KARACHI: The Sindh High Court (SHC) has directed the tax authorities not to pass final orders or make adjudication against M/s DG Khan Cement Company Limited without the permission of the this court.
The court ordered this on a constitutional petition filed by the petitioner, seeking exemption under 5th schedule of Customs Act, 6th schedule of the sales tax act, and 2nd schedule of the Income Tax Ordinance.
While the hearing of the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also directed the petitioner to file a reply of the show cause notice before authority concern.
Earlier, counsel for the petitioner stated that it is amongst largest cement manufacturer of Pakistan with a production capacity of 14,000 tons per day and imports various items LED panel light, tube light, flood light with fixtures etc and availed exemption as entitled under 5th schedule of the customs act, 1969, 6th Schedule of the Sales Tax Act, 1990 and 2nd Schedule of the Income Tax Ordinance 2001.
According to the counsel, however, officials of the customs authorities alleging therein that since the goods imported by it operate on alternating current (AC) voltage, rather than, on direct current (DC) which is used/ and operates in the renewable energy technologies, therefore, the concessions and the claimed notified items are not available to the subject imports.
Citing Secretary Revenue Division, Collector of Customs Appraisement West, Director Port Clearance Audit, Collector (Adjudication-I) and others as respondents, counsel pleaded the court may direct tax authorities to issue exemption from customs duty, income taxes etc on above mentioned reference.
