KARACHI: The Sindh High Court (SHC) has directed the tax authorities to file their para wise comments on a constitutional a petition filed by Shaikh M Ishtiaq against imposition of 3 percent additional sales tax amounting to Rs 445,745/- on the consignment of “deformed steel bars and iron rods “.
A two-member bench, comprising Justice Munib Akhter and Justice Anwar Hussain, heard the petition.
During the hearing, Ilyas Ahsan Khan appeared before the court and requested some time for filing para wise comments, therefore, the court adjourned the hearing for (today) September 23, 2016.
Earlier, petitioner’s counsel stated that petitioner being manufacture also imports deformed steel bars and iron rods from different parts of the world for its in-house consumption. Petitioner does not sell any of the bars imported in the same condition.
According to the petitioner, he also bends the bars into assorted shapes and has process the bars before selling and they fall in the definition /category of manufactured only as the same are not sold in the original imported condition of purchase.
He argued that SRO 525 (1) / 2008 the respondent had been pleased to levy 2% additional sales tax on the import of all takeable goods as chargeable tax under section -3 of the customs act, but section 58 (b) of above SRO provides that no such value additional tax can be levied / charged on the goods which are imposed by the manufacturer for in-house consumption.
He further argued that, he imported the consignment of deformed steel bars of grade -500 B ( 157 – Bundles ) ,however, respondents in violation of aforesaid SRO 525 ( 1 ) / 2008 has charged additional sale tax 3% amounting to Rs. 445,745.
Citing Secretary Ministry of Commerce, Chairman Federal Board of Revenue ( FBR ), The Chief Collector of Customs Appraisment, The Collector of Customs Model Customs Collectorate, Appraisment-Eest and Deputy Collector of Customs East Group – V as respondents, Petitioner pleaded the SHC may direct the respondents to refund to the petitioner amount charged as 3% additional sales tax.
Petitioner also pleaded the Court may declare that the petitioner is genuine manufacturer and importer of customs and fall the definition of manufacture and as such neither the 3% additional sales tax can be claimed /charged nor the petitioner is liable to pay the same.
