ISLAMABAD: Hearing a reference involving claims about outstanding tax of Rs 218,501,339, the Islamabad High Court (IHC) directed the parties to finalize arguments and submit supporting documents in the court.
With the said direction, the court, comprising single bench of Justice Aamer Farooq, adjourned the hearing until October 26 for final arguments.
OMV Pakistan Exploring GMBH has filed the case challenging a show cause notice issued by the field office of Federal Board of Revenue i.e. Large Taxpayers’ Unit, Islamabad.
OMV Pakistan Exploring GMBH had filed the case seeking restrictions for Large Taxpayers Unit, Islamabad about recovering outstanding tax amounts of Rs 636,222,422 and Rs 452,302,253 under the head of sales tax and federal excise duty respectively. The appellant had also sought from court to nullify the LTU notice carrying the claim about outstanding tax amount.
The appellant had challenged an LTU order, dated June 06, 2016 before the IHC after exhausting the departmental platform for appealing disputing orders. The department had issued the order under provisions of Federal Excise Duty Act, 2005 and Sales Tax Act, 1990 for the tax years 2011-14.
Federal Board of Revenue (FBR), officers of LTU including Commissioner Inland Revenue, Deputy Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) were made respondent in the case.
The appellant had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard.
The appellant submitted before the court that the impugned order was issued under mala fide intentions and had no legal standing or authority and the court may decide on relief which it deemed appropriate in this regard. It also stated that due legal course was not followed by the department in issuing the order.
Because of departmental lethargy, the company was compelled to file the petition before the IHC in order to seek lawful relief, it stated.
The petitioner had prayed the court operation of the impugned order issued by the tax authority may kindly be suspended till the decision of appeal pending before the LTU.
