ISLAMABAD: A single bench of the Islamabad High Court (IHC) will hear OMV (Pakistan) Exploring GMBH’s tax reference on Wednesday (today), seeking to restrict the Large Taxpayers’ Unit from recovering outstanding tax of Rs 218,501,339. The single bench comprising Justice Aamer Farooq will hear the case.
OMV (Pakistan) Exploring GMBH had filed the case against the Large Tax Payers Unit, Islamabad. Deputy Commissioner Inland Revenue Audit and Commissioner Inland Revenue Appeals were made respondents in the case.
Through the petition, the appellant had complained against Deputy Commissioner Inland Revenue that he had issued an assessment, dated, May 3, 2016 which is illegal and unjust.
In the order the Deputy Commissioner Inland Revenue made an assessment of recoverable outstanding tax amounting to Rs218,501,339. LTU had issued the show cause notice to OMV (Pakistan) Exploring GMBH under provisions of Federal Excise Duty Act, 2005 and Sales Tax Act, 1990.
Through the order and preceding show cause notice the company was informed about a number of discrepancies in tax payments made by OMV (Pakistan) Exploring GMBH.
According to details, the show cause notice issued highlighted discrepancies that OMV (Pakistan) Exploring GMBH had not paid Rs 452,302,253 in head of federal excise duty and Rs 636,222,422 in head of sales tax.
With these findings the OMV (Pakistan) Exploring GMBH was issued the impugned assessment order by the deputy commissioner Inland Revenue for recovering the tax calculated.
The appellant had challenged LTU show case notice revealing that company had made non-payments in head of FED and sales tax. It says that show-cause notice was issued with malafide intentions and resultantly coercive measure of recovery of sales tax and federal excise duty were started which must be stopped.
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.
