KARACHI: A two-member bench of the Sindh High Court (SHC), comprising Justice Irfan Sadat khan and Justice Mehmood A Khan has restored sales tax registration of petitioner on a constitutional petition filed by M/s Atee & Co.
On 19 May 2022 during the hearing, Arshad Hussain Shahzad advocate for the petitioner, Imran Ali Mithani Advocate for the department, Kafeel Ahmed Abbasi, Deputy Attorney General of Pakistan appeared before the court.
Court observed in its order that “on the previous date of hearing, the counsel appearing for the petitioner stated that instant petition is squarely covered by the decision given in CP 376/ 2018, which has been endorsed by the counsel for the department.
We therefore dispose of instant petition in the same manner and method as decided in the above referred petition in the following manner,
“7. It is for these reasons we, through our order dated 12.09.2019 allowed these petitions in the following terms;
I, rules 12(a)(i) of the sales tax rules, 2006, to the extent it gives authority to the commissioner to suspend the sales tax registration of a registered person “without prior notice” is hereby declared to be ultra vires to the constitution, violation of principles of natural justice and in excess of authority vested under section 21(2) of the sales tax act, 1990;
All the order(s) of suspension of sales tax registration wherein, show cause notice(s) under section 21(2) has not been issued within seven days therefrom, and /or no order of blacklisting has been passed within ninety days of issuance of the notice of hearing.
The suspension of sales tax registration becomes void-ab-initio accordingly their sales tax registration stands restored”.
