ISLAMABAD: Justice Aamer Farooq of the Islamabad High Court (IHC) has directed the Appellate Tribunal Inland Revenue (ATIR) and the Commissioner Inland Revenue (Appeals) of the Large Taxpayers Unit to decide the appeal filed by M/s Nayatel (Private) Limited within 60 days.
The IHC judge issued these directives while concluding the hearing of tax reference in which the appellant had challenged the demand, dated-February 17, 2015, of Rs 17.8 million for the tax year 2011-12 under section 7 of the Federal Excise Duty Act, 2005 and provisions of the Sales Tax Act, 1990. The Additional Commissioner Inland Revenue had issued the order.
Challenging the order, the appellant had submitted before the court that the LTU, Islamabad’s officer had issued the order in violation of Rule 60 of Federal Excise Duty Act, 2005.
The appellant complained that amount was recovered prior to the expiry of 30 days provisional limit of issuing the order. Hence, the appellant was deprived of provisional time of 30 days granted to him according to Rule 71 of the Sales Tax Rule, 2006.
Creating demand for Rs 17.8 million, the Additional Commissioner Inland Revenue recovered the dues earlier than the expiry of the provisional 30 days limit on March 17, 2016. The appellant had pleaded that under Rule 60 of the FED Rules, 2005, the appellant should have been given the 30 days to respond.
On the day of the case’s disposal, the court also directed the LTU’s Commissioner Inland Revenue to decide the fate of the application filed by the appellant before him within 60 days.
The court also directed LTU’s Commissioner Inland Revenue to restrain from effecting further recovery of outstanding amount till decision over the plea filed in the department. The Federal Board of Revenue and the LUT’s chief commissioner were also made respondents in the case.
