KARACHI: The Sindh High Court (SHC) has directed parties to file comments on a constitutional petition filed by M/s Fauji Fertilizer Company Limited against collection of sales taxes on imports twice — firstly under section 3 (1) of the act and secondary under section 58 (b) of the special procedure rules @ 3% of the value addition. A two-member bench, headed by Justice Munib Akhtar, heard the petition.
Earlier, counsel for the petitioner stated that it is one of the largest commercial importer of fertilizer and contributes a huge money to the national exchequer in respect of duties, taxes and sales taxes. However, officials of the tax department are charging sales tax on imports from the petitioner twice.
He submitted that the total value addition sales tax paid by the petitioner at the import stage for the tax periods 01/07/2016 to 30/06/2017 is Rs 363,766 384, he inter-alia challenges under article 199 of the constitution of Islamic Republic of Pakistan, 1973.
Citing Secretary Ministry of Finance, chairman Federal Board of Revenue, Customs Collectorate KEWB, Imports East Bulk, Customs Collectorate East, Customs Collectorate West and others, he pleaded the court to declare act of the respondents as illegal, mala fide and arbitrary and court also may declare that the arbitrary interpretation to the provisions of section 3 (I) of the Sales Tax Act, 1990 and chapter X of the sales tax special procedure rules 2007 are unconstitutional, without jurisdiction, illegal and having no legal effect.
