KARACHI: A two-member bench of the Sindh High Court (SHC), headed by Justice Aqeel Ahmed Abbasi, has directed Commissioner Inland Revenue Appeals-IV to decide the appeal of M/s Highway Trading Company within four weeks.
The court ordered this on a constitutional petition filed by Syed Nafees Ahmed, proprietor of M/s Highway Trading Company, seeking to restrain the tax authorities from taking any coercive action for recovery of the disputed amount from him.
During the hearing, counsel for the petitioner submitted that tax authorities issued a notice for recovery of disputed amount and being aggrieved it moved to CIR Appeals-IV and filed an appeal along with stay application, however, it has apprehension of coercive action from the tax department.
He further argued that a taxpayer, if aggrieved by an adverse order passed by revenue authorities, is entitled to seek remedy of appeal provided under the relevant status by approaching the forums of appeal, therefore, the recovery proceedings initiated by the respondents department, under the circumstances, are based on mala fide.
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 CIR Appeals-IV 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 CIR Appeals-IV, CIR Special Sales Tax Zone-III, Regional Tax Office RTO and others as respondents, counsel had pleaded the court may restrain them from taking any coercive measures till final decision of its appeal.
