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M/s Hinopak Motors moves SHC, challenges SRO 670/2019

M/s Hinopak Motors moves SHC, challenges SRO 670/2019

KARACHI: M/s Hinopak Motors Limited approached the Sindh High Court (SHC) and filed a constitutional petition against imposition of additional duty and other taxes under the garb of SRO 670/2019 on its motor vehicles for transportation of passenger and goods including trucks, road tractors and buses etc. On 5 December 2019, counsel for the petitioner argued that petitioner is engaged in the business of assembling and distribution of motor vehicles for transportation of passenger and goods including trucks, road tractors and buses etc and being one of the leading manufactures/ assemblers of busses. He submitted that petitioner is aggrieved by the arbitrary and illegal application of SRO 670(1)/2019 dated June 28, 2019 which purports to levy, demand and collect additional customs duty on import of goods specified in first schedule to the customs act, 1969, this includes import of components for the manufacture/ assembly of vehicles by the petitioner. He further submitted that the additional customs duty imposed under SRO 670/2019 is inapplicable to imports made by the petitioner during the period of 2016 to 2021 as any duty including additional customs duty imposed under the act 1969, in excess of the maximum duty including additional customs duty as provided in tariff plan, for vehicles as well as raw material, sub component, components, assembly, sub assembly, CKD (localized and no localized), falling under respective PCT Heading is not payable. Citing secretary finance, Ministry of Industries and Production, chairman FBR, collector of Customs Appraisement West, East and Port Qasim as respondents, petitioner pleaded the court to declare that act of the respondents is illegal, mala fide and arbitrary. He further pleaded the court may no customs duty or additional customs duty or any other duty or tax could be lawfully charged, collected or demanded by the respondents on the basis of a notification which has since been superseded or repealed and is no longer in field.