KARACHI: The Sindh High Court (SHC) has directed the tax authorities to file comments on a petitions filed by Gadoon Textile Mills Limited and Fazal Textile Mills Limited against the impugned show cause notices.
A two-member bench, headed by Justice Irfan Sadat Khan was hearing the petition. During the hearing, counsel for the department requested for some time to submit para-wise comments. Therefore, the court granted time and adjourned hearing for November 30, 2016.
The court also continued interim order, which made earlier on next date of hearing in which court had restrained the respondents from taking any coercive action against the petitioners.
Earlier, the counsel for the petitioners stated that petitioners are doing textile business according with law and fulfilling all the requirements and paying all liabilities regularly; however, Customs Adjudication- II has issued impugned show cause notices dated May 29, 2015 and June 01, 2015 for alleged evasion of taxes through misuse of SRO 1125(1/2001) dated December 31, 2011 and amendment by way of SRO 154 (1) / 2013 dated February 28, 2013.
Citing Ministry of Finance secretary, Customs Adjudication-II commissioner, Large Taxpayers Unit (LTU), Karachi chief commissioner as respondents, the petitioners pleaded the SHC may set aside impugned show cause notices and during the pendency of this petition the proceedings initiated by the respondents shall remain suspended. The petitioners also pleaded the court may restrain them from taking any coercive action against the petitioners.
