KARACHI: The Sindh High Court (SHC) issued notice to Pakistan International Airline Corporation on a sales tax reference application filed by the Commissioner Inland Revenue Zone-I, Large Taxpayer Unit challenging impugned judgment of the Excise and Sales Tax Appellate Karachi deleting the penalty imposed by custom department.
While the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also fixed the matter for 1st week of April and directed the respondent to ensure file para wise comments on next date of hearing.
Earlier, counsel for the applicant stated in its reference application that a custom department issued show cause notice issued to the respondent under section 11 (1) of the sales tax act, 1990 for violation of section 26 of the sales tax act, 1990 read with rule 18 of the sales tax rules, 2006 and section 4 of the federal excise act, 2005 and further read with rule of 41A of the federal excise rule, 2005.
According to the applicant, being aggrieved respondent approached the concerned authority and filed an appeal against said show cause notice, however, Commissioner Inland Revenue (Appeals-III) Karachi passed an order in favour of department, therefore, respondent again filed an appeal before the Excise and Sales Tax Appellate Karachi which upheld impugned order of the CIR A to the extent of levy of default surcharge, however, the penalty imposed by the officer and maintained by the CIR A is hereby deleted.
Citing Pakistan International Airline Corporation as respondent, applicant pleaded the court may declare that Excise and Sales Tax Appellate Karachi has no jurisdiction to delete the penalty imposed by customs department and set aside its order.
