KARACHI: The Sindh High Court (SHC) on Friday restrained the Sui Southern Gas Company from recovering sales tax amount from M/s Moonlite (Private) Limited as per the impugned FBR order dated February 25, 2016. A two-member bench comprising Justice Munib Akhter and Justice Abdul Malik Gaddi heard the application.
Earlier, the counsel for the petitioner stated that petitioner is a manufacturer/ exporter of the acrylic blankets, carpet yarn, candlewick products, etc. According to the petitioner, its business activity comes within the five sectors in which the federal government is allowed to charge sales tax at the rate of zero percent.
The petitioner submitted that suddenly on April 24, 2015, SSGC served a recovery notice on the ground that the customer ID/ gas consumer is not the one as mentioned in STGO and therefore the energy supplier advised the petitioner to deposit tax on the energy consumed during January 2008 to October 2013.
The exporter pleaded the SHC to declare recovery notice issued by the SSGC as illegal, malafide, and without any lawful excuse.
