ISLAMABAD, Nov 28: The Supreme Court on Thursday agreed to decide the issue whether the importers of Azad Jammu and Kashmir were subject to Pakistani custom laws or not.
The apex court is called upon by an industrialist from the AJK to decide the legal status and position of the importers of Azad Jammu and Kashmir and the goods imported by them through Pakistan.
After hearing Advocate Malik Mohammad Azam, counsel for the petitioner, who is an industrialist from Bhimbar Azad Kashmir, the court accepted the petition for leave to appeal and issued notice to the federation of Pakistan to give its view on the points raised in the petition.
The petitioner stated that the AJK was constitutionally an independent state and being a land- locked country was importing goods through Pakistan. He said as the AJK was an independent state, the government of Pakistan had no right to impose custom on goods meant for AJK, as custom duty could only be imposed on the imports which were destined to Pakistan.
The SC bench, comprised Chief Justice Shaikh Riaz Ahmad, Justice Qazi Mohammad Farooq, and Justice Mian Ajmal.
The petitioner stated that the Constitution of Pakistan 1973 defined Pakistan and the State of Azad Jammu and Kashmir did include in Pakistan.
The petitioner stated that if the goods were imported into the AJK and those were transit from Pakistan, as AJK being a land-locked country, did not mean that fiscal laws of Pakistan would ipso facto effect the AJK.
The court was also requested to decide whether the goods imported into the AJK would be subject to Customs Act, Sales Tax Act, and Income Tax Ordinance, even though they were not for consumption in Pakistan and their destination was the state of AJK.
The court is further requested to decide whether any provision of the Customs Act 1969 viz Section 79 for whom consumption or Section 104 in-bonding and than ex-bonding for whom consumption, is applicable to such goods.
The petitioner stated his industrial unit was located in Bhimber, AJK, outside the geographical limits of “Pakistan”, and no tax could be imposed by the Pakistani legislature without a bilateral agreement.
The petitioner stated that his writ petition was decided by the Lahore High Court, Rawalpindi Bench, relying upon an earlier decision of the high court. The petitioner stated that much water had passed under the bridges since the previous judgment in 1998.