Law: Sales Tax Act, 1990

Section: 13

Law: Customs Act, 1969

Section: 8,18(2),19,25,25B,31A

Law: Constitution of Pakistan, 1973

Section: 199

Customs Act (IV of 1969)---Ss. 18, 19, 25, 25-B & 31-A --- Sales Tax Act, 1990, S. 13 --- Constitution of Pakistan (1973), Art. 199 --- Notification S.R.O. No. 1050(1)/95 dated 29-10-1995 --- Imposition of regulatory duty upon goods imported into Pakistan --- Importers while opposing imposition of such regulatory duty/sales tax claimed that same being confiscatory in nature, no reasons at all had been advanced for their imposition and that circumstances prevailing in country in fiscal circle were not mentioned warranting their imposition --- Federal Government's power to impose regulatory duty; exemption in payment of Customs duty,-. and effect of S.31-A customs duty outlined and elucidated. Section 18(2) of the Customs Act, 1969 makes it very clear that the Federal Government was fully empowered subject to such conditions, limitations or restrictions as it might deem fit by issuing notification to impose regulatory duty on all or any of the specified goods in First Schedule at a rate not exceeding 100% of the value of such goods as determined under section 25 or section 25-B of the Customs Act. This power was exercised so as to control the fluctuating prices trend in the international market, apart from generating extra funds/revenue for the State. It would regulate the import and export of the items so as to maintain proper balance in the ever fluctuating international market. Regulatory duty was imposed to deal with special situation and was for a limited period as by virtue of subsection (4) of section 18 of the Act, it would stand automatically rescinded on the expiry of the financial year in which it was issued if not rescinded earlier. The discretion is not unrestricted and there were certain in-built restrictions provided by subsection (2) of section 18 itself which control this discretion. It has to be exercised within the mandate provided by law. The nature of regulatory duty has been considered to be essentially a "Customs duty" and it was so covered by the expression "duties of the Customs". The view that regulatory duty which was imposed under section 18, subsection (2) of the Customs Act would not come within the purview of customs duty as…

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