ISLAMABAD: The Islamabad High Court (IHC) has disposed of a case filed by M/s MOL Pakistan Oil and Gas Company, restraining the Federal Board of Revenue (FBR) from recovering claimed outstanding tax amount of Rs 6,420,171 from the appellant.
The court also directed the FBR’s filed office, Regional Tax office (RTO), Islamabad to decide the company’s pending stay-appeal challenging recovery of Rs 6,420,171 within 30 days.
The IHC single bench comprising Justice Aamer Farooq heard the case and issued directives to the Regional Tax Office, Islamabad. The court also directed the FBR’s field office i.e. RTO to submit compliance report immediately after expiration of deadline. Petition was filed through company’s representative Zost Imre.
Meanwhile, the court also directed the RTO to abstain from realizing recovery of department’s claimed outstanding tax amount Rs 6,420,171 till decision of appellant’s appeal pending before the department.
M/s MOL Pakistan Oil and Gas Company Limited had filed the case seeking restrictions for RTO about recovering outstanding tax amount of Rs 6,420,171.
M/s MOL Pakistan Oil and Gas Company had challenged a RTO order, dated May 25, 2016 before the IHC. The department had issued the order under provisions of Sales Tax Act, 1990 for the tax year 2014-15.
Federal Board of Revenue (FBR), officers of RTO including Commissioner Inland Revenue, Additional Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) were made respondent in the case.
The appellant had 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. Hence, the order may be declared null and void.
