1. ' AJMAL MIAN, CT-The above petition involves two points namely, whether Cone Winder Machines were subject to the levy of the customs duty and secondly what should have been the rate of regulatory duty. On the first point Mr. Khalid Anwer concedes that there is a Supreme Court judgment namely, in the case of Naveed Textile Mills Ltd. v. Assistant Collector (Appraising) Custom House, Karachi and others reported in PLD 1985 SC 92, whereas on the second point the case of M/s. Yousuf Re-Rolling Mills v. The Collector of Customs and others reported in PLD 1989 SC 232, is in favour of the petitioner wherein it has been held that under subsection (2) of section 18 of the Customs Act, regulatory duty can be imposed to the extent of 50% of the customs duty provided in the First Schedule on the Articles mentioned therein. In the instant case the First Schedule provided customs duty at the rate of 40% and, therefore, regulatory duty could have been to the extent of A 20%'.
2. ' We would, therefore, allow the above petition on the second point and declare that the regulatory duty in excess of 20% is without lawful authority and of no legal, effect. The above petition stands disposed of but there will be no order as to costs.