TRANS WORLD INTERNATIONAL INC. (TWI) vs CUSTOMS, FEDERAL EXCISE AND SALES TAX TRIBUNAL Ss

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TRANS WORLD INTERNATIONAL INC. (TWI) VS CUSTOMS, FEDERAL EXCISE AND SALES TAX TRIBUNAL Ss. 32 & 79---SRO 593(I)/91 dated 30.06.1991, Cl. (v)---Plant and machinery imported for the execution of a contract with the Government---Exemption from income tax---Scope---Company / taxpayer had imported a consignment of television cameras and equipment and filed a home consumption bill of entry, while claiming exemption from duties / taxes; applicant submitted indemnity bond / undertaking stipulating that the applicant would obtain and submit the relevant exemption certificate within fifteen days, however admittedly, none was ever obtained / submitted---During the adjudication proceedings, in a departure from its initial stance, the applicant pleaded qualification for exemption from income tax as per Cl. (v) of SRO 593(I)/91 dated 30.06.1991 ('the SRO 593')---Eventually, the proceedings resulted in an order-in-original against the company/taxpayer---Applicant (Company/Taxpayer) was aggrieved by order passed by the Customs, Federal Excise and Sales Tax Appellate Tribunal ('Tribunal') whereby concurrent judgments / findings against it were maintained---Whether the applicant automatically qualified for exemption from payment of income tax under Cl. (v) of SRO 593---Held, that admittedly, the release of the consignment was sought and obtained by the applicant on the basis of an indemnity bond / undertaking expressing that the pertinent exemption certificate would be obtained and submitted before the revenue authorities within fifteen days---Record revealed that no exemption certificate was ever granted to the applicant and consequently none was ever submitted before the Revenue Authorities ; instead the subsequent course of action was adopted, in contradiction of the indemnity bond / undertaking to claim exemption under SRO 593---Respective adjudication fora did not accept the applicant's claim---Clause (v) of SRO 593 provided for exemption to "persons who import plant or machinery for execution of a contract with the Federal Government or a Provincial Government and produce a certificate from the Government"---Three consecutive fact finding forums had found that the applicant did not qualify under the exemption belatedly claimed---Applicant was unable to demonstrate the import of any plant and machinery in the execution of any contract with the Government and furthermore failed to demonstrate the existence of any pertinent exemption certificate and thus remained unable to persuade the High Court to take any view inconsistent with that maintained by the three consecutive forums of adjudication---Therefore, the question framed for determination was answered in the negative, in favor of the respondent/department and against the applicant---Reference application was dismissed, in circumstances.

TRANS WORLD INTERNATIONAL INC. (TWI) vs CUSTOMS, FEDERAL EXCISE AND SALES TAX TRIBUNAL Ss — 2025 PTD 579 KARACHI-HIGH-COURT-SINDH

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