KARACHI: The Sindh High Court (SHC) has adjourned the hearing of a constitution petition filed by M/s Venus Pakistan (Private) Limited against a notice for the recovery of outstanding sales tax amounting to Rs 26.805 million.
The hearing was fixed before a division bench comprising Justice Munib Akhter and Justice Abdul Malik Gaddi but due to shortage of time, the court adjourned the hearing for date which will be decided by the court’s staff.
On last hearing, the court had directed that till next date of hearing, proceedings on the show cause notice to continue and petitioner must give proper reply. It was also directed not take final decision on the notice without permission of the court.
Earlier, the petitioner’s counsel stated that petitioner has been running a cold storage warehouse and has provided transportation and warehouse facilities to M/S Siza Foods Pvt Ltd and the income tax had been deducted at source from all invoices upon payment.
According to the petitioner, however, assistant commissioner of Sindh Revenue Board (SRB) has issued show cause notice on April 11, 2016 and demanded Rs 26,805,591 as an outstanding sales tax from the petitioner.
The counsel argued that petitioner has provided transportation and ware housing services to M/S Siza Foods Pvt Ltd and said services do not come within the domain of taxable services nor any sales tax is applicable to the said services. Therefore respondent have illegally and unlawfully imposed tax amount upon the petitioner.
Citing SRB chairman, assistant commissioner, Sindh chief secretary and others as respondents, petitioner pleaded the SHC to declare the ware housing and transportation services do not come under the ambit of taxable services and contractual services. The court was further requested to restrain the respondents from taking any action against the petitioner.
