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M/s Ambreen Glass Industries, others challenges SRO 509(1)/2013 in SHC

M/s Ambreen Glass Industries, others challenges SRO 509(1)/2013 in SHC

KARACHI: M/s Ambreen Glass Industries, M/s Siddique Glass Bangles Works and others have moved the Sindh High Court (SHC), challenging impugned SRO 509(1)/2013 dated 12/06/2013 requiring the petitioner’s mills to pay an extra amount of sales tax at the rate of 5% of the total billed amount of Sui Southern Gas Company and Hyderabad Electric Supply Company in addition to the tax payable under section (1) of section 3 of the Sales Tax Act 1990.

In separate constitutional petitions filed by M/s Ambreen Glass Industries, M/s Siddique Glass Bangles, M/s Al-Gilani Glass Industries, M/s Data Glass Bangles Works, M/s Ejaz Glass Industries, Abdul Zaheer Bangles Works, M/s Shafqat Bangles and others, counsels submitted that petitioners are individuals persons and fall within the territorial jurisdiction of chief commissioner tax office Hyderabad.

They argued that petitioner’s mills are manufacturer of glass bangles and the supply of finished product which is exempt under section 13 read with item no 29c of sixth schedule to the sales tax act, 1990 from the levy of sales tax, hence is not under obligation to get registered with Federal Board of Revenue (FBR), however, tax department issued SRO 509(1)/2013 dated 12/06/2013 requiring the petitioners’ mills to pay an extra amount of sales tax at the rate of 5% of the total billed amount of Sui Southern Gas Company and Hyderabad Electric Supply Company in addition to the tax payable under section (1) of section 3 of the Sales Tax Act 1990 illegally.

Citing Secretary Revenue Division, MD Sui Southern Gas Company, CEO Hyderabad Electric Supply Company, the chief commissioner Inland Revenue Regional Tax Office (RTO) Hyderabad as respondents, they pleaded the court may declare that said SRO is illegal, unlawful and no legal effect.

They also pleaded the court may direct the respondents not to levy and charge further tax at the rate of 2% and extra sales tax at the rate of 5% on electricity meters.