KARACHI: The Sindh High Court (SHC) has issued notices to the tax authorities and deputy attorney general on a constitutional petition filed by IBL Operation (Private) Limited against show cause notice of Rs 41.4 million.
During the hearing of the petition, a two-member bench comprising Justice Aqeel Ahmed Abbasi and Justice Khalim Hussain M Shaikh also directed them to file para-wise comments on the next hearing.
Earlier, counsel for the petitioner stated that the company imports various goods for onward sale in the country. The customs authorities issued a show cause notice to the company on August 23, 2016 under section 11 of the sales tax act 1990 as to why Rs 41. 4 million should not be recovered from it.
Citing chairman Federal Board of Revenue (FBR), commissioner Inland Revenue Zone-1, Large Tax Payer Unit, deputy commissioner Inland Revenue Audit RTO Unit-III Zone-1 and the commissioner (Appeals) Inland Revenue LTU as respondents, the petitioner pleaded the court to declare the impugned recovery notice is as illegal, mala fide and arbitrary and that the order passed by the customs authorities on October 31, 2016 be declared illegal and contravention of law. The petitioner pleaded that the court may restrain the respondents from taking any coercive action against it during the pendency of the application in court.
