KARACHI: The Sindh High Court (SHC) has directed the tax authorities to restore the sales tax registration of the petitioner and adopt a legal procedure before taking any adverse action against him. The court took the action on a constitutional petition filed by M/s AS Paper Products (Private) Limited, seeking restoration of its sales tax registration suspended by tax authorities.
A two-member bench comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan was hearing the case.
During the hearing, counsel for the petitioner submitted that suspension of the sales tax registration has been made in violation of rules 2006 and also the provision of sales tax registration ordinance, as neither any notice was issued to the petitioner nor any order had been passed to blacklist the petitioner within 90 days from the date of suspension.
He further submitted that the disputed amount, which was required to be paid for the relevant period towards sale tax liability has already been paid, which has been duly acknowledged in Order-in-Original (ONO) passed in the instant case. Therefore, there is no lawful justification for suspension of the petitioner’s sales tax registration.
However, counsel for the tax department submitted that petitioner’s sales tax registration has been suspended for various reasons and lawful procedure also adopted.
After completion of both sides’ arguments, court observed that relevant lawful action has not been adopted before suspension of petitioner’s sales tax registration, therefore, court directed the tax department to restore the sales tax registration of the petitioner and disposed of the petition with directions that “petition is disposed of with the directions to the respondents to restore the sales tax registration of the petitioner, however, if there is any material available with the respondent, relating to violation of the provisions of Sales Tax Act, 1990 which may require an action in terms of rules 12 of sales tax rules, 2006 or section 21 of the Sales Tax Act, 1990, legal procedure shall be adopted before taking any coercive action, opportunity of being heard shall be provided to the petitioner”.
