The Sindh High Court has granted Hoora Pharma provisional release of its consignments of sutures detained by Pakistan Customs. This after the company filed a petition seeking the release of its goods during the pendency of its appeal against the impugned order denying it the exemption of sales tax.
The petitioners, through Dr. Farogh Naseem and M. Shahrukh Farogh Naseem, had contended that the consignment should not be charged to sales tax at importation stage under the Sales Tax Act 1990. However, Pakistan Customs refused the exemption, hence, an appeal under the Customs Act 1969 is pending for disposal before the Collector of Appeals.
Dr. Naseem sought the provisional release of the goods, with an undertaking to deposit the differential sales tax amount before the court. Agha Shahid Masood, appearing for the Customs authorities, resisted the application on the ground that the goods did not fall within the exemption.
The bench, comprising Justice Adnan Iqbal Chaudhry and Justice Muhammad Jaffer Raza, after hearing both sides, ruled in favor of the petitioner. They ordered Hoora Pharma to secure the disputed amount of sales tax with the Nazir of SHC through pay orders or bank guarantees, after which Customs was directed to release the goods upon presentation of the requisite certification. The security so deposited shall abide by further court orders.
This decision facilitates Hoora Pharma in receiving its consignments while awaiting a final resolution on the sales tax exemption issue.
