Law:

Section:

Custom Duty-- ----Ad-voleram--Business of manufacture and assembly of motorcycles--Imports parts components of motorcycle--Question of--Whether parts/components imported for manufacture and assembly of motorcycle are amenable to custom duty 25% ad-voleram--Minimum indigenization of manufacture of vehicle--Statutory duty--Commercial import and not for industrial import--Validity--Parts/components being imported by respondent are chargeable to duty under PCT and that concession under SRO 435(1)/2001 shall only be applicable to respondent in case he fully adhere to terms and conditions thereof--Case was remanded. THIS JUDGMENT DELIVERED BY: Maqbool Baqar, J.- Through the above appeal the appellants have assailed the judgment dated 18.1.2006 of a learned Division Bench of the High Court of Sindh, Karachi whereby Constitution Petition No. D-516 of 2004, filed by the respondent, was allowed. 2. The respondent is engaged in the business of manufacture and assembly of motorcycles in Pakistan. For the said purpose, he imports parts/components of motorcycles. The controversy in the matter is, as to whether the parts/components imported by the respondent for manufacture and assembly of his motorcycles are amenable to custom duty @ 25% ad-voleramunder PCT heading 87.14, as claimed by the respondent, or @ 90% as prescribed under PCT heading 87.11, as contended by the appellants. 3. The respondent has contended that since he imported parts/components of motorcycles that fall within PCT heading 87.14 which provides for duty @ 25% ad-voleram and do not fall within the description of PCT heading 87.11 which provides for duty @ 90% ad-voleram, his consignments are chargeable to duty @ 25% ad-voleram only. 4. It is indeed true that parts/accessories of vehicles, including that of motorcycles are chargeable to duty as prescribed under PCT heading 67.14, but at the same tune PCT heading 87.11, which provides for duty on motorcycles @ 90% ad-voleram, also provides for 30% exemption on such duty in respect of components for manufacturing of motorcycles in terms of SRO No. 436(I)/2001 dated 18.6.2001, as follows: "Assessable rates on account of Exemption or Regulator Duty etc.…

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