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Home Karachi

SHC adjourns M/s New Allied petition against Rs 75m tax notice

byM.B. Rana
12/07/2016
in Karachi, Latest News
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KARACHI: The Sindh High Court (SHC) has adjourned the hearing of constitution petition filed by M/s New Allied Electronics Industries (Private) Limited against impugned demand notice of Rs 75.039 million on account of sales tax issued by tax authorities.

A two-member bench, comprising Justice Irfan Sadat Khan and Justice Arshad Hussain Khan heard the petition and adjourned it for date which would be announced according to roaster.

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On last date of hearing, the court had restrained the tax authorities from taking any coercive measures against the petitioner, in respect of the impugned demand notice till the next hearing and also had issued notices to the FBR chairman, Large Taxpayers Unit-III (LTU-III) Inland Revenue (IR) commissiner, LTU Audit deputy commissioner as well as deputy attorney general directing them to file their respective comments.

Earlier, counsel for the petitioner stated that it is importer and exporter of the mobile phones and others electronics items and fulfilling all the requirements and paying all liabilities regularly and never involved in any illegal activity. However, on April 18, 2016, IR duty commissioner issued notice to the petitioner under Section 11 (2) of the Sale Tax Act, 1990, whereby an amount of Rs 75,039,277 along with surcharge has been demanded from the petitioner on account of sale tax.

The counsel submitted that the said order has been challenged by the petitioner before Appeals commissioner and a stay application for suspension of the said order has also been filed in the same appeal.

The appeal and stay application filed by the petitioner are pending, while the respondents had threatened to take coercive measures against the petitioner for recovery of the impugned demand.

The counsel argued that the respondents have no right to seek recovery of the impugned demand or to take any coercive measures against it. After hearing the arguments, the court granted stay order on the recovery and sought comments from the tax authorities.

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