Etihad Sugar Mills Ltd. vs Province of Punjab S — 2025 YLR 1553 LAHORE-HIGH-COURT-LAHORE

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Etihad Sugar Mills Ltd. VS Province of Punjab S.9a---Export of sugar to afghanistan---Timeline of 60 days---Subsidy to exporter /Sugar-Mill---Entitlement---Petitioners (Sugar Mills) filed constitutional petition against non-release of subsidy/ amount by State Bank of Pakistan (respondent)---assertion of the State Bank of Pakistan was that petitioners (Sugar Mills) were bound to export sugar within 60 days---Whether export of sugar by the petitioners to afghanistan beyond 60 days could be treated as ineligibility---Held: It is admitted position that approval in favour of the petitioners for export of sugar to afghanistan was granted on 03.06.2019, meaning thereby that the same was before closing of fiscal year---From contents of the Office Memorandum, dated 10.12.2018, issued by Ministry of Commerce and Taxation, Government of Pakistan, it was clear that there was no stipulation of export of sugar within 60 days from the sanction---The said decision of the Ministry of Commerce and Taxation was notified by the State Bank of Pakistan through EPD Circular letter No. 22 dated 18. 12.2018; even in the said circular, there was condition regarding export of sugar within a specific period---In this background the assertion of counsel representing State Bank of Pakistan that petitioners were bound to export sugar within 60 day, being contrary to record, could not be given any weightage---Notably, record reveals that payments were made in the months of July, 2019 and august, 2019, thus assertion of counsel, representing respondent-State Bank of Pakistan, that no payment could be made after 30.06.2019, ran contrary to the record---It was a matter of record that subsidy claim was introduced, pursuant to the said Office Memorandum, issued by the Federal Government and the same could only be halted pursuant to decision of the competent authority which was properly notified---State Bank of Pakistan could not withhold payment of the petitioners on any other basis (official communication /decision)---Report submitted by respondents showed that the payments were made in favour of Sugar Mills (petitioner No.1) in the months of July and august, 2019---Thus, the respondents failed to justify withholding of outstanding amount of the petitioners (Sugar Mills)---High Court directed respondents to release outstanding amounts in favour of petitioners(Sugar Mills)---Constitutional petition, filed by Sugar Mills, was allowed accordingly.

Etihad Sugar Mills Ltd. vs Province of Punjab S — 2025 YLR 1553 LAHORE-HIGH-COURT-LAHORE

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