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Home Breaking News

SHC issues notices to customs officials on petition filed by M/s International Steels Limited against SCN

byM.B. Rana
31/12/2020
in Breaking News, Karachi, Latest News
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KARACHI: A division bench of The Sindh High Court (SHC) directed customs officials to file their respective para wise comments on a constitutional petition filed by International Steels Limited against show cause notice issued by Collector of Customs Adjudication.

On December 30, 2020, during the hearing, counsel for the petitioner stated that petitioner is a public limited company incorporated in Pakistan under the companies ordinance, 1984 and it is the largest flat steel manufacturer and exporter in Pakistan.

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He submitted that through this petition, the petitioner challenges the show cause notice dated Dec 10, 2020 issued by Collector of Customs Adjudication, through the impugned notice, respondent has relied upon a contravention report prepared by Directorate of Post Clearance Audit (South) Karachi to allege that the petitioner has made supplies of hot rolled coils for manufacture of cold-rolled coils and galvanized iron coils in violation of the regulatory regime introduced by Secretary Finance.

He further stated that based on such allegations, respondents have sought to recover customs duty, sales tax and income tax from petitioner, the impugned show cause notice is illegal as the allegations are based entirely on a misreading of the regulatory regime in relation to import of HRC. The impugned notice is illegal also as the respondent does not have any jurisdiction to make assessments of income tax and/ or sales tax.

Citing Chairman FBR, Collector of Customs Adjudication, Directorate of Post Clearance Audit, Commissioner Inland Revenue Audit-I, Large Taxpayers Office as respondents, petitioner pleaded the court may declare that act of the respondents is illegal, mala fide and arbitrary.

He further pleaded the court may set aside impugned show cause notice and restrain them from taking any adverse action against the petitioner till final order in this petition.

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