KARACHI: Sindh High Court (SHC) issued notices to the tax department and deputy attorney general and directed them to file their para-wise comments on a constitutional petition filed by M/s Muhammad Farooq Sattar Industries against the levy of further Sales Tax on zero rated supplies.
A two-member bench, headed by Justice Aqeel Ahmed Abbasi, heard the petition.
Earlier, counsel for petitioner stated that it is engaged in a lawful business of manufacturing and supply of textile goods and all along it has richly contributed to the national exchequer by way of payment of direct and indirect taxes.
Counsel submitted that officials of the tax authorities issued a show cause notice to it for levy and collection of further Sales Tax on zero rated supplies which through Section 3 (IA) of the Sales Tax Act-1990, the levy of further Sales Tax on zero rated supplies is illegal and does not have any legal effect more importantly after the clarification of the board.
Citing to Secretary, Ministry of Law, Chairman Federal Board of Revenue, Commissioner Inland Revenue Zone-I, Regional Tax Office-III, Deputy Commissioner Inland Revenue Unit-II, Zone-I, Regional Tax Office-III as respondents, he pleaded with the court to kindly set aside the impugned notice and restrain the tax department from taking any coercive measures.
