Law: Customs Act, 1969

Section: 18

Customs Act (IV of 1969)---

----S.18---Goods sent abroad for repair---Re-importation of such goods--Exemption from customs duties---Entitlement---Customs Appellate Tribunal ( Tribunal ) concurred that, in view of FBR s letter dated 13.08.2012, the Applicant was not entitled to claim any exemption from duties and surcharge on the reimportation of goods, which were sent abroad for repairs---Validity---Findings of the Tribunal revealed that the Tribunal had merely relied upon FBR's letter dated 13.08.2012 and had not made any effort to give its own reasoning---Record further showed that earlier on 09.08.2012 another letter was issued by the FBR, whereby exemption was extended on the re-importation of goods after repair---From perusal of the said two letters, which were contrary to each other, it reflected that the subsequent letter had on its own inserted words before commencing of the Project , which appeared to be contrary to the provisions of Clause 13.2 of Article (XIII) of the Implementation Agreement between the Applicant and Government of Pakistan ( Agreement )---Even otherwise, any goods which required repair would naturally be after the commencement of the Project and not prior to that---Clause 13.2 of Article (XIII) of the Agreement stated that the Applicant shall be entitled to export without restriction all items of Plant and Machinery imported by it under Section 13.1 for the purposes of repair or re-furbishment outside Pakistan and to re-import the same without restriction and without payment of Customs Duties and other Surcharges and this Clause did not provide any time limit as stated by the FBR in its letter dated 13.08.2012; till such time the agreement subsisted, the exemption of such goods sent abroad for repair would be admissible---Thus, the proposed question was answered in the affirmative i.e. in favour of the Applicant and against the Respondent /Collectorate---High Court set-aside the impugned judgments of the forums below---Special Customs Reference Application was allowed.