| Citation(s) |
|---|
| 2025 SLG 5256 2025 SLD 5256 = 2025 SHC 2418 |
C.P. No. D-4353 of 2025
Present: Mr. Justice Adnan Iqbal Chaudhry Mr. Justice Muhammad Jaffer Raza
Petitioner : M/s. Hoora Pharma (Pvt) Ltd., through Dr. Muhammad Farogh Naseem, Advocate alongwith M/s. Shahrukh Farogh Naseem and Barrister Sagar Ladhani, Advocates.
Respondents 1-3 : Pakistan through Ministry of Finance, Secretary Revenue and Chairman Federal Board of Revenue through Mr. Muhammad Akbar Khan, Assistant Attorney General alongwith Mr. Haris Ansari, Chief FBR.
Respondents 4-6 : The Collector of Customs (SAPT) and two others through Mr. Agha Shahid Majeed Khan, Advocate alongwith M/s. Muhammad Zakir, Amir Ali Shaikh, Advocates and Mr. Nayyar Shafiq, Collector Customs, Mr. Tariq Aziz and Arsalan, Assistant Collectors of Customs Appraisement (SAPT).
Respondent 7 : M/s. South Asia Pakistan Terminal through Mr. Rizwan Saeed, Advocate along with Ms. Saadia Sheeraz, Collector of Customs, Airport.
Respondent 8 : Nemo. Date of hearing : 08-09-2025 Date of decision : 22-09-2025
[M/s. Hoora Pharma (Pvt) Ltd.
VERSUS
Pakistan & others]
Law: Pakistan Customs Tariff Rules,
Section: 9938, 3006.1090
Law: Drugs Act, 1976
Section: 81, 3(g)(ii)
Law: Drug Regulatory Authority Act, 2012
Section: 32
Law: Customs Act, 1969
Section: 80
Reduced rate of sales tax under Entry No.81 of 8th Schedule applicable to drugs under Drugs Act, 1976, not to medical devices under DRAP Act, 2012
Case Summary
The petitioner, an importer and distributor of sutures, challenged the classification of sutures by the Customs and FBR. The dispute arose because sutures were initially cleared as “disposables” under PCT 9938 (sales tax exempt) but later categorized as a “medical device” under PCT 3006.1090 and the Medical Devices Rules, 2017. The petitioner sought exemption under Entry No. 81 of the Eighth Schedule to the Sales Tax Act, claiming sutures qualify as drugs under the Drugs Act, 1976.
The Court observed that the reduced rate of sales tax under Entry No. 81 applies only to items registered as drugs under the Drugs Act. Since the certificate presented by the petitioner was issued by the DRAP under the Medical Devices Rules and not a registration as a drug, the petitioner was not entitled to the reduced rate. Prior judgments (e.g., Popular International) were distinguished because, in those cases, the imported sutures were registered under the Drugs Act. Consequently, the Court dismissed the petition, upholding the Customs’ assessment order.
Sections / Legal Provisions Involved
PCT 9938 – Disposables not manufactured locally (customs classification)