Law: Customs Act, 1969

Section: 19,32,32(3A)

Law: Income Tax Ordinance, 2001

Section: 148,182

Law: Sales Tax Act, 1990

Section: 3(1)(b),33(5)

General power to exempt from customs duties - False Statement, error, etc.- Import of hybrid vehicles - Clearance on 50% exemption of duty and taxes in terms of SRO. 499(I)/2013, dated 12.06.2013 - Evasion of duty taxes - Show Cause Notices to the importer and the clearing agent - Upholding of Show Cause Notice by the Deputy Collector Customs (Adjudication) and passing of order-in-original for recovery of taxes and duties along with imposition of penalty - Appeal dismissed by the Collector of Customs (Appeal) - Appeal allowed by the Appellate Tribunal - Reference application dismissed by the High Court - Challenge to - Leave to appeal - FACTS The respondent-importers, imported Hybrid Electric Vehicles which were cleared by the Customs on 50% exemption of duty and taxes in terms of SRO. 499(I)/2013, dated 12.06.2013 - Later on Show Cause Notices were issued to the importers and also to the clearing agents for the payment of deficit duty and tax - Appeal dismissed by the Collector of Customs (Appeals) - Appellate Tribunal, however, accepted the same but the reference applications filed by the petitioners were dismissed by the High Court - The petitioner, challenged the dismissal of reference application in the Supreme Court of Pakistan - ARGUMENTS The learned counsel for the petitioners argued that the learned High Court has wrongly held that Notification SRO. 499(I)/2013, 12.06.2013 is applicable to both new and used imported Hybrid Electric Vehicles which is contrary to the Import Policy Order, 2016 in which import of old and used HEVs are not allowed - DECISION (a) Customs Act, 1969 (IV of 1969) Sections: 19 32(3A) - Notification SRO. 499(I)/2013, dated 12.06.2013 - Import of Hybrid Electric vehicles - Exemption - Entitlement of - In the present state of affairs, exemption of customs duty, sales tax and withholding tax on import of Hybrid Electric Vehicles (HEVs) falling under PCT Code 87.03, specified in column (2) of the Table to the extent as specified in column (3) in terms of S.R.O.499(I)/2013, dated 12.6.2013 could neither be denied nor circumvented on the basis of subsequent circular dated 5.10.2018, issued by the Assistant Collector of Customs. (b)…

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