ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

C.P. No.D-4697 of 2022

___________________________________________________________________ Date Order with signature of Judge

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FRESH CASE:

1. For order on CMA No.19927/2022 (Urgent).

2. For order on CMA No.19928/2022 (Exemption).

3. For order on CMA No.19929/2022 (Stay).

4. For hearing of main case.

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Dated; 12^th August 2022

Mr. Ali Almani, Advocate for Petitioner.

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1. Urgency granted.

2. Exemption granted subject to all just exceptions.

3&4. Learned counsel for the petitioner submits that pursuant to Notification No.2(9)/2013-LED-II dated 02.06.016 issued by Ministry of Industries and Production, Government of Pakistan, an Automotive Development Policy (ADP) 2016-2021 was formulated and Tariff Plan was proposed for tax period 2016-2021. According to learned counsel for the petitioner, pursuant to ADP (2016-2021) Notification, SRO 484(I)/2016 dated 29.06.2016 was issued by Ministry of Finance and Revenue (Revenue Division). In terms of sub-section (5) of Section 18 of the Customs Act, 1969, whereby, the amendments were introduced in previous SRO 693(I)/2006 dated 01.07.2006 and the Automotive Policy, as referred to hereinabove, was given effect in respect of non-localized components and parts in imports. However according to learned counsel, through impugned SRO 967(I)/2022 dated 30.06.2022, 7% additional customs duty has been levied on Non-Localized assemblies in supersession of the previous SRO i.e. SRO 845(I)/2021 dated 30.06.2021 and in violation of vested right accrued in favour of the petitioner. Learned counsel for the petitioner submits that through ADP for 2016-2021 and the Notification/SRO, as referred to hereinabove, vested right accrued to the petitioner cannot be taken away through subsequent SRO, particularly during the period for which any exemption/concession was granted in respect of additional customs duty and taxes. Learned counsel for the petitioner submits that in the instant petition, the petitioner has challenged vires of SRO 967(I)/2022 dated 30.06.2022, whereby, respondents are demanding from the petitioner additional duty pursuant to impugned SRO, which has superseded SRO 845(I)/2021 dated 30.06.2021. In support of his contention, learned counsel for the petitioner has placed reliance in the case of M/s. M.Y. Electronics Industries (Pvt.) Ltd. through Manager and others v. Government of Pakistan though Secretary Finance, Islamabad and others reported as 1998 SCMR 1404. Per learned counsel, similar SRO has also been challenged by New Auto Industry Setup after 2016 in C.P. No. D-4851/2019 (Kia Lucky Motors Pakistan Limited v. Federation of Pakistan through Secretary Ministry of Finance) and in C.P. No. D-6167/2019 [Re: Indus Motors Company Ltd. v. Federation of Pakistan & 5 others], wherein, notices have been issued to the respondents and petitioners have been granted interim relief. In support of his contention, learned counsel for the petitioner has referred copies of orders dated 24.07.2019 and 30.09.2019 passed by Divisional Benches of this Court in the aforesaid petitions, copies of which, are available at Page: 387 – 393 and 395 - 399 respectively in the instant file. Learned counsel for the petitioner has also placed on record a copy of order dated 10.08.2020 passed by this Court in C.P. No.D-3518/2020.

Since the legal grounds agitated in the instant petition appears to be similar to that in the above petitions, we would issue pre-admission notice to the respondents as well as D.A.G. to be served through first three modes, for 15.09.2022, when comments, if any, shall be filed with advance copy to the leaned counsel for the petitioner and instant petition may be taken up alongwith aforesaid petitions, including C.P. No.D-3518/2020. In the meanwhile, the interim relief granted to the petitioners in the aforesaid petitions, shall apply mutatis mutandis to the instant petition as well, whereas, respondents are further restrained from demanding additional customs duty from the petitioner pursuant to SRO 967(I)/2022 dated 30.06.2022.

J U D G E