KARACHI: The Sindh High Court (SHC) has issued notices to the tax authorities and deputy attorney general of Pakistan on a constitutional petition filed by M/s Quality Steel Re-Rolling Mill against 17 percent sales tax along with 5 percent extra tax imposed by M/S Sui Southern Gas Company for gas consumption.
While hearing of the petition, a two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Rasheed Ahmed Soomro, also directed them to file their para-wise comments on the next date of hearing.
Earlier, counsel for the petitioner stated in its constitutional petition that it is paying sales tax at the rate of Rs. 9/per unit of electricity consumption along with monthly electricity charges as per the bill issued by Lasbella Industrial Estates Department Authority.
Counsel said that petitioner’s grievances that thought payment of sales tax at the rate of Rs. 9/per unit with electricity bill is a final discharge of sales tax liability yet the petitioner is being made to pay sales tax at the rate of 17% along with extra tax at the rate of 5% with monthly gas bill issued by M/S Sui Southern Gas Company for gas consumption. Petitioner is this way is paying sales tax at the rate of 22% along with gas bill which sales tax actually is not legally.
Citing Sectary Ministry Finance, Chairman Federal Board of Revenue (FBR), the Chief Commissioner Inland Revenue Large taxpayers unit-II, the Commissioner zone-II, Large taxpayers unit-II, M/S Sui Southern Gas Company as respondents, petitioner pleaded the court may declare that the petitioner is not liable to pay sales tax the addition to sales tax paid as a final tax liability at the rate of Rs.9 per unit.
Petitioner also pleaded the SHC may declare that gas bill issued by the SSGC is illegal unlawful, unjustified and without jurisdiction and direct the respondents to issue general order in exempting the petitioner from payment of sales tax and extra tax.
