KARACHI: The Sindh High Court (SHC) has directed the appellate authority to decide the pending appeal of a petitioner, Jahanzaib, seeking cancellation of demand notice of Rs 239,007,761 for sales tax, within 45 days.
A two-member bench, comprising Justice Nadeem Akhtar and Justice Muhammad Faisal Kamal, was hearing the petition. It also directed the authority concerned not to initiate recovery proceedings against the petitioner over impugned recovery for sales tax till the final decision.
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During the hearing, counsel for the petitioner stated that he filed an appeal before the appellate authority which is still pending but the department is pressing for recovery of the impugned demand. He under takes that the petitioner shall not take any such step that may delay or frustrate the proceedings before the appellate authority.
Earlier, the petitioner’s counsel stated that the petitioner is operating business in the name of style M/s Umer & Sons and fulfilled all the conditions and liabilities regularly. However, officials of the tax authorities issued a notice on April 22,2016 to the petitioner for recovery of disputed tax liability of Rs 239,007,76 and petitioner filed an appeal before the appellate authority which is still pending.
Citing secretary Ministry of Finance, commissioner – Inland Revenue (Appeals-IV), deputy commissioner Inland Revenue Audit Unit -01, Zone-III Large Taxpayer Unit as respondents, the petitioner pleaded the SHC to set aside impugned demand notice and restrain the respondents from taking any coercive action against it.
