KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from taking any coercive measures against M/s New Allied Electronics Industries (Private) Limited, in respect of the impugned demand notice of Rs 75,039,277 on account of sales tax till the next hearing.
While hearing a constitutional petition filed by M/s New Allied Electronics Industries, a two-member bench, comprising Justice Nadeem Akhtar and Justice Muhammad Faisal Kamal also issued notices to the FBR chairman, collector Inland Revenue (Appeals-I) Large Taxpayer Unit-III, Deputy Commissioner Audit Unit – I, Zone – I Large Taxpayer Unit as well as deputy attorney general directing them to file their respective comments on July 4,2016.
During the hearing, counsel for the petitioner stated that it is importer and exporter of the mobile phones and others electronics items and fulfilling all the requirements and paying all liabilities regularly and never involved in any illegal activity. However, on April 18th, 2016 Deputy Commissioner Inland Revenue, Audit Unit – I, Zone – I, Large taxpayer Unit issued notice to the petitioner under section 11 ( 2 ) of the sale tax act. 1990 ,whereby and amount of Rs75,039,277/- along with surcharge has been demanded from the petitioner on account of sale tax.
The counsel submitted that the said order has been challenged by the petitioner before the Commissioner (Appeals-I) and a stay application for suspension of the said order has also been filed in the same appeal. The appeal and stay application filed by the petitioner are pending and during the pendency , the respondents had threatened to take coercive measures against the petitioner for recovery of the impugned demand.
The counsel argued that the respondents have no right to seek recovery of the impugned demand or to take any coercive measures against it. After hearing the arguments, the court granted stay order on the recovery and sought comments from the tax authorities.
