The collection of a 10 percent regulatory charge, amounting to billions of rupees, from six oil companies on the import of gasoline in 2022 has been affirmed by the Customs Appellate Tribunal.
The ruling permitting departmental appeals against a Collector Customs (Appeals) order in favor of the oil importers was passed by the two-member panel. Among the importers are Puma Energy Pakistan Ltd., Hascol Petroleum Ltd., Taj Gasoline Ltd., My Petroleum (Pvt) Ltd., Gas & Oil Pakistan Ltd., and Euro Oil (Pvt) Ltd. Details indicate that the businesses claimed to have benefited from SRO 806(1)/2022’s exemption from the regulatory obligation.
The federal government had imposed a 10 percent duty on gasoline imports through the same SRO, with the caveat that the regulatory duty would not be applied to shipments for which letters of credit (LCs) had already been opened or were at sea. As a result, the companies were not able to receive the claimed benefit.
Imports of gasoline that have a 10 percent customs charge paid will not be subject to the regulatory duty. The program had a time limit and was in place until June 30, 2022. On July 1, a newly issued SRO 966(1)/2022 took effect, ending the program.
But once the exemption was rejected, the oil importers petitioned the Sindh High Court, requesting that the advantage be extended to include gasoline and other imported items.
The disputed sum was secured by pay orders or bank guarantees, and the High Court granted the import products’ interim release. In its ultimate ruling, the SHC later rejected the applications.
