KARACHI: The Sindh High Court (SHC) has issued notices to the Customs Department and deputy attorney on a constitutional petition filed by M/s Century Engineering Industries (Private) Limited, seeking restraining order against attachment of its bank accounts for recovery of sales tax.
While the hearing of the petition, a two-member bench, headed by Justice Munib Akhtar, also directed them to file their respective para wise comments on the next date of hearing.
Earlier, counsel for the petitioner stated that it is engaged in the lawful business of manufacturing of automotive batteries under the brand name of “Phoenix”. He argued that for the period of from July 2015 to June 2016, the petitioner was selected for audit under section 25 of sales tax act by respondents.
He stated that after conducting audit, the respondents issued show cause notice to the petitioner and allegation was fixed that the petitioner was involved in sales tax evasion. He also stated that the respondents also demanded him to pay Rs 5.59 million under the head of evaded sales tax and penalty.
The counsel argued that if, the amounts of the petitioner are attached and / or any coercive action is taken by the respondents its business shall come to stand still and the petitioner will become defunct.
Citing Chairman Federal Board of Revenue, Secretary Revenue Division, the Commissioner Inland Revenue E&C Unit-02, Zone-I LTU, Karachi and others as respondents, petitioner pleaded the court to declare the act of the respondents as illegal, mala fide and arbitrary.
He also pleaded the court may restrain them from taking any coercive action against the petitioner including attachment of its bank accounts till final order in this petition.
