1. ' IMAM ALI G. KAZI, J.--The petitioners are a textile mill manufacturing textile fabric from man-made fibres. They had imported 3 consignments of Viscose Staple Fibre between 21-6-1989 to 27-8-1989.
2. On the arrival of their goods petitioners filed In-Bond Bills of Entry with the Customs Authorities.
3. Later on the petitioners filed 14 Ex-Bond Bills of entry for release of their goods. According to them although no duty was chargeable on the goods imported by them as exemption from payment of custom duties was granted by the Government of Pakistan, the respondents imposed Regulatory Duty and demanded it. Such levy by the Customs Department necessitated them to file this petition under Article 199 of the Constitution of the Islamic Republic of Pakistan, 1973.
4. ' The petitioners in the memo. Of petition formulated following question for consideration of this Court.
5. "Whether an exemption notified by the Federal Government under section 19 of the Customs Act, 1969 in respect of Customs duty will also apply to any duty imposed under section 18(2)
6. (Regulatory Duty) of the said Act."
7. ' The main thrust of the contentions raised by Mr. Muhammad All Saeed, Advocate for the petitioner, was that Regulatory Duty when imposed is one of the Customs Duties and once an exemption in the payment of customs duty is granted by the Federal Government Regulatory Duty will no more be payable.
8. ' According to the admitted facts the statutory Customs duty on Viscose Fibre, under Harmonised Customs Code was chargeable under the Finance Act, 1989, at the rate of 40% ad valorem. The Government of Pakistan in exercise of their powers under section 19 of the Customs Act, 1969, published a SRO No,505(I)/88 on 29-6-1988 whereby several imported items were allowed full or partial exemption from the payment of Customs duty. This notification did not include the goods imported by the petitioner& However, on 17-6-1989 the SRO mentioned above was amended by another Notification bearing No, SRO 639(1)/89 whereby man-made fibres were included in the list for exemption from payment of that part of duty which was in excess of duty calculated at Rs,15 per kg. The Appraising Officer of the Customs Department allowed petitioners exemption from payment of Customs duty in excess of duty calculated at Rs,15 per kg. But subjected their goods to the Regulatory Duty at the rate of Rs,5 per kg. This Regulatory Duty was imposed by the Notification bearing No, SRO 679(1)/89, dated 29-6-1989. The present petition has been filed to question the validity of that part of the order passed by the respondents which claims payment of Regulatory Duty of Rs,5 per kg. On Viscose Fibres imported by the petitioners.
9. ' Mr. Muhammad Ali Saeed, Advocate for the petitioners, relying on the judgment passed in the case of Crescent Board Limited v. Collector of Customs, C.P. No,D-1178 of 1989 and other cases reported in PLD 1991 SC 329, PLD 1977 Karachi 947 and PLD 1976 Lahore 886 contended that the Regulatory Duty is to be considered as Customs duty and exemption granted under section 19 of the Customs Act, 1969 by the Government of Pakistan Regulatory duty will be taken to be a part of Customs Duty and exemption from its payment allowed. This was the only contention raised by him in support of this petition but when he was confronted that exemption in payment of certain Customs duties then chargeable were exempted by SRO 639(1)/89 issued on 17-6-1989 while the Regulatory Duty was imposed subsequently on 29-6-1989 by SRO 679(I)/89. The exemption allowed earlier cannot be extended to the payment of Regulatory Duty imposed by subagent Notification. He then contended that in case Regulatory Duty is subsequently imposed the previous notification allowing exemption from Customs duty will still hold field and the Federal Government can withdraw such exemption by issuing another notification. He referred to the case of K.M.
10. Chikaputta Swamy v. State of Andhra Pradesh AIR 1985 SC 956 to support his such contention.
11. ' In order to resolve the controversy in this petition it is necessary to examine the provisions of section 19 of the Customs Act, 1969, which is reproduced below:-- "19. (1) The (Federal Government), subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, may, by Notification in the official Gazette, exempt any goods imported into, or exported from, Pakistan or into or from any specified port or station or area therein, from the whole or any of the customs duties chargeable thereon.
(2) A notification issued under subsection (1) shall be effective from the day specified therein, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day."
12. The Federal Government indeed under the above provision of law have very wide powers to grant exemption from payment of Customs duties chargeable on any goods imported into or exported from Pakistan subject to such conditions, limitations or restrictions as it may think fit through a notification issued by it. On the plain reading of section 19(1) of the Act it clearly indicates that such exemption can only be granted in respect of Customs duties "chargeable" at the relevant time.
13. Notification issued under section 19(1) of the said Act will not extend to the duties that may be levied after the issue of such notification. As indeed such a notification cannot hold good for all times to come to include even the levy of duties chargeable in future. The notification dated 29-6- 1989 issued by the Government of Pakistan imposing Regulatory Duty on man-made fibres after the notification allowing exemption from payment of Customs duty will be valid and permit the respondents to charge such duty on the goods imported by the petitioners. The case referred to by Mr. Muhammad Ali Saeed, Advocate for the petitioners, has no application to the facts of the present case.
14. ' For the foregoing reasons we find no force in this petition which is dismissed with costs.