Law: Customs Act, 1969

Section: 31A

Law: Sales Tax Act, (III of 1951)

Section: 3(5)

Sales-tax Act, 1951 -- Section 7 -- Exemption -- Petitioner an importer obtained 7 import licences -- Irrevocable Confirmed Letters of Credit were opened in favour of the suppliers -- Consignments arrived at Karachi during May, June and July 1988 -- Bills of Entry were filed -- Exemption granted vide Notification No. S.R.O. 530(I)/86, dated 29-5-1986 withdrawn by the Government through another notification dated 26-6-1988 -- Whether subsequent notification affect the vested rights acquired by importer -- Held no -- Withdrawal of exemption -- Whether illegal -- Held yes -- Whether Department could be pressed into service the Section 31-A of the Customs Act for protecting the levy of sales-tax -- Held no -- JUDGMENT The Judgment of the Court was delivered by Nasir Aslam Zahid, J.-- During 1988, the petitioner placed orders for import of certain plastic materials and obtained seven import licences for importing such materials into Pakistan. According to the petitioner, irrevocable Confirmed Letters of Credit were opened in favour of the suppliers through Habib Bank Limited and the goods were shipped by the suppliers on various dates. The goods arrived in Karachi during May, June and July, 1988, in respect whereof Bills of Entry were filed. According to the petitioner, the said goods were exempted from levy of sales tax in view of exemption Notification No. S.R.O. 530(I)/86, dated 29-5-1986, but the Customs Authorities were illegally demanding sales tax at 12/1/2 percent ad-valorem on the said consignment and refusing to release the same without payment of sales tax. The claim made by the Customs Authorities for sales tax was based on Notification dated 26-6-1988 bearing No. S.R.O. 500(I)/88 which superseded the earlier Notification dated 29-5-1986. In the fresh Notification dated 26-6-1988, the goods imported by the petitioner no longer remained exempted. The demand of sales tax by the Customs Authorities on the said consignments has been challenged in the present Constitution Petition. 2. We have heard Mr. Muhammad Nasim, learned counsel for the petitioner and Mr. Ikram Ahmad Ansari, Deputy Attorney-General assisted by Mr. S.M. Sayeddain Zaidi Advocate. 3. Mr.…

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