KARACHI: The Sindh High Court (SHC) has directed the tax authorities to restore the sales tax registration of the petitioner immediately, however, the petitioner may not be allowed to claim any refund or input adjustment in respect of local purchase till the next date of hearing. The court ordered this on a constitutional petition filed by M/s Cosmos International, seeking restoration of its sale tax registration suspended by tax authorities.
A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan, was hearing the petition.
During the hearing, no one has shown appearance on behalf of the respondents’ in-spite of services of the court notices. Counsel for the petitioner has drawn the attention of his court to the order dated 28/02/2017, whereby, the court directed the respondents that some responsible officer should be in attendance on the next date of hearing. But during the hearing, neither any comments have been filed on behalf of respondents, nor the concerned officer has shown appearance to assist this court on the subject controversy.
The counsel for the petitioner further submitted that on account of illegal suspension of sales tax registration and blacklisting, the petitioner’s business has come to a halt, hence requested that some initiate relief may be allowed to carry on lawful business activity during pendency of the appeal before appellate tribunal.
After the hearing, court observed in its order that, “as an indulgence, we are adjourning the matter to March 17, 2017 with the directions to the concerned officer to be present the court on next date along with all relevant record, in meanwhile, respondents are directed to restore the sales tax registration of the petitioner immediately, so that petitioner may transact his business activities, however, petitioner may not be allowed to claim any refund or input adjustment in respect of local purchase till next date of hearing”.
Earlier, counsel for the petitioner stated in its petition that it is engaged in the business of import and supply of goods being description “porcelain and ceramic tiles” and paying all liabilities regularly, however, officials of the custom department suspended its sale tax registration without shown any lawful reason. Being aggrieved it filed an appeal before concerned authority which is pending before the concerned authority; however, due to delay the same, petitioner is suffering heavy losses.
Citing Commissioner Inland Revenue Zone-IV, Regional Tax Office-II as respondent, importer pleaded the court may direct the respondent to decide its appeal as soon as possible.
