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SHC seeks comments on petition filed by M/s Hamdam Paper Products

byM.B. Rana
12/06/2018
in Karachi, Latest News
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KARACHI: The Sindh High Court (SHC) issued notices to the Customs authorities and deputy attorney general, directing them to file their respective para wise comments on a constitutional petition filed by M/s Hamdam Paper Products Pvt against a show-cause notice issued by commissioner Inland Revenue Zone-IV, Large Taxpayers Unit-01, Karachi with the intention to revoke and cancel exemption certificates issued under Section 148, 153 (1) on the basis of false and frivolous/fraudulent declaration.

Directives were issued by a division bench, headed by Justice Aqeel Ahmed Abbasi on Monday’s hearing in Sindh High Court.

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During the hearing, counsel for the petitioner stated in its constitutional petition that petitioner is a private limited company and engaged in the business of manufacturing, cutting, converting or paper and paper products as well as manufacturing of exercise books, letter head, writing pad etc and always fulfills all the legal formalities according with law.

He argued that on May 4, 2018 a show-cause notice was issued to the petitioner on various allegations with the intention to amend the sales tax returns e-filed by the petitioner for tax period from July 2014 to June 2017 and directed petitioner to pay illegal and unjustified sales tax liability of Rs309,679,974 and a show-cause notice has also been issued to the petitioner with the intention to retrospectively cancel and revoke exemption certificate.

Citing Secretary Ministry of Law, Chairman Federal Board of Revenue, Commissioner IR Large Taxpayer Unit-1, and others as respondents, counsel for the petitioner pleaded that the show-cause notice may kindly be suspended with directions to respondents to produce documentary evidence available against the petitioner on the basis of which it has been alleged that exemption certificate were obtained on the basis of false and frivolous/fraudulent declaration.

He also pleaded the court may restrain them from taking any coercive action against the petitioner till final order in this petition.

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