KARACHI: Lucky Electric Power Company has moved the Sindh High Court (SHC), challenging an impugned show cause notice for recovery of Rs 41,256,751 for the tax year 2016 issued by the deputy commissioner Inland Revenue Enforcement and Collection Unit-II Zone-IV, Corporate Regional Tax Office.
In its constitutional petition, counsel for the petitioner stated that it is established, constructed, managed and maintained thermal and coal fired power plants and also carried on the business of generation, transmitting, purchasing, importing, transforming, distributing, supplying and dealing in electricity and all other forms of energy. He submitted that the Ministry of Water and Power issued a letter of support (LOC) on June 8, 2015 to the petitioner to establish 660 MW (gross) imported coal based independent power project at Port Qasim, Karachi and National Electric Power Regulatory Authority (NEPRA) also issued general license to the petitioner.
Counsel informed the court that now the petitioner has started the construction of the power project. However, the deputy commissioner Inland Revenue Enforcement and Collection Unit-II Zone-IV, Corporate Regional Tax Office issued a show cause notice under section 161 (IA) of the ordinance 2001, for the tax year 2016 for recovery of tax, including default surcharges amounting of Rs 41,256,751 which is otherwise neither payable nor due to the petitioner under the ordinance 2001.
Citing Secretary Revenue Division, chief commissioner Inland Revenue Corporate Regional Tax Office, the commissioner Inland Revenue Zone-IV, Corporate Regional Tax Office and deputy commissioner Inland Revenue Enforcement & Collection Unit-II Zone-IV, Corporate Regional Tax Office as respondents, the petitioner pleaded the court to declare the act of the respondents as illegal, mala fide and arbitrary.
It also pleaded the court to set aside the impugned show cause notice and restrain them form taking any coercive action against the petitioner till final decision of this petition.
