ISLAMABAD: Pak Hy Oils Limited approached the Sindh High Court (SHC), challenging recovery notice amounting to Rs1,764,544 issued by Deputy Commissioner Inland Revenue E&C Unit-II, Zone-III, Large Taxpayers Unit-II Karachi.
Counsel for the petitioner stated in its constitutional petition that petitioner is a private limited company and engaged in lawful business of manufacturing and supplying of refined petroleum and having STRN.
He argued that his counsel never involved in any tax evasion case, however, deputy commissioner Inland Revenue E&C Unit-II, Zone-III, Large Taxpayers Unit-II Karachi passed an order dated 27/03/2017 under section 11 (2) of the Sales Tax Act 1990 against petitioner and creating the demand of Rs1,764,544 without lawful authority.
According to counsel, being aggrieved, petitioner moved to appellate forum and filed an appeal along with stay application which is still pending for disposal. However during the pendency of such appeal, petitioner has apprehension of coercive action from respondents.
Citing secretary Revenue Division, commissioner Inland Revenue Appeals-IV, commissioner Inland Revenue E&C Unit-II, Zone-III Large Taxpayers Unit-II and deputy commissioner Inland Revenue E&C Unit-II, Zone-III, Large Taxpayers Unit-II Karachi as respondents, petitioner pleaded the court may restrain the tax department from taking any coercive action against it.