MR. MUHAMMAD ASLAM, TECHNICAL MEMBER.-1. This appeal has been filed by M/s. M.T. Engineering, Islamabad against the Order-in-Original No. 7/96, Case No. SI/Misc/IB/ 1410/96/IX dated 12.5.1997, passed by the Collector of Customs, Appraisement, Karachi.
2. The issue involved is whether or not the Compressed Natural Gas (CNG) cylinders imported by the appellants are entitled to exemption from payment of duty and taxes etc., in terms of notification No. SRO 367(I)/94 dated 9.5.1997.
3. The stand of the Respondent (the Collector) is that the (goods-in-question are not entitled to the benefit accorded vide notification referred to above because these are being manufactured locally as well and also because their import status otherwise is banned because these are old and used.
4. The Respondent, therefore, rightly confiscated the goods and allowed their release against i.e of 10% of the assessable value, in addition to payment of duty and taxes leviable thereon.
5. The thrust of the appellants is just the opposite. They maintain that the said cylinders are not locally manufactured and that the authorities of the Karachi Custom House have themselves been accepting this position as such in the past and releasing the stuff free of duty and taxes etc. Attention of the Tribunal has also been drawn towards Central Board of Revenue's letter dated 2.4.1995 which clearly supports this position held by the appellants. They further maintain that, in view of the specific permission granted by the Ministry of Commerce for one time import of 310. Nos of such cylinders, the allegation that they had violated the Import Policy Order had became redundant. Hence, the goods automatically became entitled to release free of any ITC fine.
6. We have seen the case record and examined the written as well as verbal submissions of the appellants. In view of the permission granted to the appellants by the Ministry of Commerce on 4th August, 1996, which was duly endorsed to the Central Board of Revenue as well as the Customs authorities at Karachi and the confirmation by the Central Board of Revenue dated 2nd April, 1996 that CNG cylinders are not being manufactured locally and that the same are entitled to exemption under SRO 367(I)/94 dated 9.5.1994, the Tribunal holds that the orders passed in the matter by the learned Respondent have become infructuous in the, eye of law and, therefore, not enforceable. The net result is that the goods imported by the appellants in the instant case are entitled to~ the benefit of exemption under the notification No. SRO 367(I)/94 dated 9.5.1994 and that no ITC action is envisaged therein as the parent Ministry has already granted them specific permission in this respect.
7. In view of the above, the orders passed by the leamed Collector become non-existent in the eye of law and are declared to be so. The appeal succeeds on merit.