ISLAMABAD: The Islamabad High Court has disposed of a case filed by M/s Muhammadi Gas Company (Private) Limited and directed the Federal Board of Revenue (FBR) to decide the appellant’s appeal within 30 days. The petitioner had challlenged recovery notice of Rs 1,575,500.
The IHC single bench comprising Justice Aamer Farooq heard the case and issued directives to the Regional Tax Office, Islamabad. The court also directed the FBR’s field office i.e. RTO to submit compliance report immediately after expiration of deadline.
Meanwhile, the court also directed the RTO to abstain from realizing recovery of department’s claimed outstanding tax amount of Rs1,575,500 till decision over appellant’s appeal pending before the department.
M/s Muhammadi Gas Company Private Limited had filed the case seeking restrictions for RTO about recovering outstanding tax amount of Rs 1,575,500.
M/s Muhammadi Gas Company Private Limited had challenged a RTO order, dated July 7, 2016 before the IHC. The department had issued the order under provisions of Sales Tax Act, 1990 for the tax year 2012-13.
Federal Board of Revenue (FBR), officers of RTO including Commissioner Inland Revenue, Additional Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) were made respondent in the case.
The appellant had 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.
