KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from taking any coercive action against the petitioner on a constitutional petition filed by M/s United King against an impugned show cause notice for recovery of Rs 17,502,073 for the tax period from October 2013 to August 2016. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition.
Earlier, counsel for the petitioner stated that petitioner is engaged in the business of manufacturer, sale of sweets (mithai), cakes and bakery items like bread, rusks, (exempt items under the sales tax act, 1990), etc also sales eggs, beverages, batter etc. However, deputy commissioner Inland Revenue Unit-4 Zone-III, Large Taxpayer Unit-II issued a show cause notice dated 25/10/2016 and 08/11/2016 for charging alleged extra tax 2 percent amounting to Rs 17, 502, 073 for the tax period from October 2013 to August 2016 in terms of value 58 S & 58 T of chapter XIII of sales tax special procedures rules 2007 as amended vide SRO 896 (1)/ 2013 dated 04/10/2013 is illegal, unlawful, mala fide and without jurisdiction.
Citing Secretary Revenue Division, the chief commissioner Inland Revenue Large Taxpayer Unit-II, the commissioner Inland Revenue Zone-III Large Taxpayer Unit-II and deputy commissioner Inland Revenue Unit-4 Zone-III, Large Taxpayer Unit-II as respondents, petitioner pleaded the court to declare that act of the respondent is illegal, mala fide and arbitrary and court also may set aside impugned show cause notice for recovery of said amount and restrain them from taking any coercive action against the petitioner.
