KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from fulfilling any demand from the petitioners in term of SRO No 188 (1) 2015 which had asked the petitioners’ mills to pay Rs 6 on every in-house and outside supply of 40 kilogram.
The SHC bench comprising Justice Syed Hasan Azhar Rizvi and Justice Zafar Ahmed Rajput was hearing the petition filed by M/s Hameer Faqee Cotton Ginners and Oil Mills, Sanghar and others. The bench also issued notices to tax authorities and deputy attorney general to submit their para wise comments in the next hearing.
Earlier, petitioners submitted that they are registered parties with the federal government for income taxes, sales taxes and have been running business of ginned cotton and oil mills which is seasoned activity and manufacturing cotton tint, cottonseed and paying taxes properly.
However FBR Islamabad issued SRO No 188 (1) 2015 on 5th March 2015 asking the petitioners mills to pay the amount of Rs6 per 40 kilograms on all in-house and outside supllying w.e.f 1st July 2014 to onwards without any input tax adjustment.
The petitioners stated that petitioner’s mills are exempted from such taxes. Citing Secretary Revenue, Chief Commissioner (IR) Regional Tax Officer, Deputy Commissioner IR Enforcement & Collection Unit – X and others, as the respondents, the petitioners requested the court to restrain to the respondents and their officers from taking any adverse action against them whatsoever until final verdict of this court.
