ISLAMABAD: Hearing a case filed by OMV (Pakistan) Exploration GMBH, the Islamabad High Court (IHC) on Thursday suspended the order issued by Large Taxpayers’ Unit seeking recovery of outstanding tax amount of Rs 452,302,253 under the head of federal excise duty and of Rs 636,222,422 under the head of sales tax.
A single bench of the IHC comprising Justice Aamer Farooq heard the case and granted the stay to the OMV (Pakistan) Exploration GMBH. The company is engaged in oil and gas exploration, productions and sale in Pakistan. The bench adjourned the hearing of the case until June 29 and restricted the Large Taxpayers Unit form taking any coercive action the company with regard to the recovery of the outstanding dues.
Advocate Hyder Ali Khan represented the company at the IHC and argued that show cause notice issued, dated June 3, 2016, to his client was wholly opposing and violating the Sales Tax Act, 1990, Federal Excise Duty Act, 2005 and provisions of Constitution of Pakistan.
The counsel submitted that the issuing such show cause notice to the company was result of LTU officers malafide and ultra-vires actions.
He prayed the court to grant stay against the impugned show cause notice and prohibit the Large Taxpayers’ Unit from taking the adverse actions upon the basis of notice.
The appellant had also prayed the court to provide/grant such other relief as may be deemed necessary in the circumstances of the case along with grant of the petition.
After hearing the arguments, the bench granted the stay to the appellant and restricted the LTU from taking further actions upon the impugned show cause notice till the court decides the fate of the matter.
