LAHORE: The Lahore High Court (LHC) has summoned the Inland Revenue (IR) deputy commissioner on October 27 on violation of court orders restricting the Federal Board of Revenue (FBR) from collection of sales tax from companies without getting them registered.
According to details, Justice Shahid Jameel heard a case filed by Shahzad Steel, in which the counsel for the appellant Mohsin Virk argued that the Lahore High Court had issued a stay order, forbidding the authorities concerned from collecting sales tax from unregistered companies.
He added that the Federal Board of Revenue had been sending sales tax notices to the companies despite the court orders, which amounted to violating the law. The revenue board had made pay orders from bank accounts of companies and now the authorities were going to cash them, he informed the high court.
He appealed before the court, asking it to stop the FBR authorities from collecting tax from unregistered companies. He also prayed the court to take action against the Inland Revenue deputy commissioner.
After hearing the case, the Lahore High Court restrained the FBR from cashing the pay orders, and also summoned the deputy commissioner concerned. The court also extended the date of the stay order.
