ISLAMABAD: The Islamabad High Court (IHC) on Monday adjourned the hearing of a tax matter filed by M/s Orient Petroleum (Private) Limited till September 19.
M/S Orient Petroleum had filed the petition challenging a tax recovery notice against alleged evasion of Rs 4.945 billion and Rs 59.040 million under the heads of sales tax and federal excise duty, respectively. The Large Taxpayers Unit (LTU) Inland Revenue (IR) deputy commissioner in Islamabad had issued the notice to M/S Orient Petroleum.
IHC single bench comprising Justice Aamer Farooq adjourned the hearing. The bench would resume hearing of the case in September.
M/S Orient Petroleum filed the case seeking restrictions for LTU about recovering outstanding tax. The appellant had also sought from court to nullify the LTU order carrying the claim of taxes.
The appellant had challenged an LTU order, dated May 30, 2016 before the IHC after exhausting the departmental platform for appealing disputing orders. The department had issued the order under provisions of Sales tax Act, 1990 and Federal Excise Duty Act, 2005 for the tax year 2011-12.
Federal Board of Revenue (FBR), officers of LTU including IR commissioner, deputy commissioner and IR Appeals commissioner were made respondent in the case.
The appellant had prayed the court to direct the LTU not to recover the said amount and abstain from any coercive action in this regard.
The appellant submitted before the court that the impugned order was issued under mala fide intentions and had no legal standing or authority and the court may decide on relief which it deemed appropriate in this regard. It also stated that due legal course was not followed by the department in issuing the order.
The petitioner also asked the court may kindly suspend the notice till the decision of appeal pending before the LTU.
