KARACHI: The Sindh High Court (SHC) has issued notices to the attorney general and the advocate generals of all provinces, including Islamabad, high officials of the Federal Board of Revenue, Sindh Revenue Board and others, directing them to assist the court in respect of a controversy relating to charging of sales tax on services in more than one provinces, particularly after the 18th amendment in the constitution.
A two-member beach, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan, ordered this while hearing a constitutional petition filed by Shell Pakistan Limited.
During the course of hearing and arguments from the learned counsels, it was transpired that the controversy agitated through instant petition relates to charging of sales tax on services in respect of the amount of royalty and franchiser and the amounts received by the petitioner from the retailers from all over the country.
However, the dispute has arisen in pursuance of a impugned show cause notice issued by the Sindh Revenue Board requiring the petitioner to make payment of sales tax on services in respect of entire amount received by the petitioner.
Counsel for the petitioner argued that amount of sales tax on services in respect of transactions beyond the territorial jurisdiction of Sindh, as well as by FBR, cannot be demanded by SRB, he further submitted that the order to resolve such controversy, notices may be issued to the attorney general of Pakistan, advocate generals of all provinces, including Islamabad, who may assist this court in respect of a controversy relating to chargeability of sales tax on services being provided in more than one provinces, particularly after 18th amendment in the constitution.
