KARACHI: The Commissioner Inland Revenue Zone-I, Large Taxpayers Unit, approached the Sindh High Court (SHC) challenging the impugned judgment of the Commissioner Inland Revenue Appeals-I over recovery of Rs15.1million in respect of Sales Tax from M/s Dawlance Private Limited.
The counsel for applicant stated in his special customs reference application that during the audit of the records of M/s Dawlance Pvt Ltd Karachi, it was observed that the registered person has unlawfully claimed and adjusted the amount of input tax of Rs15.1million against the invoices issued by the suppliers who have subsequently been inactive/blocked by the federal government which is violation of Section 7, 8 & 73 of the Sales Tax Act-1990 read with rule 12 (5) of the Sales Tax Rules-2006.
According to the applicant, a show cause notice was issued to said respondent for recovery of sales tax of Rs15.1million with the default surcharges under Section 11 (2), 34 & 36 (1) of the sales tax act-1990. Being aggrieved, respondent approached the Commissioner Inland Revenue Appeals-I and filed an appeal which was allowed by the CIR Appeals-I without considering law and facts.
Citing M/s Dawlance Pvt Ltd Karachi as respondent, applicant pleaded with the court to set aside the impugned order of the authorities concerned.