KARACHI: The Sindh High Court (SHC) has issued notices to the tax authorities on a constitution petition filed by M/s Frontier Dextrose (Private) Limited, seeking exemption from the levy of sales tax on “low density polyethylene” under SRO No 551 (1)/2008 .
During the hearing of petition, a two-member bench, comprising Justice Muhammad Iqbal Kalhoro and Justice Khadim Hussain M Sheikh, also directed the respondents to submit their respective comments for August 9, 2016.
Earlier, the counsel for the petitioner stated that petitioner deals in manufacturing of drugs and medicines and is registered under Drugs Act 1976 and regularly filing its sales tax returns and discharging sales tax liabilities as per different provisions of Sales Tax Act, 1990.
According to the petitioner, Ministry of Finance exercise of powers conferred by Sales Tax Act 1990 and issued SRO 551(1) /2008 dated June 11, 2008 whereby various exemptions were notified of payment of sales tax, at the serial number 11 of the said SRO raw materials for basis manufacturer of pharmaceutical active and for manufacturer of pharmaceutical products were exempted from payment of sales tax.
Petitioner is manufacturer and importer of low density polyethylene and is availing the exemption from the levy of sales tax under SRO NO 551 (1) / 2008 and had already cleared a number of goods declarations of low density polyethylene from all collectorate of Karachi.
