KARACHI: The Sindh High Court (SHC) has issued notices to the secretary Ministry of Finance, chairman FBR, deputy commissioner Inland Revenue Unit – 5, Commissioner Inland Revenue Appeals -III, chairman Sindh Revenue Board and deputy attorney general, directing them to file their respective comments on a petition filed by M/s Saao Capital (Private) Limited against demand notice of Rs 2,261,330 for the payment of federal excise duty (FED).
A two-member comprising Justice Munib Akhter and Justice Abdul Malik Gaddi, heard the petition.
Earlier, the petitioner’s counsel stated that petitioner is a member of the Karachi Stock Exchange and Securities and Exchange Commission of Pakistan. The petitioner is engaged with trading of shares listed in KSE.
According to the counsel, the petitioner received a show cause notice on June 15, 2015 from tax authorities in which the petitioner was asked why an action should not be initiated against him for violation of Federal Excise Act, 2005.
In a reply, the petitioner explained that after the enactment of the Sindh Sales Tax Act, the FBR has no jurisdiction, power or authority to charge excise duty form the petitioner. However, the respondents directed the petitioner for immediate payment of the said amount as FED under section 11 ( 2 ) of the sales tax act.
The petitioner stated that it filed an appeal before concerned authority but it was rejected. The petitioner prayed to the SHC to set aside impugned demand notice and restrain the respondents from taking any coercive action against him.
