KARACHI: The Sindh High Court (SHC) on Tuesday issued notices to the secretary Revenue Division, chief commissioner IR Regional Tax Office, (RTO) Hyderabad, deputy collector IR, Enforcement Unit-X as well as deputy attorney general on a plea filed by M/s Marvi Cotton Ginners against SRO no 188 (1)/2015, requiring the petitioner to pay the amount of Rs 6 per 40 kilogram on all in-house and outside supply of cottonseed. A two-member bench headed by Justice Munib Akhter heard the application.
Earlier, the petitioner’s counsel stated that his client is running a business of ginned cotton and oil mills which is seasoned activity and manufacturing cotton lint, cottonseed, oil cake and cottonseed oil and paying all leviable taxes properly.
According to the petitioner, a dispute of payment of Rs 6 per 40 kilogram on supply of cottonseed arose when the secretary Revenue Division issued SRO NO 188 (1)/2015 on 5th March 2015 binding the petitioner to pay the amount of Rs 6 per 40 kilogram on all in-house and outside supply w.e.f 1st July 2014 and onward.
The counsel stated that petitioner is a cotton ginner who purchases raw phutti and after manufacturing process, it obtains two products, one is cotton lint and the other is cottonseed. The sales tax is paid on electricity used in the process of manufacturing is in terms of section 7 of the sales tax act,1990. However this right has been deprived from the petitioner through issuance of said SRO, which is illegal and without any jurisdiction. Petitioner prayed to the court to declare the said SRO as unconstitutional and illegal.
