KARACHI: The Sindh High Court (SHC) has issued notices to the tax authorities and deputy attorney general on a constitutional petition filed by M/s Rauf Qasim Textile (Private) Limited seeking zero-rated sales tax on electricity under SRO 1125 (1)/2011 dated 31/12/2011.
While the hearing of the petition, a two-member bench headed by Justice Aqeel Ahmed Abbasi also directed them to file their comments on the next date of hearing.
Earlier, counsel for the petitioner stated that it is engaged in the business of manufacturing of textile products and manufacturing and supplying of the zero-rated products of textile and read section 4 of the Sales Tax Act 1990 read with SRO 1125(1)/2011 dated 31/12/2011 paid sales tax on electricity on the manufacturing of the said products.
According to the petitioner, the Federal Board of Revenue (FBR) has granted zero-rated facility to the other persons, who are engaged in the manufacturing of the said products, but the same was not granted to the petitioner.
Citing chairman Federal Board of Revenue as respondent, petitioner pleaded the court may grants interim order for not charging of sales tax on electricity bills.
