KARACHI: The Sindh High Court (SHC) has again issued notices to tax authorities, law officers of all the provinces, directing them to assist the court in respect of a controversy relating to chargeability of sales tax on services being provided in more than one province, particularly after 18th amendment in the constitution. The court issued the notice on a constitutional petition filed by Shell Pakistan Limited.
A two-member beach, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition. During the course of hearing, Salman Talibuddin, Additional Attorney General ans Syed Zainul Abidin Shah, Deputy Commissioner Sindh Revenue Board (SRB) have shown appearance and claim copy of instant petition and requested for time to assist the court on the subject controversy as recorded in order dated March 22, 2017, after their arguments, court once again issued notices to law officers of Punjab, Baluchistan, KPK and Islamabad for next date of hearing.
Court also continued the interim order and adjourned the matter for May 16, 2017. Court had restrained the respondents from taking any coercive action against the petitioner.
It needs to be pertinent here that on last date of hearing, after arguments of the learned counsel for the parties, court observed in its order that “it transpired that the controversy agitated through instant petition relates to chargeability of sales tax on services in respect of the amount of royalty and franchisor/ licensor and the amounts received by the petitioner from the retailors from all over the country. However, the dispute has arisen pursuant to impugned show cause notice issued by Sindh Revenue Board requiring the petitioner to make payment of sales tax on services in respect of entire amount received by the petitioner”.
Earlier, counsel for the petitioner argued that amount of sales tax on services in respect of transactions beyond the territorial jurisdiction of Sindh, as well as by FBR, cannot be demanded by SRB, he further submitted that the order to resolve such controversy, notices may be issued to the attorney general of Pakistan, advocate generals of all provinces, including Islamabad, who may assist this court in respect of a controversy relating to chargeability of sales tax on services being provided in more than one provinces, particularly after 18th amendment in the constitution.
