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M/s KM Steel Works moves SHC against suspension of sales tax registration

M/s KM Steel Works moves SHC against suspension of sales tax registration

KARACHI: The Sindh High Court (SHC) has directed the tax department to submit para wise comments on a constitutional petition filed by Khushi Muhammad Pehalwan, proprietor of M/s KM Steel Works against suspension of his sales tax registration. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, heard the petition.

During the hearing, counsel for the tax department sought time to submit para wise comments, therefore, the court granted him time and adjourned the hearing for May 24, 2017.

Earlier, counsel for the petitioner stated that he is engaged in the business of manufacturing of iron and steel items/ all kinds of towers, he submitted that it pertinent to mention here that there was no complaint, no show cause notice, not even any inquiry or investigation against the petitioner for violation in respect of tax fraud committed by him.

According to the petitioner, however, Commissioner Inland Revenue Zone-IV, Regional Tax Office-III dated 18/06/2016 passed an order and suspended his sales tax registration without shown any lawful reason and lawful authority.

Citing Chairman Federal Board of Revenue (FBR), chief commissioner Inland Revenue Regional Tax Office-III, commissioner Inland Revenue, Zone-IV Regional Tax Office-II and Commissioner Inland Revenue, Zone-IV Regional Tax Office-III as respondents, counsel pleaded the court may declare act of the respondents is illegal, mala fide and arbitrary.

He also pleaded the SHC to set aside impugned notice and restrain them from taking any coercive measures against the petitioner.