KARACHI: The Sindh High Court (SHC) has sought comments from the tax authorities and deputy attorney general on a constitutional petition filed by Port Qsim Authority against impugned show cause notice for recovery of Rs 4.66 million issued by deputy commissioner Inland Revenue E&U Unit-1 Zone-IIII, Large Taxpayer Unit. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition.
Earlier, counsel for the petitioner stated that deputy commissioner Inland Revenue E & U Unit-1 Zone-III, Large Taxpayer Unit issued the show cause notice in respect of tax on an advertisement. He alleged that the respondent has unlawfully held the petitioner in default for non-deduction of sales tax on advertisement services. He added that sales tax on advertisement was beyond the powers at the federation as it did not involve supply of goods.
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Citing deputy commissioner Inland Revenue E & U Unit-1 Zone-III Large Taxpayer Unit, chairman Federal Board of Revenue, Secretary Ministry of Finance, chairman Sindh Revenue Board and Secretary Ministry of Finance, Sindh as respondents, the petitioner pleaded the court may declare that act of the respondent is illegal, unlawful and arbitrary.
Port Qasim Authority also pleaded the court to set aside impugned show cause notice and restrain them from taking any coercive action against it till final decision of this petition.
