KARACHI: The Sindh High Court (SHC) issued pre-admission notice to M/s Barbar Soap Works Private Limited on an appeal filed by Commissioner Inland Revenue, Zone-II Regional Tax Office Karachi challenging the impugned order of the appellate tribunal in respect of recovery of Rs 4,507, 202.
A two-member bench, headed by Justice Aqeel Ahmed Abbasi was hearing the appeal, court also fixed the hearing for fourth week of February 2017.
Earlier, counsel for the applicant stated that respondent is engaged in the manufacturing and supply of laundry soap, during the examination of record, deputy commissioner Inland Revenue E&C Unit-5, Zone-II Regional Tax Office Karachi observed that during the tax period from July 2011 to June 2013, the registered person has adjusted 100% input tax instead of permissible limit of 90% and thus the registered person was alleged to have contravened the provision of section 8B (1) of the Sales Tax Act. 1990.
According to the applicant, officials of the tax department issued a show cause notice to the respondent dated 27/01/2014 under section of the sales tax act, 1990 to the tune of Rs 4,507,202, however, respondent filed an appeal before commissioner Inland Revenue (Appeals-III) which was dismissed, therefore, respondent filed another appeal before Appellate Tribunal Inland Revenue Karachi which was allowed.
Citing M/s Barbar Soap Works Private Limited as respondent, applicant pleaded the court may set aside impugned order of the appellate tribunal.
