KARACHI: The Sindh High Court (SHC) directed the tax authorities to file their respective para-wise comments on a constitution petition filed by Shaikh M Ishtiaq against imposition of 3 percent additional sales tax amounting to Rs 445,745 on the consignment of “deformed steel bars and iron rods”.
A two-member bench, comprising Justice Munib Akhter and Justice Anwar Hussain heard the constitution petition.
Earlier, petitioner’s counsel stated that his client being manufacture imported deformed steel bars and iron rods from different parts of the world for its in-house consumption. The petitioner did not sell any of the bars imported in the same condition, he added.
According to the petitioner, he also bent the bars into assorted shapes and processed the bars before selling and they fell in the definition/category of manufactured only as the same are not sold in the original imported condition of purchase.
He further argued that, he imported the consignment of deformed steel bars of grade -500 B ( 157 – Bundles ) ,however, respondents in violation of aforesaid SRO 525 ( 1 ) / 2008 has charged additional sale tax 3 percent amounting to Rs 445,745.
Citing Federal Board of Revenue (FBR) chairman, Customs Appraisement chief collector, Customs Appraisement-East collector and deputy collector as respondents, the petitioner pleaded the SHC may direct the respondents to refund to the petitioner amount charged as 3 percent additional sales tax.
The petitioner also pleaded the court may declare that the petitioner is genuine manufacture and as such neither the 3 percent additional sales tax can be claimed/charged nor the petitioner is liable to pay the same.
