COLLECTOR OF CUSTOMS, MODEL CUSTOMS COLLECTORATE, PESHAWAR vs WASEEF ULLAH S — 2023 SCMR 503 SUPREME-COURT

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COLLECTOR OF CUSTOMS, MODEL CUSTOMS COLLECTORATE, PESHAWAR VS WASEEF ULLAH S. 19--- Sales Tax Act (VII of 1990), S. 13(2)(a)--- Income Tax Ordinance (XLIX of 2001), Ss. 48 & 153---Hybrid Electric Vehicles (HEVs) falling under PCT Code 87.03, import of---Exemption from customs duty, sales tax and with-holding tax---Federal Government, vide S.R.O. 499(I)/2013 dated 12-6-2013 ('the S.R.O.'), exempted customs duty, sales tax and with-holding tax on import of Hybrid Electric Vehicles (HEVs) falling under PCT Code 87.03---During the existence of the S.R.O., the Assistant Collector of Customs issued a Circular ('the Circular') wherein a condition was sought to be imposed, beyond the purview of the original S.R.O., that the benefit of exemption of duties and taxes on the import of HEVs under the S.R.O. was only available to Fully Hybrid Vehicles which had larger batteries and a motor to drive the electric vehicle---Legality---Through the Circular, the Assistant Collector of Customs innovated a new criteria that the benefit in the original S.R.O. was only extended to the Fully Hybrid Vehicles which had larger batteries and a motor to drive the vehicles, but nothing was mentioned in this regard in the S.R.O. itself---Nothing was placed on record as to how the Assistant Collector of Customs, had any lawful authority to issue such Circular in order to make an amendment in the original S.R.O. whereby he added certain conditions under the guise of a so-called clarification which changed the complexion and substratum of the S.R.O. without any lawful authority---Both the Appellate Tribunal and High Court had rightly discarded the Circular which was unjustifiably and irrationally approved in the Appellate Order while describing the Circular as clarificatory in nature---In fact, the Federal government exempted duties on the import of HEVs falling under PCT Code 87.03 without any distinction of new or used hybrid vehicles, or large or small batteries, or with any specific qualification sine qua non for exemption---Anything which was being inferred extraneously or beyond the scope or tenor of the S.R.O. was not permissible under any rule of interpretation---Supreme Court observed that HEVs technology besides being fuel efficient, was also an alternative solution to cautiously concentrate on the issue of global warming; that the proper and futuristic use of this technology will not only improve and recuperate the atmosphere and ecosystem, but also alleviate destructive facets of climate change; that on the face of it, the exemption on the import of HEVs was logically issued for protection against climate change, and to minimize its adverse impact in the future, and it was also the need of the time and a pressing priority to promote and encourage HEVs more and more, rather than applying irrational interpretations resulting in unwarranted restrictions on the exemption already in field---Petitions for leave to appeal were dismissed and leave was refused.

COLLECTOR OF CUSTOMS, MODEL CUSTOMS COLLECTORATE, PESHAWAR vs WASEEF ULLAH S — 2023 SCMR 503 SUPREME-COURT

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