A divisional bench of the Peshawar High Court (PHC) has observed that Finance Act IV of 1999 does not apply to the Provincially Administrated Tribal Area (Pata) and the Central Board of Revenue (CBR) could not collect enhanced duties from the petitioner, an industrialist of the area, under amended Section 25 of the Act.
The court said that the CBR could collect duties on import of palm oil at Rs 4,800 per tonne from the petitioner under Customs Act 1969.
In its two-page judgement, the learned court observed that despite repeated directions respondents No 2 and 3 (tax authorities) have failed to file parawise comments inter-alia contends that Customs Act, 1969 was extended to Pata in terms of Article 247 (3) of the Constitution through Regulation 111 of 1975 on 22.07.1975 and the customs duty and regulatory duty on the import of raw material of palm oil were used to be recovered from the petitioner company at Rs 4,800 per tonne as is evident from the bills of entry appended with the writ petition.
Subsequently, the court added that Section 25 of the Customs Act, 1969 was amended through Finance Act IV of 1999 whereby import duty and regulatory duty were merged/transposed and thereafter the respondents are collecting the duties from the petitioner on import of raw material of palm oil at Rs 4,800 per tonne, which is illegal as amending Act of 1999 was no applied in Pata under Article 24/(3) of the Constitution.
The learned DAG conceded that Act IV of 1999 has not been applied to Pata but under amended Section 25, the respondents can competently enhance the duty rate. The court said that points agitated at the bar require consideration.
The judgement said, "We admit this writ petition to full hearing with the direction to fix it for full hearing within three months.
Respondents may file written statement if they so desire. The petitioner shall pay duties under the unamended Customs Act as it was on the date of extension to PTA, ie, 22.07.1975, which is stated to be Rs 4,800 per tonne as is evident from various bills of entry appended with the writ petition and the petitioner shall also furnish indemnity bond for the amount fixed under the amending Act IV of 1999 till disposal of the writ petition.
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