ISLAMABAD: The Islamabad High Court disposed of a petition filed by M/s SAZ Enterprises challenging a tax recovery claim amounting to Rs 135 million made by Islamabad Regional Tax Office (RTO).
A bench, comprising Justice Aamer Farooq, heard the tax reference and issued seven-day deadline for the RTO to hear and decide M/s SAZ Enterprises’ application pending with the RTO.
The bench also restricted the RTO from recovering Rs 135,000,000, outstanding tax amount from M/s SAZ Enterprises. The appeal was pending before the Inland Revenue (appeals) commissioner, the petitioner mentioned.
The company had made RTO chief commissioner, IR assistant commissioner, IR (appeals) commissioner and Federal Board of Revenue (FBR) chairman respondents in the case.
It had challenged a show cause notice dated August 03, 2016 issued by the assistant commissioner under sections of Sales Tax Act, 1990 for recovery of Rs 135,000,000.
The petitioner had prayed the court to restrict the department from taking any coercive action for realising the recovery of said amount from the appellant and suspend the notice until the decision of appeals.
M/S SAZ Enterprises submitted with 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 appellant had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication did not addressed grievances of the appellant too.
