Motor spirit cargo duty: LHC waives 10% pre-SRO arrivals
A Lahore High Court division bench upheld Shell Pakistan’s exemption and ordered Customs to release bank guarantees tied to the disputed 10% regulatory duty.
The LHC held motor spirit cargoes that arrived before SRO 806(I)/2022 are not liable for 10% regulatory duty.
A division bench dismissed Customs Collectorate appeals from Lahore and Faisalabad against an April 27, 2023 single-judge ruling for Shell Pakistan.
The bench ordered Customs to release bank guarantees furnished against the disputed duty.
SRO 806 allowed exemption if LCs were already opened or cargoes were on the high seas; the court treated those as alternative grounds.
The company said the cargoes had arrived and berthed well before June 20, 2022, and Customs did not dispute the berthing dates.