SHALIMAR INTERNATIONAL vs MEMBER JUDICIAL CUSTOMS APPELLATE TRIBUNAL BENCH-II, ISLAMABAD Ss

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SHALIMAR INTERNATIONAL VS MEMBER JUDICIAL CUSTOMS APPELLATE TRIBUNAL BENCH-II, ISLAMABAD Ss. 32 & 80---Customs Rules 2001, R. 438---SRO 1125(I)/2011 dated 31.12.2011 ('SRO'), Conditions (i) & (iv)---Benefit under SRO, entitlement to---Scope---Commercial importer---Supply to a zero rated-sector---Scope---Condition (i) of the SRO merely provides that the benefit of the SRO would be available to every person engaging in the business of five sectors (i.e. textile, carpets, leather, sports and surgical goods) who is registered as a manufacturer or an importer or an exporter or a wholesaler---In the event that the applicant was a registered manufacturer in one of the five zero-rated sectors mentioned in Condition (i) of the SRO, sales tax at the time of import was to be charged at the rate of zero percent on goods useable as an industrial input---Condition (iv) of the SRO then provided that where a commercial importer imported goods and supplied them a zero rated-sector for industrial use, sales tax at the rate of 2% would be chargeable at import stage along with 1% value addition tax---Given the clear language of Condition (iv) of the SRO, the applicant, as a registered importer importing goods that fall within the domain of textile and were supplied to a zero-rated sector for industrial use, fell within Condition (iv) of the SRO---In other words, the applicant as a registered importer was entitled to the benefit of the SRO, but the benefit that was attracted in the case of the applicant was payment of sales tax of a reduced rate of 2% along within 1% value addition tax at the import stage and not payment of sales tax at the rate of zero percent---Impugned orders were rightly passed by the Collectorate as well as Customs Appellate Tribunal---Thus, the proposed question was answered in favour of respondent / Collectorate and against the applicant / importer---Reference Application, filed by commercial importer, was dismissed in circumstances.

SHALIMAR INTERNATIONAL vs MEMBER JUDICIAL CUSTOMS APPELLATE TRIBUNAL BENCH-II, ISLAMABAD Ss — 2025 PTD 1354 ISLAMABAD

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