KARACHI: The Sindh High Court (SHC) directed the tax authorities to file para-wise comments on a petition filed by M/s Fareed Engineering Works against increasing duty and taxes on a consignment of “overhead cranes and its accessories”.
A two-member bench headed by Justice Munib Akhtar was heard the petition.
During the hearing, Sohail Muzaffar Advocate filed power of attorney on behalf of the respondents/ custom department and sough time for submitting para-wise comments; therefore, the court granted the time and directed him to ensure submission of comments on next date of hearing i.e. November 04, 2016.
Earlier, counsel for the petitioner stated in its constitution petition that it is doing business of manufacturing and supplying of machinery and engineering works and it had made an agreement with Earlier, counsel for the petitioner stated in its petition that it is doing business of manufacturing and supplying of machinery and engineering works and it had made an agreement with the foreign supplier M/s Henan Mine Crane IM&EX Co, China for import of goods having description two overhead cranes and its accessories at the rate of $15, 640.00 and $20, 296.00, one for M/s Been and second for M/s Rali.
According to the petitioner, after the formalities importer filed goods declarations as per transactional value of 20,296.00, however, staff of the tax department enhanced the duty and taxes at the rate of $86, 420 illegally, arbitrarily and unlawful.
Citing Federal Board of Revenue (FBR) chairman and Model Custom Collectorate Port Qasim collector as respondents, the importer pleaded the court may declare that act of the respondents is illegal, arbitrary and of no legal effect.
The petitioner also pleaded the SHC may direct the respondents to release the consignment and restrain them from taking any coercive action against the petitioner.
