A Customs Appellate Tribunal has upheld the recovery of a 10 percent regulatory duty to the tune of billions of rupees from six oil firms on the import of petrol in 2022.
The two-member tribunal passed the order allowing departmental appeals against an order of the Collector Customs (Appeals) in favour of the oil importers. The importers include Hascol Petroleum Ltd, Taj Gasoline Ltd, My Petroleum (Pvt) Ltd, Gas & Oil Pakistan Ltd, Euro Oil (Pvt) Ltd and Puma Energy Pakistan Ltd.
According to details the companies claimed benefit of an exemption from the regulatory duty under SRO 806(1)/2022.
However, the claimed benefit was not granted to the companies because the federal government had imposed a 10 percent duty on the import of petrol through the same SRO with the stipulation that the regulatory duty shall not be levied on cargoes for which letters of credit (LCs) had already been opened or were at high seas.
Petrol imports, where 10 percent customs duty was paid, shall be exempted from the levy of the regulatory duty. The scheme was time-specific and was applicable till June 30, 2022, and ceased to exist with effect from July 1 when a newly issued SRO 966(1)/2022 came into the field.
However, upon being denied the exemption, the oil importers filed petitions before the Sindh High Court and sought an extension of the benefit to imported goods, including petrol.
The High Court allowed the release of the imported goods provisionally by securing the disputed amount through pay orders or bank guarantees. Later, the SHC dismissed the petitions in its final decision.
Source: Dawn
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