KARACHI: The Sindh High Court (SHC) has directed the commissioner Inland Revenue Appeals-I Karachi to decide the appeal of M/s Baker Hughes EHO Limited against attachment of its bank accounts within four weeks.
A two-member bench, headed by Justice Aqeel Ahmed Abbasi, ordered this on a constitutional petition filed by the company, challenging a show cause notice issued by additional commissioner Inland Revenue Audit Range-B, Zone-IV Large Taxpayers Unit-II for recovery of disputed amount.
During the hearing, counsel for the petitioner stated that it is registered with Securities and Exchange Commission of Pakistan as a branch of M/s Baker Hughes EHO Limited (Holdings) incorporated in Bermuda. The principal business activity of the petitioner is sale, service and rental of oil field equipment within Pakistan. He said that the additional commissioner Inland Revenue Audit Range-B, Zone-IV, Large Taxpayers Unit-II issued the show cause notice on June 11, 2016, alleging that the petitioner’s assessment for tax year 2012 is erroneous insofar as it was prejudicial to the interests of revenue, therefore, petitioner was directed to explain its position.
He further argued that dated 10/03/2017, respondents raised a demand of Rs99, 277, 218 in respect of tax year 2012 against the petitioner, being aggrieved it approached the Commissioner Inland Revenue Appeals and moved an appeal along with stay application, which is pending before disposal, however, in the absence of any stay order, petitioner is completely in the dark as to its appeal and stay application shall be heard and or decided. Counsel said that now respondents issued notice for attachment of petitioner’s bank account for said recovery.
Counsel submitted that court may pass any interim relief, after arguments, court disposed of the petition with directions to the respondents not to enforce recovery of impugned demand, which is subject matter of appeal before commissioner appeals-IV till its final disposal, whereas, in case of any adverse order, if passed by the commissioner appeals, the respondents shall not enforce recovery of impugned demand for further period of 7 days from the date of receipt of such appellate order.
SHC also mentioned in its order that “it is expected that the appeals of the petitioner, if not disposal of so far by the commissioner IR appeals shall be decided within a period of four weeks from the date of receipt of this order, which may be communicated to it in the counsel for the petitioner within one week”.
Citing Secretary Revenue Division, commissioner Inland Revenue Appeals-I, commissioner Inland Revenue Zone-IV, Large Taxpayers Unit-II, Additional commissioner Inland Revenue Audit Range-B, Zone-IV, Large Taxpayers Unit-II as respondents petitioner pleaded the court may direct CIR Appeals to decide its appeal within reasonable period and final decision of its appeal, respondents restrain from taking any coercive measures.
