KARACHI: The Sindh High Court (SHC) extended interim order and restrained officials of the Federal Board of Revenue (FBR) from taking any coercive action against the petitioner on a constitutional petition filed by M/s Hamdam Paper.
M/s Hamdam Paper filed the petition against a show-cause notice issued by commissioner Inland Revenue Zone-IV, Large Taxpayers Unit-01, Karachi with the intention to revoke and cancel exemption certificates issued under Section 148, 153 (1) on the basis of false and frivolous/fraudulent declaration. A two-member bench, headed by Justice Abdul Rasool Memon was hearing the matter on July 18, 2018.
During the hearing, counsel for the parties sought further time to conclude arguments; therefore, the court granted time and adjourned the matter.
The counsel for the petitioner stated in its constitutional petition that petitioner is private limited company and engaged in the business of manufacturing, cutting, converting paper products as well as manufacturing of exercise books, letterhead, writing pad etc and always fulfills all the legal formalities according to with law.
He argued that on May 4, 2018 a show-cause notice was issued to the petitioner on various allegations with the intention to amend the sales tax returns e-filed by the petitioner for tax period from July 2014 to June 2017 and directed the petitioner to pay illegal and unjustified sales tax liability of Rs309,679,974 and a show-cause notice was also issued to the petitioner with the intention to retrospectively cancel and revoke exemption certificate.
Citing Secretary Ministry of Law, chairman Federal Board of Revenue, commissioner IR Large Taxpayer Unit-01, and others as respondents, counsel for the petitioner pleaded that the show-cause notice may kindly be suspended with directions to respondents to produce documentary evidence available against the petitioner on the basis of which it has been alleged that exemption certificate was obtained on the basis of false and frivolous/fraudulent declaration.
He also pleaded that the court may restrain them from taking any coercive action against the petitioner till final order in this petition.
