4658/2018 Const. P. Dewan Motors (Pvt) Ltd and Ors (Petitioner) V/S Fed. of Pakistan and Others (Respondent)

4658/2018 Const. P. Dewan Motors (Pvt) Ltd and Ors (Petitioner) V/S Fed. of Pakistan and Others (Respondent) Sindh High Court

Bench: Hon'ble Chief Justice Mr. Justice Aqeel Ahmed Abbasi(Author), Hon'ble Mr. Justice Abdul Maalik Gaddi Order Date: 06-AUG-20

A Divisional Bench of this Court comprising of Mr. Justice Aqeel Ahmed Abbasi and Mr. Justice Abdul Maalik Gaddi, has pronounced the judgment on 06.08.2020 in the case of Dewan Motors (Pvt) Ltd. and others v. Federation of Pakistan & others (along with connected petitions), wherein, the Hon'ble bench of Sindh High Court has been pleased to dispose of all the petitions in the following terms:- " (i) The impugned sub-section (2) of Section 221-A of the Customs Act, 1969, as added vide Finance Act, 2018, is ultra vires to the Constitution of Islamic Republic of Pakistan, 1973, as through impugned amendment the legislature has attempted to validate constitutional defect while making amendment in sub-section (3) of Section 18 of the Customs Act, 1969, and issuance of SRO 1035(I)/2017 dated 16.10.2017, through Finance Act, 2017, however, without making the required constitutional amendment. (ii) The Regulatory Duty charged and collected pursuant to amendment in sub-section (3) of Section 18 of the Customs Act, 1969, and issuance of SRO 1035(I)/2017, through Finance Act, 2017, has already been declared by the Divisional Bench of this Court in the case of Premier Systems (Pvt) Ltd. v. Federation of Pakistan and others (2018 PTD 861), as illegal and unconstitutional in the light of judgment of the Hon'ble Supreme Court of Pakistan in the case of Mustafa Impex, Karachi & others vs. The Government of Pakistan & others, (PLD 2016 SC 808), therefore, in the absence of any constitutional amendment, cannot be validated through subsequent amendment in law, while giving it retrospective effect in respect of past and closed transaction, therefore, no Regulatory Duty can be charged, collected or recovered for the period starting from the date of commencement of Finance Act, 2017 till the date of commencement of Finance Act, 2018. .