Appeal disposed of by SC: FBR set to recover RD lying with Nazir of SHC

The Federal Board of Revenue (FBR) is poised to recover Regulatory Duty (RD) lying with the Nazir of Sindh High Court (SHC) as the title appeal in this regard has been disposed of by the Supreme Court of Pakistan. According to official sources, the board and the collectors after disposing of the title appeal by SC could now proceed to recover the amounts lying with Nazir, SHC in RD cases on the basis of validation provided by the newly inserted sub-section (2) of section 221A of the customs act 1969.
They said that board was likely to miss its revised revenue target of Rs 3.935 trillion and this decision would give sign of relief to the FBR in order to meet its revenue target for FY 2017-18.
Needless to mention, the government on October 17, 2017 increased RD on the import of 713 items including imposition of RD on 97 new items. However, the SHC quashed the amendment to the Customs Act as it was challenged by the affected parties. The SHC also directed the FBR to refund the duty that the petitioners paid after the issuance of the SRO. But the court later suspended its judgment in order to enable any aggrieved person or party to appeal against the verdict.
Consequently, the FBR had submitted data on a year-to-year basis in SCP, which showed a consistent upsurge in the months that led the issuance of SRO 1,035, stressing the SCP to review its decision in the light of alarming macroeconomic trends and figures and also the balance of payments situation. As the matter was sub judice, the RD on the consignments of the appellants/petitioners were being deposited at Nazir till the final decision.
Then, the SCP has temporarily allowed the government to continue collecting regulatory duty on over 356 import items, providing a sigh of relief to the board. The three-judge bench of the apex court headed by Chief Justice of Pakistan Mian Saqib Nisar provided interim relief to the government against a decision of the SHC.
Now, the three-judge bench consists of CJ Mian Saqib Nisar, Justice Umar Ata Bandial and Justice Ijaz ul Ahsan in the order stated that "the contents of CMA no 1623-L/2018 disclose the latest development which have taken place after filing of these appeals with regard to amendment in law and consequent issuance of certain SRO(s).
The learned ASCs for the appellants stated that on account of subsequent development and amendments in the relevant provisions of law, the present matter have been rendered infructuous. In this view of the matter, these appeals are disposed of.
It is however clarified that any observation made or finding given in the impugned judgment(s) on the basis of the erstwhile law shall not cause any prejudice to the appellants/petitioners. Further, in case at any point in time, the question of validation of the amended law or SRO(s) is raised before any court of competent jurisdiction, the same shall be independently decided on its own merits."
Resultantly, the board has issued a circular C-no 7/22/S/Lit-SC/2018, intimating all concerned collectors that now they could proceed to recover the amounts lying with Nazir, SHC in RD cases on the basis of validation provided by the newly inserted sub-section (2) of section 221A of the Customs Act, 1969 as the title appeal in this regard was disposed of by SC.