KARACHI: The Sindh High Court (SHC) has cancelled the suspension orders of the sales tax registration of the petitioner and directed the tax authorities to allow the petitioner to transact business activities and to file sales tax return. The court ordered this on a constitutional petition filed by M/s Prefab Engineering seeking restoration of its sales tax registration blocked by the Tax Department.
While the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also issued notices to the Tax Department and deputy attorney general for April 6, 2017 and directed them to file their respective para wise comments on the next date of hearing.
During the hearing, counsel for the petitioner argued that pursuant to assessment order dated 18/01/2017, the petitioner preferred an appeal before commissioner Appeals-IV RTO-II Karachi along with stay application, which is pending for disposal, however, during the pendency of such appeal the respondents have forcibly recovered the disputed amount for from the bank of the petitioner and has also suspended the sales tax registration of the petitioner which has come to the notice of the petitioner through online verification dated 22/03/2017.
After his arguments, court issued notices to the respondents and restrained them from taking any coercive action against it and also suspended the operation of the suspension order of sales tax registration till next date of hearing, court mentioned its order that “petitioner may be allowed to transact business activities and to file sales tax return, however, it may not claim any refund of tax till next date of hearing”.
Citing chief commissioner Inland Revenue Regional Tax Officer, the commissioner Inland Revenue Zone-III RTO-II Karachi, the commissioner Inland Revenue Appeals-IV RTO-II and others, petitioner pleaded the court may pass a restoration order of its sales tax registration and restraining order from taking any coercive action against it.
