KARACHI: The Sindh High Court (SHC) has directed the tax authorities to file para wise-comments on a petition filed by M/s Fareed Engineering Works against charging high rate of duty and taxes on a consignment of “overhead cranes and its accessories”.
A two-member bench comprising Justice Munib Akhtar and Justice Saedduddin Nasir heard the petition.
During the hearing, deputy attorney general of Pakistan sought time for submitting para-wise comments from tax department; therefore, the court granted time and directed the authorities to file their respective comments on the next date of hearing i.e. November 1, 2016.
Earlier, counsel for the petitioner stated in its petition that it is doing business of manufacturing and supplying of machinery and engineering works and it had made an agreement with the foreign supplier M/s Henan Mine Crane IM&EX Co, China for import of goods having description two overhead cranes and its accessories at the rate of $15, 640.00 and $20, 296.00, one for M/s Been and second for M/s Rali.
According to the petitioner, after the formalities importer filed goods declarations as per transactional value of 20,296.00, however, staff of the tax department enhanced the duty and taxes at the rate of $86, 420 illegally, arbitrarily and unlawful.
Citing Federal Board of Revenue (FBR) chairman and Model Custom Collectorate Port Qasim collector as respondents, the importer pleaded the court may declare that act of the respondents is illegal, arbitrary and of no legal effect.
The petitioner also pleaded the SHC may direct the respondents to release the consignment and restrain them from taking any coercive action against the petitioner.
