KARACHI: The Sindh High Court (SHC) has disposed of a petition filed by M/s Tri Star Industries ( Private) Limited, seeking exemption from withholding tax on import of its plant and machinery and also seeking release of the goods through accepting the bank guarantee of the amount of withholding tax involved in the matter. A two-member bench, headed by Chief Justice Sajjad Ali Shah heard the petition.
During the hearing, the counsel for the petitioner submitted that the respondents had passed the order on the classification dispute, therefore, the court may allow it to withdraw the petition.
In the last hearing, the court had directed the collector Appraisment to release the said goods through accepting the bank guarantee of the amount of withholding tax involved in the matter. The court had also directed the concerned chief commissioner to decide the revision application of the petitioner within shortest possible time.
Earlier, the petitioner’s counsel stated that petitioner’s company is engaged in the business of manufacturing of embroidered fabric and is assessed to tax at Regional Tax Office. According to the petitioner, it filed an application before officials of customs authorities and requested for exemption on import of plant and machinery on the basis of sub-clause (v) of the SRO 947 (1)/2008 on 5th September 2008. However, respondents rejected the application of the petitioner without merit.
Citing commissioner Inland Revenue, Zone – III, RTO, I. Chief commissioner Inland Revenue, RTO, I. Collector Appraisment as the respondents, the petitioner pleaded the SHC to direct the respondents to exempt the petitioner from withholding of tax on the basis of the financial accounts.
