ISLAMABAD: A single bench of the Islamabad High Court (LHC) will hear a tax complaint on Tuesday (today) filed by M/s SAZ Enterprises, challenging a tax recovery claim made by the Regional Tax Office (RTO), field office of the Federal Board of Revenue (FBR)).
A bench of the IHC, comprising Justice Aamer Farooq, will hear the tax reference seeking court’s directives to restrict RTO from recovering Rs 135,000,000 from the appellant under head of sales tax for a period from July 2015 to May 2016.
M/s SAZ Enterprises’ appeal was pending before the commissioner Inland Revenue (appeals), Regional Tax Office (RTO), Islamabad, the petitioner mentioned.
M/s SAZ Enterprises had named chief commissioner Inland Revenue, RTO, assistant commission Inland Revenue Withholding, RTO, commissioner Inland Revenue (Appeals), RTO, and Federal of Pakistan through the chairman of Federal Board of Revenue (FBR) as respondent in the case.
M/s SAZ Enterprises had challenged a show cause notice dated August 03, 2016 issued by the Assistant Commissioner Inland Revenue had issued the notice under sections of Sales Tax Act, 1990.
An amount of Rs 135,000,000 was claimed as recoverable from M/s SAZ Enterprises through the notice. The petitioner had prayed the court restrict the department from taking any coercive action for realizing the recovery of said amount from the appellant.
M/s SAZ Enterprises prayed the court operation of the impugned order issued by the tax authority may kindly be suspended till the decision of appeal pending before the RTO.
M/s SAZ Enterprises 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.
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.
