KARACHI: The Sindh High Court on Friday restrained the tax authorities from taking any coercive action or making any demand from M/S Al-Rahman Cotton Ginning Pressing Factory and Oil Mills.
The SHC single-judge comprising justice Munib Akhter also issued notices to Revenue secretary, Inland Revenue chief commissioner and deputy commissioner directing them to submit their comments on next hearing.
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Earlier counsel for the petitioner stated that petitioner is a registered person with the federal government for income tax, sales tax. It was running a business of ginned cotton and oil mills, which is seasoned activity and manufacturing cotton tint, cotton seed and paying taxes properly.
However FBR has issued notice to the company under SRO NO 188 (1) 2015 dated March 5, 2015 requiring the petitioner to pay the amount of Rs 6 per 40 kilogram on all in-house and outside supplying with effect from July 1, 2014 to onward without any input tax adjustment.
The counsel for petitioner said that his client was exempted from taxes; therefore court was requested to restrain the respondents and their officers from taking any adverse action in any whatsoever until final verdict of this court.
