A customs appellate tribunal has upheld the imposition of a 10 percent regulatory duty, amounting to billions of rupees, on six oil companies for the import of petrol (motor spirit).
The decision was rendered by a two-member tribunal, which ruled in favor of departmental appeals against a previous order by the collector customs (appeals) that had favored the oil importers. The companies involved in the dispute include Hascol Petroleum Ltd, Gas & Oil Pakistan Ltd, Taj Gasoline Ltd, My Petroleum (Pvt) Ltd, Puma Energy Pakistan Ltd, and Euro Oil (Pvt) Ltd.
The oil companies had invoked an exemption from the regulatory duty under SRO 806(1)/2022, issued on June 20, 2022. However, their claim was rejected because the federal government had introduced a 10 percent duty on petrol imports through the same SRO, specifying that the regulatory duty would not apply to shipments for which Letters of Credit (LCs) had already been opened or were in transit.
Imports of petrol on which a 10 percent customs duty had been paid were exempt from the regulatory duty under this scheme.
Following the denial of exemption, the oil importers had approached the Sindh High Court, seeking an extension of the benefit to imported goods, including petrol. The court granted provisional release of the goods upon securing the disputed amount through pay orders or bank guarantees. However, in its final ruling, the high court dismissed the petitions.
The decision of the customs appellate tribunal signifies a significant legal development in the ongoing dispute over regulatory duties imposed on petrol imports, impacting major players in the oil industry in Pakistan.
Related topics:
How Long Can You Keep Fuel In A Jerry Can?
