P L D 2000 Karachi 296 (PLP)

S. A. RABBANI, J.--The petitioner is a public limited company manufacturing power cables and conductors. For such manufacture, the petitioner import raw material which, according to the averments in the petition, though chargable to Customs duty at the rate of 65 per cent. were exempted from the Customs duty in excess of 10% ad valorem by virtue of S.R.O. 601(1)/83 dated 11-6-1983. Through SRO 1050(1)/95 the Government in exercise of the power conferred by section 18(2) of the Customs Act; 1969 the Federal Government imposed a regulatory duty on imports of goods appearing in the First Schedule to the said Act. This SRO itself created some exemptions from the regulatory duty, one being on the goods chargeable to duty at the rate of 65 per cent. ad valorem. The petitioner imported raw materials and claimed that they are entitled to the abovementioned exemption given in the SRO.No.1050(1)/95 dated 29-10-1995. The respondents did not accept the claim and for the purpose of clearance of the raw material, the petitioner made payment of the regulatory duty under protest, for the refund whereof they prayed in the petition. Mr. Sirajul Haque Memon, learned counsel for the petitioner contends that the duty chargeable on the raw materials imported by the petitioner is at the rate of 65 per cent. and, therefore, the petitioner is entitled to the exemption given in clause (ii)(b) of the SRO 1050(1)/95 dated 29-10-1995 despite exemption given by SRO 601(1)/83, dated 11-6-1983. The contention has not been rebutted and is not disputed in the parawise comments filed by the respondents in reply to the petition. He relied upon 1999 SCMR 412. In that matter, it was contended before the Hon'ble Supreme Court on behalf of some respondents that the goods imported by them were already subject to statutory duty of 65 per cent. and, therefore, in terms of the notification issued by the Government on 29-10-1995 under section 18(2) of the Act the regulatory duty could not be enforced against import of such goods. The Court observed that the notification issued under section 18(2) of the Act by the Government on 29-10-1995 imposing regulatory duty provides that the goods which are already subject to the payment of 65 per cent. statutory duty are exempted from the operation of the notification. It was held that if on the goods imported by any of the respondents the Customs duty was already chargeable at the rate of 65 per cent. such goods were exempted under the Notification dated 29-10-1995 from payment of regulatory duty. However, it was left to the Government to examine the individual cases in the light of the observations. Similarly in the present case, if any goods imported is subject to duty chargeable at the rate of 65 per cent. it would be exempted from the regulatory duty by virtue of clause (ii)(b) of the SRO 1050(1)/95 dated 29-10-1995. The matter is accordingly remanded for examination of this fact and action accordingly. The petition stands disposed of in terms of this order. Q.M.H./M.A.K./P-8/K Order accordingly.