KARACHI: The Sindh High Court (SHC) has continued an interim order regarding impugned recovery proceedings of around Rs 599.54 million as federal excise duty in respect of the services for the tax year 2010 to 2014 issued by tax authorities to the petitioner M/s Mondelez Pakistan (Private ) Limited.
A two-member bench comprising Justice Munib Akhter and Justice Abdul Malik Gaddi heard the petition.
During the hearing, the deputy attorney general and assistant assistant advocate general requested for some time to submit para wise comments on behalf of the provincial and federal authorities respectively. The court adjourned the hearing and continued the interim order made earlier till next date.
Earlier, the petitioner’s counsel stated that petitioner’s company is a part of world’s largest snack companies and it has paying sales tax under section of the Sindh Sales Tax on Services Act 2011,on the value of its franchise.
However, on Dec 23, 2015, the officials of tax authorities issued a show cause notice for recovering tax year 2010 to 2014 and alleged that the petitioner had violated the Federal Excise Act 2005. The notice had demanded amount of Rs59,953,799 as federal excise duty along with default surcharge from the petitioner.
Citing secretary Ministry of Finance, chairman Sindh Revenue Board, chairman FBR, deputy commissioner Inland Revenue Unit – 04 Zone-IV as the respondents, the counsel for petitioner pleaded the SHC to declare the impugned demand notice as illegal, mala-fide and unjustified. The court was further requested to set aside impugned demand notice and restrain them from taking any coercive action against the petitioner.
