KARACHI: The Sindh High Court (SHC) has directed the parties to file para wise comments on a sale tax reference filed by M/s Faco Trading against appellate tribunal’s judgment over refund claim of Rs 1,258, 980. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition.
Earlier, counsel for the applicant stated that the applicant is engaged in imports of commercial goods and is fully entitled to deduct input tax paid by petitioner from the payable output tax in terms of section 7 (1) of Sales Tax Act, 1990. He argued that it filed a refund claim of Rs 1,258,980 on account of the input incurred by the petitioner on its imports. However, the claim was not allowed for reasons that the terms of SRO 484 (1)/2004 dated 32/06/04 read with CBR letter C. no 3 (12) ST-Lx P104 dated 08/09/2004 due to which the appellate was not considered to be entitled for refund.
Being aggrieved, the petitioner filed appeals before the commissioner Inland Revenue Appeals and Appellate Tribunal Inland Revenue which dismissed these appeals without considering facts.
Citing Appellate Tribunal Inland Revenue, Secretary Revenue Division, Commissioner Inland Revenue Zone-II RTO-II as respondents, applicant pleaded the court may set aside impugned judgments and direct the tax department to refund its refund claim.
