KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from taking any coercive action against M/s. S.Q Corporation against the impugned demand notice of Rs 14.5 million issued by the deputy commissioner Inland Revenue E&C Regional Tax Office (RTO) Karachi.
A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Arshad Hussain Khan, took this action on a constitutional petition filed by the petitioner.
Earlier, counsel for the petitioner stated that the petitioner is engaged in the shipbreaking business and imports unserviceable vessels for dismantling and sells it as scrap in open market and paying all liabilities regularly.
He further added that however, the deputy commissioner Inland Revenue E&C Regional Tax Office Karachi issued notice on January 23, 2016 to banks of the petitioner for collection of disputed sales tax along with default surcharge and penalty amounting to Rs 14.5 million.
Citing chief commissioner Inland Revenue Corporate Regional Tax Office, the commissioner Inland Revenue Zone – II Corporate Regional Tax Office and the deputy commissioner Inland Revenue E&C Regional Tax Office Karachi as respondents, petitioner pleaded the court to declare act of the respondents as illegal, mala fide and arbitrary.
Importer also pleaded the court to restrain the respondents from taking any coercive action against the petitioner and direct them to immediately de-attach the bank accounts of the petitioner by withdrawing the notice under section 148 (1) (b) ( a) of the Sales Tax Act, 1990.
