KARACHI: The Sindh High Court (SHC) directed customs officials to fle their para wise comments on a constitutional petition filed by M/s Saver Crop Science seeking exemption from imposition of minimum value addition tax, under the twelfth schedule to the sales tax act, 1990 etc.
On 13 December 2019, a two-member bench, headed by Justice Aqeel Ahmed Abbasi was hearing the matter.
During the hearing, counsel for the petitioner argued that petitioner is engaged in the manufacturing of fertilizers and nitrogen compounds vide sales tax registration no: 3984230, it may be noted here that the petitioner imported raw materials and intermediary goods meant for use is an industrial process.
He further submitted that petitioner is aggrieved and seriously prejudiced by the actions of the customs officials being government functionaries and working under the customs department, who are charging sales tax on account of minim value addition tax @3% at import stage on goods and materials imported by the petitioner.
He said that the brief of the case is that prior to finance act, 2019-20 such imposition of value addition tax purportedly in pursuance off powers derived under rules 58B of the sales tax (special procedure) rules 2006 (rules 2007 hence forth with), at the outset, it is pertinent to mention here that pursuant to the provision (i) of the rule 58B, the goods as are imported by the manufacture for in-house consumption are exempt from payment of such tax, however, the amount is being coercively collected by the customs authorities from the respondents, such coercion is in the shape of non-releasing goods, moreover, minimum value addition tax imposed by the respondents is not adjustable through output tax under the present scheme of law.
Citing secretary finance, chairman FBR, collector Appraisement East as respondents, petitioner pleaded the court to declare that the petitioner is exempted from imposition of minimum value addition tax, under the twelfth schedule to the sales tax act, 1990 and any demand and collection of such tax on the goods imported by the petitioner meant for use in an industrial process is illegal, ultra vires, unlawful, arbitrary, whimsical, discriminatory and un constitutional.
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