Law:

Section:

(a) Customs Act (IV of 1969)--- ----Ss. 19 & 32(3)---S. R. O. 959(I)/89 dated 23-9-1989---S.R.O.515(I)/89 dated 3-6-1989---S.R.O. 393(I)/74 dated 21-3-1974---Constitution of Pakistan (1973), Art. 185(3)---Manufacturing of fertilizers---Leave to appeal was granted to consider contentions raised which required interpretation of S.R.O. 959(I)/89 dated 23-9-1989 and were of general importance involving duties and taxes and to determine the points viz. whether "catalyst" was integral or component part of machinery/plant and whether "catalyst" was a chemical and consumable. (b) Customs Act (IV of 1969)--- ----Ss. 19 & 32(3)---S.R.O. 959(I)/89 dated 23-9-1989---S.R.O.515(I)/89 dated 3-6-1989---Manufacture of fertilizers---" Catalyst"---Definition--­Exemption of "catalyst" from customs duty and sales tax---"Catalyst" is an essential and integral part of the plant including all chemical reactors without which the whole machinery remains incomplete and which is utilized in fertilizer production---Catalyst cannot be considered as raw material---Catalyst being an integral part of the fertilizering plant and machinery, shall be exempted from the customs duty and sales tax--­S.R.O.959(I)/89 dated 23-9-1989 has made the position clear which indicates that "plant and machinery" not manufactured locally and imported for the expansion of the existing unit manufacturing fertilizer shall be exempted from whole of the customs duty and sales tax subject to conditions specified under S.R.O.515(I)/89 dated 3-6-1989---Merely because catalyst does not find mentioned in Chapters 84 and 85 of Pakistan Customs Tariff and mentioned separately would have no substantial bearing on merits of the case because the controversy has been set at rest by the S.R.Os. which are capable enough to meet all sorts of such eventualities---Catalysts, Expoxy Grout and Speciality Paints being integral parts of the plant and machinery, shall be exempted from customs duty and sales 'tax pursuant to the provisions contained in S.R.O.515(I)/89 dated 3-6-1989 and S.R.O.959(I)/89 dated 23-9-1989 being the relevant S.R.Os.--­Principles. Carbide and Carbon Chemicals Corp. v. Coe, 102 F.2d 236, 240, 69 App.…

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