Law:

Section:

SYED ABDUR REHMAN, J.---This is a petition under Article 199 of the Constitution of Islamic Republic of Pakistan.

2. The petitioners had entered into a contract for purchase of 310 metric tons of welding electrodes with M/s.China National on 5-12-1987. On being applied for the same an Import Licence was issued in their favour of the free list for import of these goods on 7-3-1988. A confirmed irrevocable letter of credit was established in favour of the foreign seller by the petitioners on 10-3-1988. The above quantity of welding electrodes was shipped and the cargo reached Karachi. The petitioners placed their goods in bonded warehouse on 6-6-1988. On 15-6-1988 the petitioners filed eight bills of entry for clearance of the goods from the bond. After the petitioners had entered into contracts for the import of these goods and had established the aforesaid letter of credit, but before the arrival of the goods respondent No.2 by a notification imposed 40 % regulatory duty under subsection (2) of section 18 of the Customs Act, 1969 on welding electrodes on 13-3-1988. Hence the Assistant Collector of Customs (Appraisement) insisted that the goods will be cleared only after the petitioners pay this duty. It is asserted by the petitioners that the notification imposing the said duty would not apply to the above goods of the petitioners. Hence the petition with the following prayers:---