KARACHI: The Supreme Court directed counsel for Federal Board of Revenue (FBR) to file comprehensive comments on a civil petition for leave to appeal filed by the Commissioner IR Zone-II, Large Taxpayer Unit Karachi against M/s Attock Cement Pakistan Ltd for recovery of sales tax.
On April 2, 2019, a two-member bench, comprising Justice Maqbool Baqar and Justice Sajjad Ali Shah heard the matter.
During the hearing, counsel for the applicant stated that the above-mentioned taxpayer is manufacturing cement and filed two separate refund claims on June 12, 1997, a refund claim of Rs16,360, 572 being the amount of input tax involved in the purchase of new cement grinding mill machinery for the month of May and June 1996.
He further argued that another refund claim filed of Rs5,055,922 of input tax, involved in the purchase of spare parts of the existing cement manufacturing machinery for the period from July 1996 to February 1997.
He submitted that assistant collector, sales tax rejected aforesaid refund claim of said taxpayer, and however, collector appeals-II Western Zone Karachi allows its appeal and High Court of Balochistan Quetta also maintained the said order.
Citing M/s Attock Cement Pakistan Ltd as respondent, counsel for the applicant pleaded the court to grant leave to appeal against the order dated Aug 20, 2018 passed by the learned division bench of the High Court of Balochistan in Sales Tax Appeal No 01 of 2005.
