IN THE HIGH COURT OF SINDH AT KARACHI

C.P. Nos.D-2213, 2214 & 2215 of 2009

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Date Order with signature of Judge

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1. For Hg of Misc. No.11837/09

2. For orders on office objections

3. For Katcha Peshi

(Comments filed)

20/11/2009:

Ms. Ismat Mehdi, Advocate for the Petitioners in C.P. Nos.D-2213, 2214 and 2215 of 2009.

Mr. Mian Khan Malik, DAG for Respondent Nos.1 & 2.

Mr. Zain Jatoi, Advocate for Respondent No.3.

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It appears that the subject consignment of residuary of petroleum oil is sought to be released in line with the order dated 3/7/2009 passed by this Court in C.P. Nos.D-1077 to 1083, 1092, 1200 and 842 of 2009 and other identical petitions on similar terms and conditions and one of the conditions was that the petitioners will deposit 50% of the disputed tax with the Nazir of this Court and deposit the 50% balance in the government treasury and besides other conditions as to the sale of subject consignment to the specified person and furnish the evidence to the respondent authority by submitting sale invoices.

Mr. Zain Jatoi, learned counsel for respondent No.3, has drawn our attention to the order dated 7/10/2009 passed by a Division Bench of this Court in C.P. No.D-2057/2009 whereby the entire amount was directed to be deposited in the government treasury along with the undertaking to the custom authority that if any redemption fine, penalty, fine or additional tax is levied on them and the same are upheld by the Tribunal they will deposit this amount with the custom authorities within 15 days of the order of the Tribunal, unless they get appropriate order from this Court.

Mr. Zain Jatoi, learned counsel, further submits that it is not understandable that such huge quantity of residuary oil is being used by bhattas’ owners. According to him, such facility is being misused for some other covert purposes. Such aspect can be examined by the authorities concerned at the time of adjudication and this is the purpose that fine could be inflicted on the delinquent importers, if it is so established. Since other petitioners were extended benefit as per order dated 3/7/2009, we are inclined to dispose of these petitions on similar terms, which are as follows:

a) The respondents are directed to inform the petitioners within three days of this order, about the total amount of customs duties, sales tax and central excise which will be levied on the products if they are taken to be the products mentioned in the chemical reports.

b) Presently this order will only apply to consignment whose flash point is below two hundred degrees Fahrenheit.

c) As soon as this information is received by the petitioner they will deposit 50% of the disputed tax with the Nazir of this Court and deposit the 50% balance in the government treasury. They will also deposit an undertaking with the Nazir of this Court that if any redemption fine, penalty, fine or additional tax is levied on them and the same are upheld by the Tribunal they will deposit this amount with the custom authorities within 15 days of the order of the Tribunal, unless they get appropriate order from this Court.

d) The Nazir is directed to release the amount if the order of the Adjudicating Authority is upheld by the Tribunal within 15 days of such order and if an appropriate order is not produced by the petitioner before him.

e) The exercise of the release of goods should preferably be completed within fifteen days of this order.

Learned counsel for petitioners on behalf of the petitioners undertakes that petitioners in all these petitions shall comply with the orders of the Court and adjudication with the condition that if any redemption fine, penalty, fine or additional tax is imposed on the petitioners, they will duly comply with such orders in adjudication. Since the petitioners are in tax net, apprehension of learned counsel for the respondents that in case fine or penalty is imposed, same will not be recoverable as the petitioners will go in hiding, in the given circumstances is not well-founded.

These petitions in above terms stand disposed of along with listed applications.

Karachi;

Dated: 20/11/2009 J U D G E

J U D G E