Law: Customs Act 1969

Section: 19

    Customs Act (IV of 1969)-- ---S. 19---Import of machinery---Exemption from payment of import fee---Words "fee" and "tax'---Distinction---Fee is a charge which is levied for rendering service, while tax can be charged irrespective of any service that may be rendered to the public or to the person from whom it is charged---Licence fee charged from importer would fall within category of "fee". Fee is a charge which is levied for rendering service, whereas tax can be charged irrespective of any service that may be rendered to the public or to the persons from whom it is charged. The fee cannot be restricted only for rendering any material service but if any special benefit is conferred or any privilege is bestowed and for obtaining that privilege or benefit any amount is charged it will fall within the category of fee. It is, therefore, to be considered whether the licence fee charged is a fee or a tax. The Act regulates import and export in the country and thus regulates trade and commerce. The import and export is always regulated by an import and export policy which is issued every year taking into consideration the economy of the country and its requirements. General import and export unless so provided by law are prohibited, therefore, when any licence to import   or export any goods is granted it is a sort of benefit or privilege which is conferred upon such a person. The levy of import fee will therefore fall within the category of fee. Black's Law Dictionary; Commissioner, Madras v. Siri Lakshmira Teerath Sive AIR 1954 SC 284; Muhammad Ismail & Co. v. Chief Inspector PLD 1966 SC 388 and Mahboob Yar Khan and others v: Municipal Committee and 2 others PLD 1975 Lah. 478 ref. Customs Act (Iv of 1969)--- ---S.  19---Constitution  of  Pakistan  (1973), Art.199---Exemption from customs duty---Specified area was declared to be an "Industrial Estate" and exempted from import duty---Land on which importer's factory was installed was made part of that "Industrial Estate" much after the import licence was issued to importer-- Importer's claim for exemption of such…