KARACHI: The Sindh High Court (SHC) extended an interim order on the restoration of petitioner’s sales tax registration for further two weeks and directed the tax department to decide the matter according to the law on a constitutional petition filed by M/s Ship Masters seeking restoration of its sales tax registration suspended by tax authorities.
A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition.
During the hearing, court disposed of this petition with the direction that interim order further continued for two weeks however petitioner will not be entitled to claim any adjustment or refund. The court also directed the Commissioner Inland Revenue Regional Tax Office-II to issue show cause notice to petitioner regarding the sales tax’s registration and petitioner may file a proper reply and after given fair opportunity, said respondent may pass order according to the law.
On the last date of hearing, no one was in attendance on behalf of respondents despite service of court notice in the office of the CIR RTO-II Karachi whereas no intimation was received. The counsel for the petitioner had submitted that the petitioner is facing hardships and serious financial crises in view of such illegal suspension of sales tax registration whereas no notice has ever been served on the petitioner in terms of section 21 of the Sales Tax Act-1990. The petitioner further contended that no penal proceedings whatsoever are pending against the petitioner in respect of his taxable activities which have come to a halt on account of illegal suspension by the respondents with effect from 13th of June 2013.
It has been prayed that interim relief may be granted. During the hearing, assistant attorney general requested for further time to seek instructions and file comments on behalf of the respondents.
After the hearing, court had suspended the operation of suspension of Sales Tax registration of the petitioner and directed the respondents to file their para-wise comments on the next date of hearing.
Citing Chairman Federal Board of Revenue (FBR), Commissioner Inland Revenue Regional Tax Office-II as respondents, the counsel for the petitioner pleaded with the court to kindly restore its Sales Tax registration immediately.
