KARACHI: The Sindh High Court (SHC) has restrained tax authorities from taking any coercive action against a petitioner, M/s Tariq Auto Traders, challenging extra tax under rules 58-S and 58-T of the rules as amended vide SRO 896 (I)/ 2013 read with sales tax general order.
While the hearing the constitutional petition, a two-member bench headed by Justice Aqeel Ahmed Abbasi also issued notices to the tax authorities and deputy attorney general, directing them to file their respective para wise comments on the next date of hearing. The court also adjourned the hearing for May 5, 2017.
During the hearing, counsel for the petitioner stated that the petitioner is engaged in import of motorcycle spare parts and accessories and is registered with the tax department under the category of importer.
According to the petitioner, Federal Board of Revenue (FBR) amended vide SRO 896 (I)/2013 dated Oct, 04, 2017, wherein chapter XII of the rules, more specifically identified as rules nos 58S and 58T have been amended to charge extra tax @ 2% on supplying of specified goods, made by the manufacture and importer.
He argued that vide general order no 27 of 2014 dated March 18, 2014 specified goods have been excluded from the levy of extra sales tax on the supplies under made by manufacture of such specified goods, however, tax authorities have issued notice to the petitioner for payment of tax under rules 58S and 58T of the rules as amended vide SRO 896 (I)/ 2013 read with sales tax general order 27/2014.
Citing Secretary Revenue Division, assistant commissioner Inland Revenue C&P Cell Zone-IV, RTO-II Karachi as respondents, counsel pleaded the court may declare that such demand is illegal, mala fide and arbitrary, he also pleaded the court may restrain them from taking any coercive measures against the petitioner till final order of this petition.
