KARACHI: The Sindh High Court (SHC) issued notices to the customs officials directing them to file their para wise comments on a sales tax return petition filed by M/s Khawaja Spinning Mills Private Limited against impugned recovery notices of duty and taxes amounting to Rs1,897,038.
A two-member bench, headed by Justice Aqeel Ahmed Abbasi was hearing the matter on August 17, 2018.
During the hearing, counsel for the petitioner submitted that it imported a consignment of raw and ginned cotton and filed goods declaration according to law, however, show cause notices was issued to the petitioner by customs officials and alleged that petitioner claimed the benefit of SRO 1125(1)/2011 on the consignment and paid sales tax @ 2% and income tax @ 1%.
Counsel argued that customs officials also alleged that it was not entitled to the benefits of SRO 1125 (1)2011 in the light of the amending SRO 1561(1)2013, he also submitted that customs officials also claimed that petitioner evaded the duty and taxes in the tune of Rs1,897,038.
He argued that petitioner moved petition before the appellant tribunal for alleged recovery notice, however, appellant tribunal dismissed its application.
Citing Customs Appellant Tribunal, Additional Collector of Customs Adjudication, Collector of Customs Adjudication, Collector of Customs Adjudication-II, Collector of Customs Appraisement East, Deputy Director Group-IV Customs Collectorate East as respondents, he pleaded the court to set aside impugned order of the appellant tribunal and suspended impugned recovery notice issued by customs officials.
