Jang Group petition: SC adjourns hearing | Pakistan Press Foundation (PPF)

Pakistan Press Foundation

Jang Group petition: SC adjourns hearing

ISLAMABAD: The Supreme Court of Pakistan on Tuesday adjourned proceedings sine die on the petitions filed by Jang Group of newspapers in its row with the government over alleged nonpayment of taxes and duties by the group in the import of newsprint. . Counsel for the group, Sharifuddin Pirzada, argued with the court that since it was not taking up for hearing their main petition, proceedings on the miscellaneous applications taken up on Tuesday be suspended.

He further said the hearing needs to be suspended for the time being as ‘negotiations are going on between the government and his clients for an out of court settlement of the issue.

Abid Hassan Minto, another counsel for the Jang Group, pleaded with the court that a larger bench be constituted to hear their petition later.

The group has moved the court after its row with the government which moved various state agencies into stopping newsprint supplies to its publications. The court gave relief to the publishing house by ordering the government to release its newsprint sealed in its warehouses.

On the previous hearing, the court issued notices to the Central Board of Revenue (CBR) and the Customs Department, as the group filed application with the court stating the government had committed its contempt by violating its orders.

On Tuesday, Deputy Attorney General Maulvi Anwarul Haq filed point to point replies to the allegations raised by the Jang Group against CBR and the Customs Department.

The CBR stated, in its reply, that it received the order of the Supreme Court for the release of newsprint after a three-day delay. The court issued orders on February 1while the CBR received it on February 4, the statement said.

Another statement by the Secretary (Customs Judicial) CBR, prayed to the court for dismissal of the petition as it said “misleading and devoid of facts.” It further stated that the petitioners be directed to “exhaust the departmental remedies against the orders of Collector of Customs (Appraisement)” available to them under relevant laws.

The statement gives details of the import of newsprint and its release to the Jang Group as has been recorded by CBR.

“It is a matter of record that a total quantity of 717.711 M/tons (1 703 reels) of newsprint paper has been cleared during the period from 31/12/1998 to 15/01/1999, against various ex-bond as well as home consumption bills of entry filed by the petitioners, “the statements says.

Denying that the show-cause notices issued by the Collector of Customs (Appraisement) were based on false charges, the statement said “during the period from 1994-95 to 1997-98 the petitioners evaded duty/taxes to the tune of Rs 593 million by misusing the facility of concessionary notifications.”

“The petitioners evaded Customs duty to the tune of Rs 145 million and sales tax amounting to Rs 22 million (total Rs 167 million) during the year 1994-95 alone,” the statement said as it alleged the group for reaping the benefit through discrepancies between newsprint imports and newspaper circulation.

“In all the petitioners had evaded Rs 521 million on account of Customs duty and Rs 72 million as sales tax (total Rs 593) during the last four years (1 994-95 to 1997-98),” the statement deposed.

Referring to the suspending release of 1094 reels of newsprint ordered by the SC, the statement said the paper was “detained at the time when the same was about to be out of Customs charge, in pursuance of an information received in Appraising Intelligence Branch of the Collectorate to the effect that there was a misdeclaration of description in respect” of the reels.

“The informer further emphasised that if the action would not be initiated immediately, the government exchequer was bound to suffer a substantial loss of its legitimate revenue”, the statement added.

Source: Nation

Date:2/11/1999