KARACHI: The Sindh High Court (SHC) has granted an application for urgent hearing of a petition filed by Trans Refinery Limited against a show-cause notice issued by the deputy commissioner (IR) over alleged tax fraud.
The SHC division bench, comprising Justice Munib Akhter and Justice Abdul Malik Gaddi, was hearing the application.
Earlier, the counsel for the applicant stated that the Deputy Commissioner (IR) has issued a show cause notice on 1st June 2013 under section 11 (2) of the sales tax Act, 1990 and alleged that applicant has imported plant, machinery, equipment and spare parts under concessionary custom duty vide SRO 575 (1)/2006 dated 5 June 2006 without payment of sales tax. In the notice, it was further alleged that the applicant doesn’t fall in the ambit of said SRO therefore, applicant allegedly had committed tax fraud amounting to Rs 1,347,649,100 is recoverable along with default surcharge to be calculated at the time of payment.
The counsel stated that applicant had fulfilled the conditions in SRO 575 (1)2006 to the satisfaction of the custom. The applicant had also filed an appeal before the concerned authority but it was rejected.
Citing Regional Tax Office, through Chief Commissioner Inland Revenue and sales tax and federal excise duty, as respondents, the counsel prayed to the SHC to set aside order of the concerned authority.
