The Federal Board of Revenue has been advised by the Ministry of Law and Justice and the office of the Attorney General for Pakistan that it is legally competent to invoke the constitutional jurisdiction of the superior courts against orders issued by the President of Pakistan.
According to the legal opinion sought by the FBR, the President, while deciding a representation against an order of the Federal Tax Ombudsman, acts in a quasi-judicial capacity, allowing such decisions to be challenged before the High Court on valid and reasonable grounds.
The issue arose in a case involving M/S MH Traders, which had imported goods declared as PU leather under a concessionary regime meant for football manufacturing under SRO 492(1)/2009.
However, customs laboratory tests later found the goods to be printed polyester fabric instead of PU leather, while the importer was also found not to be registered as a manufacturer, which was a key requirement for availing the concession.
Although the Federal Tax Ombudsman had initially dismissed the complaint on jurisdictional grounds, the importer later approached the President, whose office overturned the FTO’s decision and granted relief.
The customs department subsequently challenged the presidential order before the Sindh High Court, which granted a stay order. The matter currently remains sub judice before both the Sindh High Court and the Customs Appellate Tribunal, with the FBR requesting that implementation of the presidential order remain suspended until a final court decision is issued.
