KARACHI: M/s Shirazi Trading Private Limited has approached the Sindh High Court (SHC) and filed several constitutional petitions against show cause notices as to why customs duty, sales tax, and income tax may not be recovered in relation to spark plugs imported by the petitioner for two wheelers.
On 2 July 2021, counsel for the petitioner stated that through this petition, the petitioner challenges the show cause notice dated June 15, 2021 issued by the Collector of Customs Adjudication based on contravention report and has directed the petitioner to show cause as to why customs duty, sales tax, and income tax may not be recovered in relation to spark plugs imported by the petitioner for two wheelers.
He further informed the court that the impugned notice is illegal as the respondent does not have any jurisdiction to assess income tax or sales tax.
He argued that the impugned notice is further illegal as the customs officials have sought to assess the value of the spark plugs imported by the petitioner in violation of section 25 of the customs act, 1969.
Citing chairman FBR, Member Inland Revenue-Policy, Member Inland Revenue Operations, Collector of Customs Adjudication-I, Collector of Customs Appraisement West, Commissioner IR Audit-III as respondents, petitioner pleaded the court to declare that the impugned notice has been issued without lawful authority and is of no legal effect.
He further pleaded the court to suspend the impugned notice during the pendency of this constitutional petition and prohibit them from taking any adverse action against the petitioner on the basis of the impugned notice dated June 15, 2021 and grant such other relief as may be deemed necessary in the circumstances of the case.
