| Citation(s) |
|---|
| 2016 SLG 2407 2016 SLD 2407 2016 SCMR 1448 |
Supreme Court of Pakistan
Civil Appeal No. 1291 of 2005, decided on 27th April, 2016. Dates of hearing: 13th and 27th April, 2016. (On appeal against the judgment Dated 1-1-2003 passed by the High Court of Sindh, Karachi in Special Customs Appeal No. 142 of 2002)
MIAN SAQIB NISAR, JUSTICE, SH. AZMAT SAEED AND FAISAL ARAB, JUSTICE
Raja Muhammad Iqbal, Advocate Supreme Court for Appellant. Salman Akram Raja, Advocate Supreme Court for
Respondent.
Civil Appeal No. 1291 of 2005, decided on 27th April, 2016. Dates of hearing: 13th and 27th April, 2016. (On appeal against the judgment Dated 1-1-2003 passed by the High Court of Sindh, Karachi in Special Customs Appeal No. 142 of 2002)
MIAN SAQIB NISAR, JUSTICE, SH. AZMAT SAEED AND FAISAL ARAB, JUSTICE
Raja Muhammad Iqbal, Advocate Supreme Court for Appellant. Salman Akram Raja, Advocate Supreme Court for
Respondent.
COLLECTOR OF CUSTOMS
VS
MESSRS D.G. KHAN CEMENT CO. LTD.
Law:
Section:
(a) Customs Act (IV of 1969)--- ----S. 19---S.R.O. 484(I)/92 dated 14-5-1992---Import of 'plant and machinery'---Exemption from customs duty and sales tax---"Off-Highway dump trucks" imported by cement manufacturing company---Whether such trucks fell within the definition of 'plant'---Use of Off-Highway dump trucks at the quarries made them part and parcel of the industrial process of the cement company in question and their utility formed an integral function in the manufacturing of the cement---Direct nexus existed between the use of Off-Highway dump truck at the quarry of the cement manufacturing factory with its industrial process---Such nexus brought the Off-Highway dump truck within the definition of 'plant'---Irrespective of the fact that Off-Highway dump trucks were mobile vehicles, they were utilized to further the industrial process without which the industrial process of a cement factory would get interrupted and hindered at the very initial stage---"Off-Highway dump trucks" fell within the definition of the present company's cement "plant". Under S.R.O. 484(I)/92 dated 14-5-1992, plant and machinery, not manufactured locally, which were imported for setting up a new unit or for expansion or balancing, modernization and replacement of an already existing unit in certain areas was granted exemption from the whole of the customs duty and sales tax subject to fulfilling certain conditions. Cement company, in the present case, imported three Off-Highway dump trucks and claimed exemption from customs duty and sales tax under S.R.O. 484(I)/92 dated 14.05.1992 by contending that the Off-Highway dump trucks were imported for use in the industrial process of a cement factory, therefore, the same should be regarded as part of the plant and machinery of the cement factory. Entire set of machines used in conjunction with other apparatus and electrical and mechanical equipment, required for undertaking and completing the cement industrial process, starting right from quarrying till the finished product that was produced was to be regarded as part of the plant of the cement company. In cement industry Off-Highway trucks were used at the quarries where the…
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