KARACHI: The Sindh High Court (SHC) issued notices to customs and appellate tribunal, Karachi on an appeal filed by M/s Pakistan Mobile Communication Ltd against the impugned demand notice of Rs 98.208 million.
While hearing the appeal, a two-member bench, comprising Justice Irfan Sadat Khan and Justice Muhammad Humayun Khan also directed them to file their respective comments on December 12, 2016.
Earlier, counsel for the applicant stated in its appeal that its company had imported consignments of power tech generation sets from Lebanon and Egypt between the periods of June 01, 2005 to May 28, 2006 and claimed exemption of custom duty in excess of 5 percent and whole of the sales tax under concessionary notification SRO 575 (1)/2005 dated June 06, 2005.
According to the applicant, however, staff of the tax department issued show cause notice dated August 15, 2006 and alleged that since generating sets having capacity 5 KVA to 500 KVA are manufactured locally, thus the exemption of custom duty and tax is not admissible under SRO (1)/2005.
The counsel further argued that the customs authorities issued demand and recovery notice of Rs 98, 208, 466 and being aggrieved, applicant filed appeals before the department concerned and appellant tribunal which were dismissed dated January 03, 2008 and July 30, 2016.
Citing Customs Appellate Tribunal bench-II, Port Qasim Customs collector, Customs Sales Tax & Federal Excise (Appeals) collector and Port Qasim Import Processing & Group III assistant collector, applicant pleaded the court may set aside impugned demand notice and orders of the concerned department and tribunal.
