EDB targets 2/3 wheeler

The Engineering Development Board (EDB) has advised all the Provincial Secretaries (Excise & Taxation) including AJK and Federal Govt. Islamabad to provide company wise & brand wise data of 2/3 wheelers registered during 2009-10 & 2010-11, in accordance with its format.

Dr. Muhammad Zubair, General Manager (Tariff) EDB in his letter No. EDB/TBS-II/11 dated April 21, 2011 stated that OEMs of vehicles are allocated a quota of CKD kits for imports under concessionary regime for the assembly of vehicles during a year based on the production of previous year; and at the end of each fiscal year, the OEMs are required under the SRO, 656(1)12006 to submit the records of inputs used for the assembly/ production of vehicles during, preceding year.

"It has been noted that certain OEMs of 2/3 wheelers procure components from illegal sources and misreport production/ sales of 2/3 wheelers. Further, vehicles (2/3 wheelers) having the engine & chassis numbers are being registered under duplicate numbers in different cities. It has also been reported that certain unscrupulous assemblers have been found involved in getting their products registered with provincial registration authorities against invalid/ bogus manufacturing certificates, purportedly issued by EDB. This malpractice is not only affecting the genuine assemblers of 2/3 wheelers, but also defeating the regulator regime and depriving national exchequer of its legitimate share," the General Manager alleged.

He added that in order to put an end to illegal assembly/ manufacture of vehicles and consequent loss to the exchequer, EDB has established a database to maintain & reconcile the data of production & sales of 2/3 wheelers to ensure proper payment of taxes & duties chargeable thereon. To enable the Engineering Development Board to accomplish the aforesaid task of national importance & interest, assistance from the provincial registration authorities is solicited. It is accordingly requested to kindly provide the company and brand-wise data concerning the 2/3 wheelers registered during the year 2009-10 and 2010-11 (up to March 31st 2011), on the enclosed format, Dr. Zubair concluded.

Copies of this letter were also addressed to; the Member (Inland Revenue) Federal Board of Revenue, Islamabad, and Chairman, Pakistan Automotive Manufacturers' Association (PAMA), Karachi.

It may be mentioned here that various complaints regarding misuse of the EDB facilities as explained above were already on record with FIA and the Customs Department against local Car, Trucks and Tractor Assemblers but amazingly the EDB authorities had never bothered to initiate any such inquiries or called for collection of data about 4-wheelers, which smears discrimination against 2/3 Wheelers.

-Nasir Mahmood

-Published on page#-08 in June-2011 issue of MOBILE WORLD Magazine.

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Consumer Court orders Sazgar Engineering to Replace Rickshaw Engine

The authorized dealer of Sazgar Engineering did not repair the Rickshaw on pretext that it was not covered under Warranty. The Complainant approached a private Rickshaw Mechanic who opened the engine and found that Ring Piston and other parts of the engine were broken into pieces. The defective and substandard broken parts of engine of the Rickshaw caused great monetary loss to Complainant along with physical and mental torture. Complainant served a legal notice to respondent on 08-03-2008 under Section 28 of the Punjab Consumer Protection Act 2005 and requested them to replace engine of the Rickshaw or refund price of the engine of Rickshaw and pay damages

The District & Sessions Judge, District Consumer Court Lahore deciding a case against M/s Sazgar Engineering Works Limited ordered the Company to replace Engine of a Rickshaw purchased by Complainant Riaz Ahmed with a brand new Engine within 10 days from the date of the Order and issue a new Warranty for the same in addition to pay cost amounting to Rs5,000/-.

According to detail; Complainant Riaz Ahmed s/o Muhammad Umer purchased a 4 stroke CNG Rickshaw SAZGAR on installments and claimed for recovery of damages amounting Rs92,000/-. He alleged that soon after its purchase the Rickshaw developed serious problems in its engine as well as other parts such as Ring Piston, Axel, Timing Chain and other mechanical faults. It was further alleged that on 26-02-2008 the engine of the Rickshaw ceased.

The authorized dealer of Sazgar Engineering did not repair the Rickshaw on pretext that it was not covered under Warranty. The Complainant approached a private Rickshaw Mechanic who opened the engine and found that Ring Piston and other parts of the engine were broken into pieces. The defective and substandard broken parts of engine of the Rickshaw caused great monetary loss to Complainant along with physical and mental torture. Complainant served a legal notice to respondent on 08-03-2008 under Section 28 of the Punjab Consumer Protection Act 2005 and requested them to replace engine of the Rickshaw or refund price of the engine of Rickshaw and pay damages. But Company refused to accede to demand of the Complainant.

Complainant filed case against Sazgar Engineering Works Limited, Director Punjab Small Industries Corporation and Hamza Enterprises, Dealer for Sazgar CNG Rickshaw.

After hearing arguments of the counsel for the parties and perusing record, Presiding Officer of District Consumer Court observed that the case was filed by Complainant within Warranty period. He was paying regular monthly installments of the Rickshaw. During cross examination respondents had not rebutted that on 26-02-2008 when the Rickshaw had only covered 3900 km and which was within Warranty period, engine of the rickshaw had ceased and authorized dealer of the manufacturer had failed to provide services to the Complainant and he was constrained to get engine of his Rickshaw overhauled from some other workshop.

The Court through its Order dated 29-04-2009 said that after carefully scanning evidence of both the parties, allegation leveled by the Complainant has been proved. It has been proved that Rickshaw delivered to Complainant was defective from the very first day and created problems time and again. The Complainant has proved his case which is accepted.

The Court directed respondent Company Sazgar Engineering Works Limited to replace Engine of Rickshaw of the Complainant with a brand new Engine within 10 days from the date of this Order and shall issue a new Warranty for the same. The Company was also burdened with costs amounting to Rs5,000/-.

-A. H. Khanzada, e-mail: mymworld@cyber.net.pk