KARACHI: The Sindh High Court (SHC) has dismissed an application filed by M/S Express Security against imposition of sales tax on the petitioner under the Sindh Sales Finance Act 2013 by the assistant commissioner-VII of Sindh Revenue Board.
A two-member bench, comprising Justice Nadeem Akhtar and justice Muhammad Faisal Kamal, heard the application. During the hearing, the counsel for the petitioner requested for hearing of urgent application. However, court dismissed the urgent application with direction that “no case of urgency is made out “.
Earlier M / S Express Security through its Chief Executive Officer Captain (retd) Tahir stated that petitioner being security services provider has been rending the professional services to its clients as duly registered agency (Pvt) Ltd Company and also registered with the Federal Board of Revenue (FBR). It is said that the Ministry of Finance Sindh, has enacted “Sindh Finance Act 2013” whereby sales tax at the rate of 10 percent has been levied on services of the security agency with effect from July 01, 2013.
According to the petitioner, the assistant commissioner issued a notice dated May 20, 2016 to the petitioner asked registration with the Sindh Revenue Board (SRB) for sales tax on services. Petitioner stated that it is the duty of the state to provide expeditious and inexpensive justice, the Act 2013, insofar as it seeks to tax the services being rendered by the petitioner impedes access to justice and is in violation of the constitutional and fundamental rights of both the petitioner and its clients who seek access to justice and are entitled under the law and the constitution to inexpensive legal/ consultative advice.
Counsel argued that the Act, 2013 imposes a direct burden of tax on the right to access to justice/ legal remedy, this is unconstitutional. The Act and conduct of the respondents is misused of power. Petitioner had already paid the income tax to the concerned authority.
Citing Ministry of Finance Sindh secretary, Sindh Revenue Board secretary, SRB assistant commissioner as respondents the petitioner pleaded the SHC may set aside impugned notice issued by the respondents and restrain them from taking any coercive action against the petitioner.
