KARACHI: The Sindh High Court (SHC) sought comments from the tax authorities on a constitutional petition filed by M/s SIGMA Refrigeration (Private) Limited against impugned recovery notice of Rs 107.109 million in respect of sales tax on non-payment against the supply of cellular mobile phones (QMobile).
A two-member bench comprising Justice Irfan Sadat Khan and Justice Arshad Hussain Khan heard the petition of M/s SIGMA Refrigeration. The court heard arguments presented by the petitioner and respondent. The respondent was also asked to submit reply in the case on the next hearing.
Earlier, petitioner’s counsel stated that Regional Tax Office-II (RTO-II) Inland Revenue (IR) Audit Unit-III, Zone – VIII deputy commissioner issued notice dated June 2014 to the petitioner for recovery of sales tax amounting to Rs 107,109,222. The petitioner was served notice on non-payment against the supply of cellular mobile phones (QMobiles) along with default surcharge.
According to the petitioner, it explained that sale tax on cellular phones is subject to special regime and process is laid down the SRO 542 whereby sales tax is levied as a fixed sum which was originally Rs 500 irrespective of the value of the product and through SRO 460 time of incident was split in two parts i.e sales tax paid at the time of import and at the time of sale or activation of the sim.
Citing Ministry of Law secretary, Revenue Division secretary, Regional Tax Office-II (RTO-II) IR chief commissioner, IR deputy commissioner and others as respondents, petitioner pleaded the court may set aside impugned demand notice and restrain the respondents from taking any coercive action against it.
