KARACHI: The Sindh High Court (SHC) has issued notice to the Pakistan International Airlines Corporation (PIAC) on an income tax reference application filed by commissioner Inland Revenue Zone-I, Large Taxpayers Unit, challenging impugned judgment of the appellate tribunal over recovery of federal excise duty on excess baggage ticket (EBT).
While the hearing of the application, a two-member bench, headed by Justice Aqeel Ahmed Abbasi directed the national carrier to file para wise comments on the next date of hearing. The court adjourned the matter for third week of April 2017.
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Earlier, counsel for the applicant stated in its income tax reference application that a show cause notice was issued to the taxpayer in respect of federal excise duty on excess baggage ticket (EBT). However, being aggrieved, taxpayer approached the commissioner Inland Revenue Appeals-III Karachi and filed an appeal which was decided in favour of Customs Department and rejected the appeal of the registered person.
According to the applicant, being aggrieved, taxpayer approached the appellate tribunal and challenging the judgment of the commissioner Inland Revenue Appeals-III Karachi, however, appellate tribunal allowed the appeals decided the case in the favour of taxpayer without mentioning any lawful reason.
Citing Pakistan International Airlines Corporation (PIA) as respondent, applicant pleaded the court to declare that order of the appellate tribunal as illegal, mala fide and arbitrary, counsel further pleaded the court to set aside impugned judgment of the appellate tribunal and restore its order.
