ISLAMABAD: The Islamabad High Court (IHC) disposed of a case with direction to the Large Taxpayers Unit to decide the stay application pertaining to the recovery of outstanding tax amounting Rs 5,510,355 within seven days.
A single bench of the IHC comprising Justice Aamer Farooq was hearing the case filed by M/s Mat Cast (Private) Limited, seeking the court’s directives to restrict the Federal Board of Revenue from recovering the outstanding tax amount of Rs 5,510,355 under the head of supplies to un-registered persons.
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Justice Aamer Farooq also restricted the Large Taxpayers Unit, Islamabad from recovering the said amount from M/s Mat Cast Private Limited stating that ” no coercive measures aiming at recovering the outstanding tax amount shall be adopted against the petitioner”.
Justice Aamer Farooq also directed the Commissioner Inland Revenue, Large Taxpayers Unit, Islamabad to “decide the pending stay application and/or petition of the petitioner within a period of seven days”.
The appellant had filed the case against officers of Large Taxpayers Unit, Islamabad. Commissioner Inland Revenue, commissioner Inland Revenue Appeals, deputy commissioner Inland Revenue Audit, assistant commissioner Inland Revenue Appeals and Appellate Tribunal Inland Revenue were made respondent in the cases filed in couple of months ago before the Islamabad High Court.
Through the petition, the appellant had challenged the show cause notice and order issued by deputy ommissioner Inland Revenue Audit on May 30, 2016.
The appellant had stated before the court that deputy commissioner had issued the order regarding tax assessment and recovery without legal grounds. He had prayed the court that the order must be declared illegal, without lawful grounds and in violation of provisions of Sales Tax Act, 1990.
Deputy Commissioner Inland Revenue had issued the letter for tax year July 2013-June 2014 to June 2014- July 2015.
The petitioner had prayed the court operation of the impugned order issued by the Deputy Commissioner Inland Revenue may kindly be suspended till the decision of appeal pending before the commissioner appeals.
In view of the circumstances mentioned above, the court heard arguments of sides and decided that the case should be heard and decided by the departmental forum first.
The court also directed the counsel from LTU that it must submit compliance report to the administration of Islamabad High Court immediately after completion of deadline granted to the LTU for deciding the matter.
