KARACHI: The Sindh High Court (SHC) has directed the customs authorities to file para-wise comments on constitutional petitions filed by M/S Khurram Enterprises, M/S Aziz Sons and M/S MSMS Trading Co against imposition of 3 percent value addition tax (VAT) on commercial commodities including auto and motorcycle parts.
A two-member bench, comprising Justice Irfan Sadat Khan and Justice Muhammad Humayun Khan, was hearing the petitions.
Earlier, counsel for the M/S Khurram Enterprises stated in its petition (which was connected with above named petitions) that it majorly imports many commercial commodities including auto & motorcycle parts from China and other countries. Petitioner imported some consignments of auto & motorcycle parts in the year 2016 and submitted sales tax returns for the months of May, June and July, 2016.
According to the petitioner, however, same sales tax returns were not accepted and petitioner was advised to pay further 3% value addition tax illegally, mala fide and arbitrarily manners. Importer argued that petitioner is already paying the sales tax accordingly, therefore, demand of the further value addition tax is illegal.
Citing Chairman Federal Board of Revenue, Sectary (ST&FE) Procedure & exemption, Additional Sectary Ministry of Finance, Collector of Customs Appraising East, Collector of Customs Appraisement Collectorate West, Collector of Customs Appraisement Port Muhammad Bin Qasim and Commissioner Inland Revenue Services as respondents, petitioner pleaded the court may declare that act of the respondents is illegal, mala fide and of no legal effect.
Importer also pleaded the court may direct them to release the consignment of the petitioner immediately and restrain them from taking any coercive action against the petitioner.
