Law: Sales Tax Act, 1990

Section: 3,6, 6(1), 6(1A)

Law: Customs Act, 1969

Section: 30,31A

Sales Tax Act (VII of 1990)---

----Ss.3 & 6---Customs Act (IV of 1969), Ss. 30 & 31-A---Payment of sales tax--Rate at the time of Letter of Credit was 10% which was subsequently enhanced at the time of Goods Declaration---Legality---Enhanced rate, applicability of---Scope--Case of the petitioner was that when the letter of credit was established in respect of the goods in question, 10% sales tax was leviable, whereas, when the goods arrived and a Goods Declaration was filed, the said rate was enhanced from 10% to 17% therefore petitioner contended that it was liable to pay 10% sales tax instead of 17% as claimed by the authorities---Validity---Provisions of S. 6 (1) & (1A) of the Sales Tax Act, 1990, made it clear that notwithstanding the opening of Letter of Credit, the rate of sales tax would be the one, which was applicable at the time of filing of a Goods Declaration as provided under S. 30 of the Customs Act, 1969 read with Ss. 3 & 6 of the Sales Tax Act, 1990---Section 6(1) was incorporated in the year 2002 to undo the effect of judgment of the Supreme Court of Pakistan reported as 1986 SCMR 1917, whereby, it was held by the Supreme Court that if a binding contract was concluded between the importer and the exporter or steps were taken by creating a vested right to the then existing notification granting exemption, the same could not be taken away and destroyed in modification of the earlier one---However, the effect of this judgment was undone by insertion of S. 31A of the Customs Act, 1969, and a subsequent challenge to its vires had remained unsuccessful in the case reported as 1993 SCMR 1905---Therefore, no case for indulgence of the High Court was made out---Amount secured, if any, pursuant to the ad-interim order passed by the High Court was directed to be paid / credited to the account of the concerned Collectorate---Petition was dismissed, in circumstances.