court meticulously analyzed the legislative intent behind the exemptions, emphasizing the government's objective to encourage the adoption of HEVs as a step towards environmental compliance and reducing carbon emissions. The Court rejected the Assistant Collector's 2018 circular that attempted to limit exemptions to fully hybrid vehicles, reinforcing that such restrictions were beyond the authority granted by the original SRO. By upholding the original exemption guidelines, the Court affirmed the importance of supporting green technologies in Pakistan’s automotive sector. This judgment has significant implications for importers, tax authorities, and environmental policy, ensuring that fiscal incentives aimed at sustainability remain intact and are not undermined by arbitrary regulatory changes. The decision not only fortifies the legal framework supporting HEV imports but also aligns with global trends in promoting eco-friendly transportation solutions. Keywords such as 'Supreme Court of Pakistan', 'Customs Duty Exemption', 'Hybrid Electric Vehicles', 'Climate Change Act', 'Sales Tax', 'Income Tax', and 'Pakistan Environmental Protection Act' are pivotal in understanding the case's impact on environmental legislation and tax policy. The judgment underscores the judiciary’s role in safeguarding legislative intent against administrative overreach, thereby fostering a conducive environment for sustainable development and green technology adoption in Pakistan. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
High Court,
Appellate Tribunal,
Customs Department,
Deputy Collector Customs (Adjudication),
Collector of Customs (Appeal),
Assistant Collector of Customs, MCC Appraisement-West, Custom House, Karachi
|
| Judges |
Umar Ata Bandial, CJ,
Amin-ud-Din Khan, JJ,
Muhammad Ali Mazhar, JJ
|
| Lawyers |
Mr. Abdul Rauf Rohaila, Sr. ASC
|
| Petitioners |
Others,
Waseef Ullah
|
| Respondents |
Collector of Customs, Model Customs Collectorate, Peshawar
|
| Citations |
2023 SLD 90,
(2023) 127 TAX 302,
2023 PTD 396,
2023 PTCL 428
|
| Other Citations |
Jamat-i-Islami Pakistan v. Federation of Pakistan (PLD 2000 Supreme Court 111),
Government of Pakistan and others v. Messrs. Hashwani Hotel LTD (PLD 1990 Supreme Court 68),
Pakistan through Chairman FBR and others v. Hazrat Hussain and others (2018 SCMR 939),
Mathuram Agrawal. v. State of Madhya Pradesh (AIR 2000 SC 109),
Pakistan Textile Mill Owners Association Karachi V. Administrator of Karachi (PLD 1963 Supreme Court 137),
Pakistan through Chairman FBR and others Vs. Hazrat Hussain and others (2018 SCMR 939),
N. S. Bindra’s interpretation of Statutes (Tenth Edition), (Page No.609-610) (Page No.656-657)
|
| Laws Involved |
Customs Act, 1969,
Income Tax Ordinance, 2001,
Sales Tax Act, 1990
|
| Sections |
19,
32,
32(3A),
148,
182,
3(1)(b),
33(5)
|