ISLAMABAD: The Islamabad High Court (IHC) has disposed of a case filed by M/s Cider Foods (Private) Limited with directions to the Appellate Tribunal Inland Revenue (ATIR) to decide the matter within seven days.
The company had challenged the recovery notice of Rs 14,116,426 issued by the Federal Board of Revenue. A single bench of the IHC comprising Justice Aamer Farooq heard the case and issued directives to the ATIR, Islamabad. The court also directed the FBR’s field office i.e. LTU to submit a compliance report immediately after expiration of the deadline.
Meanwhile, the court also directed the LTU to abstain from realizing recovery of department’s claimed outstanding tax amount till decision over appellant’s appeal pending before the department.
M/s Cider Foods Private Limited had filed the case seeking restrictions for Large Taxpayers Unit, Islamabad about recovering outstanding tax amount of Rs14,116,426. The appellant had also sought from court to nullify the LTU order carrying the claim about outstanding tax amount.
The appellant had challenged an LTU order, dated January 1, 2016 before the IHC. The department had issued the order under provisions of Sales Tax Act, 1990 for the tax period from August 2011 to October 2014.
ATIR, Federal Board of Revenue (FBR), officers of LTU including commissioner Inland Revenue, additional commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) were made respondent in the case.
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. Hence, the order may be declared null and void, the petitioner stated.
