KARACHI: A division bench of the Sindh High Court (SHC) directed customs officials to make sure filing their para wise comments on next date of hearing on a constitutional petition filed by Zahid Fida Paracha sole proprietor of M/s Continental Tea challenging STGO 103/2019 and STGO 104/2019, enhancement of duty and taxes on import of raw/ unblended tea.
On 19 February 2021, during the hearing, counsel for the petitioner stated petitioner is running his business of import, manufacturing and sale of tea and the raw/ unblended tea that the petitioner imports does not come in sellable form or retail packaging, the raw/ unblended tea typically comes in large packages of 60-62 kg each, after clearance form Port, the petitioner carries out manufacturing activity as defined under the sales tax act, 2011, which inter alia includes blending, processing and packaging in retails sellable packs which are sold primarily in province of Sindh and the manufacturing facility of the petitioner is located at Karachi.
He further informed the court that petitioner, being aggrieved by the directions issued by Chairman FBR, and Secretary (ST&FE Policy) vide STGO 103/2019 and STGO 104/2019, to charge sales tax on retail price which shall not be less than 130% of the assessed customs value increased by assessed customs duties, excise duty and other applicable taxes and charges excluding sales tax.
He further pleaded the court to declare that the STGO 103/2019 and STFO 104/2019 are unlawful and ultra vires the act and also declare that STGO 103/ 2019 is not applicable to the imports or raw material made by the petitioner who is a manufacturer of tea in view of section 3(2)(a) read with section 2(27) of the act.
