KARACHI: The Fauji Fertilizer Company Limited moved the Sindh High Court (SHC) challenging the collection of sales tax on imports of the petitioner twice; firstly under Section 3 (1) of the act and secondary under Section 58 (b) of the Special Procedure Rules @ 3% of the value addition.
In his constitutional petition, the counsel for the petitioner stated that it is one of the largest commercial importers of the fertilizer and contributes a huge money to the national exchequer in respect of duties, taxes and sales tax. However officials of the tax department are charging sales tax on imports from the petitioner twice under sections as mentioned above.
He submitted that the total value addition of sales tax paid by the petitioner at import stage for the tax periods 01/07/2016 to 30/06/2017 is Rs331million. He, inter-alia, challenges the charge of the sale tax twice under article 199 of the constitution of Islamic Republic of Pakistan-1973.
Citing to Secretary Ministry of Finance, Chairman Federal Board of Revenue, Model Customs Collectorate KEWB, Imports East Bulk, Model Customs Collectorate East, Model Customs Collectorate West and others, he pleaded with the court to kindly declare the act of the respondents illegal, mala fide and arbitrary. The court may also declare that the arbitrary interpretation to the provisions of section 3 (I) of the Sales Tax Act-1990 and chapter X of the Sales Tax Special Procedure Rules 2007 are unconstitutional, without jurisdiction, illegal and having no legal effect.
He also pleaded with the court to kindly restrain them from taking any coercive action against the petitioner.
