Law: Karachi Municipal Corporation Terminal Tax (Validation) Ordinance (VIII of 1967)

Section: 2

.JUDGMENT

GIHULAM MUHAMMAD KOUREJO, J.--The appellant Messrs Jamia Indus tries Limited imported base stock for blending various types of lubricants in the years 1961-66, by sea. Most of such imports were not meant for use and consumption within the limits of Karachi Municipal Corporation and were sent to upcountry. In spite" of that the Karachi Municipal Corporation recovered terminal tax from the appellant. on these goods. The appellant paid the amount of Rs. 1,22,054.75 towards such terminal tax under coercion, and continued to maintain the stand that the Karachi Municipal Corporation was not empowered to charge terminal tax on the goods imported in the Karachi harbour,. but meant for .upcountry. However, a declaratory suit was filed in the Court of Civil Judge, Karachi who passed a decree on 31-8-1964 to the effect that the terminal tax on goods imported by sea could be levied by the Karachi Municipal Corporation in accordance with the old schedule (b). On 15-5-1969, the. appellant filed a suit for recovery of Rs. 1,22,054.75 paid towards terminal tax against the respondent. The suit was resisted by the respondent K. M. C. and was dismissed by the learned Single Judge, resulting in the present appeal.