KARACHI: Recently, in an order, the Sindh High Court (SHC) granted relief to a Special Customs Reference Application (SCRA) submitted by Gadoon Textile Mills Limited, Karachi. The mills had sought a challenge against the behavior of the customs authorities relating to the recovery of short levied Sales Tax and Income Tax.
The bench of the Sindh High Court noted that the question posed by this case was already decided in a prior order, Nestle Pakistan Limited v/s Federal Board of Revenue (2023 PTD 527). On this basis, the court held that the recovery of taxes by the customs authorities was not legitimate.
This ruling is important for textile mills as it creates a precedent in contesting recovery notices issued by customs authorities.
