KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from recovering Rs 375, 619, 230 under the head of sale tax issue from M/s Al Hilal Packaging (Private) Limited.
A two-member bench comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan took this action on a constitutional petition filed by the petitioner.
During the hearing, counsel for the petitioner submitted that the deputy commissioner Inland Revenue E&E Unit-01, Zone-III, Corporate Regional Tax Office Karachi passed an order on December 28, 2016 directing the petitioner to pay Rs 375,619,230 under the head of sale tax. However, the petitioner approached the commissioner (Appeals-III) and filed an appeal along with a stay application which are pending for disposal.
The counsel further submitted that during the pendency of such appeal, respondents threatened the petitioner to initiate recovery proceeding. He requested the court to restrain the respondents from taking any adverse action against him.
After the arguments, court restrained the tax department from recovery of said amount and also issued notices to the tax authorities and deputy attorney general and directing them to file their respective comment for February 15, 2017.
Earlier, counsel for the petitioner stated that it is fulfilling all the liabilities regularly however, officials of the tax authorities issued a show cause notice for total demand of Rs 375,619,230 illegal.
Citing Chairman Federal Board of Revenue (FBR), commissioner Inland Revenue and Deputy Commissioner Inland Revenue, Zone-III Corporate Regional Tax Office as respondents, petitioner pleaded the court may declare that act of the tax department is illegal, mala fide and arbitrary.
Importer also pleaded the court may set aside impugned show cause notice and restrain them from taking any adverse action against the petitioner.
