KARACHI: The Sindh High Court (SHC) continued the interim order that had stayed impugned recovery proceedings of input tax amounting to Rs 1,319,175 from by M/s Mahmood Industries (Private) Limited on a constitutional petition filed by it.
A two-member bench, comprising Justice Munib Akhter and Justice Abdul Malik Gaddi, was hearing the petition.
During the hearing, Kafeel Ahmed Abbasi filed power on behalf of the Customs Department and requested for some time to submit para wise comments. The court adjourned the hearing for June 9, 2016 and continued interim order made earlier till next date.
Earlier, the petitioner’s counsel stated that petitioner is engaged in the business of manufacturing and subsequent supply of plastic goods and filing sale tax regularly. However, officials of the tax authorities issued show cause notice on April 11,2016 to the petitioner for recovery of alleged input tax amounting to Rs1,319,175. It filed an appeal before the concerned Appellate authority which is still pending but respondents are threatening the petitioner for recovery of disputed tax.
Citing chairman FBR, commissioner Inland Revenue Zone – III, RTO – III, Officer Inland Revenue Enforcement Unit-2, Zone – III, RTO-III as respondents, the petitioner pleaded the SHC to set aside impugned demand notice and restrain the respondents from taking any coercive action against it.
