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M/s Atlas Honda challenges SROs 630/2018 & 670(1)/2019 in SHC

M/s Atlas Honda challenges SROs 630/2018 & 670(1)/2019 in SHC

KARACHI: Atlas Honda Limited approached the Sindh High Court (SHC) against the imposition of additional customs and other duties under the garb of impugned SROs 630/2018 & 670(1)/2019 within 5 year period on its imported items.

On November 1, 2019, counsel for the petitioner submits that petitioner is primarily engaged in the import of raw materials, sub-components, components, sub-assemblies, and CKD kits, which are then used to manufacture parts and assemble motorcycles at the petitioner’s plant.

He further submits that petitioner is also engaged in the manufacturing, assembling, marketing, distribution and sale of motorcycles and spare parts and seeks to challenge the imposition of additional customs duty through above mentioned SROs on the petitioner’s imports of raw materials, sub-components, components, sub-assemblies, and complete knock down (CKD) kits for the manufacture and assembly of motorcycles.

He argued that without prejudice to the foregoing, the impugned SROs are unconstitutional and illegal, it violates articles 18, 24 and 25 of the constitution.  They are, therefore, liable to be stuck down and section 18 (5) of the Customs Act 1969 in ultra vires the constitution, the petitioner made huge investments and expanded its manufacturing facilities on the basis of the commitment crystallized through the notification dated 02/06/2016, the respondents cannot run way from their binding commitments.

Citing chairman FBR, collector Customs Appraisement East, West and Port Muhammad Bin Qasim as respondents, petitioner pleaded the court to declare that above mentioned SROs are illegal and petitioner is not liable to pay any customs duty, including but not limited to additional customs duty, under the impugned SROs, or otherwise, in excess of 1 percent for raw material, 10% for sub-components and components, 20% for sub-assemblies and 15 percent for CKD kits for motorcycles.