Petroleum supplies: SHC orders customs authorities to refrain from creating hindrances

The Sindh High Court (SHC) has ordered customs authorities to refrain from creating hindrances in petroleum supplies of Z.Y. Company Bulk Terminals (Pvt) Ltd., which are not part of dispute over 1,000 MT motor gasoline imported from Malaysia between them.

A division bench of SHC headed by Justice Aqeel Abbasi issued the orders in a petition filed by the company through Omair Nisar Advocate against the blockage of deliveries to oil marketing companies without issuing any show-cause notice to it. Collector of Customs Karachi, Deputy Collector (Headquarters) Anti-Smuggling Organization and others have been made respondents in the petition.

The petitioner submitted before the court that some of its client OMCs imported consignments of Motor Gasoline 92-RON onboard a vessel MT Hafnia Europe, which arrived at the Karachi Port on 17-03-2020 and after completing OGRA and Customs formalities the said vessel discharged some quantity of the cargo carried onboard thereof in the shore-tanks of the petitioner's terminal. Out of the said quantity, 1,000 MT (999.367 MT received quantity) of Gasoil 92-Ron belonged to M/s Fossil Energy (Pvt.) Limited.

Petitioner stated that on April 10, 2020, suddenly a vehicle concerned departments of Anti-Smuggling Organizations arrived at the gate of the petitioner's terminal and informed the staff there that they had intercepted the tank lorry and had detained the product carried therein along with the said tank lorry.

It was further informed that since the said Respondents apprehended commission of illegalities by Fossil Energy, therefore, no further deliveries of any OMCs products were to be made from the Petitioner's terminal till further notice/directions, petitioner stated.

According to written order of the court, counsel for petitioner submitted that the petitioner is an oil marketing company, which has been licensed to import and deal with the petroleum products, whereas, about 1000 MT of Motor Gasoline (Ron 92) was imported from Malaysia on 17th March, 2020, whereafter, duty and taxes were paid and the consignment was out of charge.

However, according to counsel, the customs authorities raided the Oil Terminal of the petitioner and are not allowing the petitioner to make any deliveries to the oil marketing companies, without issuing any show cause notice nor the petitioner has been confronted with the allegation or reason for taking any such action against the petitioner.

The order said that counsel argued that there is an apprehension that the respondents may register a false case against the petitioner in respect of lawfully imported petroleum products in violation of law and prayed that the respondents may be restrained from taking any adverse coercive action against the petitioner and they may be directed to provide an opportunity of being heard to the petitioner to explain its position.

Court ordered to issue notice to the respondents and directed to conduct themselves strictly in accordance with law and may not create any hindrance in respect of the petroleum supplies which are not the subject matter of the current dispute.