Law: Customs Act, (IV of 1969)

Section: 25,80,81,83,83(2),194-A

Law: Constitution of Pakistan, 1973

Section: 199,199(1)(a)(i),199(1)(a)(i)(ii),199(1) (b)(i),199(1)(b)(i)(ii),199(1)(CC)

CUSTOMS ACT, 1969 (IV OF 1969)----Sections: 25, 80, 81, 83, 83(2) & 194-A - Constitution of Pakistan, 1973, Article 199, 199(1)(a)(i)(ii), 199(1)(b)(i)(ii) & 199(1)(CC) - Value of imported and exported goods - Checking of goods declaration .by the Customs - Provisional determination of liability - Clearance for home consumption - Writ Petition - Writ of mandamus, Prohibition and certiorari - International Airlines Corporation Limited - Added three aircraft to its fleet on dry lease - Demand of customs duties, sales tax and other taxes - Show Cause Notice - Allowing payment of tax in installments by the Economic Coordination Committee - Passing of order-in-original for the payments as per the demand - Petitioner challenged the order before High Court and subsequently, it also filed an appeal before Tribunal - Scope � FACTSThe petitioner, in the year 2013, added three aircraft to its feet on dry lease. At the relevant time, when this was being done, it received demand from the competent authority for payment of customs duties, sales tax and other taxes. The petitioner referred the matter to the then Minister for Finance, which eventually, was considered by the Economic Coordination Committee (ECC) of the Cabinet and vide its decision dated 17.12.2013. the petitioner was allowed to pay the referred taxes to the tune of Rs.1,258,044,330 in installments. Apparently, as a result of post clearance audit, a contravention case was made out against the petitioner bearing No.28/2019-20. which resultantly culminated into show cause notice from respondent No.6. The allegations levelled in the show-cause notice were that surcharge as per section 83 of the Customs Act, 1969 was not levied at the time of payment of duty and taxes.ARGUMENTSLearned counsel submitted that arrangement, on the basis of which aircraft were obtained by the petitioner from overseas lessor, was a dry lease and the referred property did not become the asset of petitioner and as such there was no import into the country. It was argued that under the facts and circumstances, the Customs Duty, Sales Tax and Income Tax were neither chargeable nor could be collected under the provisions of…