KARACHI:M/s Sultan Enterprises has approached the Sindh High Court (SHC) and filed a constitutional petition challenging show cause notice and order-in-original penalizing the petitioner amounting to Rs 100,000 along with short recovery of Rs1,800,750 on account of duties and taxes.
On February 17, 2021, during the hearing, counsel for the petitioner stated that as reported by the MCC Port Muhammad Bin Qasim, Karachi, that it was observed during post release verification exercise that above mentioned importer has imported 4 consignments of garments accessories plastic articles and got the same cleared availing under exemption from sales tax @17% additional sales tax @3% and advance income tax @6% vide SRO 1125(I) 2011, resulting into short realization of government revenue to the tune of Rs1,800,750 whereas the benefit of the aforesaid SRO available only to the items “Sequin” falling under PCT 3926.9099 of SRO and goods was declaration was examined and shipment was allowed.
He further argued that a show cause notice was issued to the petitioner and alleged for mis-declaration and in order-in-original No 426/2018-19 was issued on dated Nov 26, 2018 in which petitioner was penalized illegally for amounting to Rs100,000 along with short recovery of Rs1,800,750 on account of duties and taxes which was passed in violation of principle of natural justice.
He further submitted that impugned order of the respondents is based on an action which is without lawful authority due to reason MCC PMBQ is not an appropriate authority to issue notice after release of consignments, so all the subsequent action based that has no legal value as laid down by the Supreme Court of Pakistan in identical case of Ms. Mansab Ali vs Amir Ali.
Citing Assistant Collector of Customs Group-IV, Collector of Customs MCC PMBQ, Collector of Customs Adjudication-I and Chairman FBR as respondents, petitioner pleaded the court to declare that impugned notice is clear violation of constitution of Islamic Republic of Pakistan, 1973 and may please direct them not to take any coercive action of the basis of the demand notice.
