KARACHI: The Sindh High Court (SHC) has sought comments from the tax authorities on a petition filed by M/S International Industries (Private) Limited and M/S International Steel (Private) Limited, seeking exemption of customs duty and sales tax on its consignment of hot rolled coils, cold rolled coils, galvanized sheets and welded pipes /tubes.
A two-member bench, comprising Justice Munib Akhter and Justice Abdul Malik Gaddi, heard the petition. During the hearing, additional attorney general requested the court for time to submit para-wise comments.
Earlier, the counsel for the petitioners stated that FBR has exempted the goods imported by the petitioner from the sales tax on manufacturing in the bond for the purpose of exports under the rules of SRO 450 of 2001. Under the said SRO, the goods are exempted for the customs duty and the sales tax on the import as well as at the export stage.
According to the petitioners, in November, 2014, officials of the Model Customs Collectorate, Peshawar intercepted the shipments of the petitioners’ goods at the Torkham Border meant for exporting to Afghanistan and imposed 17 percent sales tax on the pretext of SRO 190 (1) / 2002. However, the goods were allowed to be exported to Afghanistan on furnishing the indemnity bond by the petitioners.
The counsel argued that goods of the petitioners have not been included in the specified list as to attract sales tax. The petitioners approached the respondents asking them to clear the position but they are not responding.
Citing Ministry of Finance secretary, Inland Revenue (IR) member, Ministry of Commerce, Peshawar Customs collector as respondents, the petitioners pleaded the SHC to set aside imposition of sales tax. The court was further requested to restrain the respondents from taking any action against the petitioners.
