KARACHI: The Sindh High Court (SHC) on Wednesday directed the officials of Sindh Revenue Board to file comments on a petition of Noarsh Shipping Services (Private) Limited through which it challenged SRB’s notice for recovery of Rs 27 million tax.
Noarsh Shipping submitted that it was issued a show-cause notice by SRB, informing it that the services being provided by it are taxable under section of Sindh Sales Tax on Service Act 2011 and it is liable to pay 16 percent sales tax of total value of taxable services. The petitioner firm was asked to explain as to why it had failed to file sales tax returns for periods from July 2011 to June 2012 and July 2012 to June 2013.
Subsequently, the petitioner filed a reply to the show-cause notice before SRB’s officer who later issued an Order-in-Original upholding the claim of the SRB.
The petitioner’s counsel told the judges that the petitioner approached the SRB’s commissioner Appeals against ONO and the matter is still pending but the SRB officials issued notice for recovery of Rs 27 millions unlawfully and ordered freezing of the bank accounts of petitioner. He complained to the judges that the unlawful act of the SRB officials had affected the petitioner’s business.
The petitioner, therefore, pleaded to the court to order the authorities to withdraw the recovery notice and order de-freezing of its bank accounts so that it could resume its business activities.
