ISLAMABAD: Renowned mobile phone company, M/s Telenor Pakistan, has submitted a reply of show cause notice issued by Collector Customs Adjudication Islamabad.
In the reply, the company stated that the SRO 575 (1) 2006 dated 5th June 2006 was applicable on imports during the period when goods were imported. It is pertinent to mention here that M/s Telenor Pakistan (Private) Limited Islamabad had imported 595 consignments of repaired plant, machinery, equipment, apparatus and parts and cleared the same under the benefit of Sixth Schedule of the Sales Tax Act, 1990.
The inadmissible benefits resulted in non-realization of government revenue amounting to Rs 16.83 million. M/s Telenor Pakistan Private Limited has further stated that Federal Board of Revenue, Islamabad, already clarified the issue hence the instant case may be decided in the light of the clarification that the show cause notice conveying the intent to stifle and stultify the benefit of Sixth Schedule to the sales Tax Act, 1990, is against the facts and provisions of law applicable thereon.
The reply further stated that the vested rights of the company cannot be taken away by making an erroneous interpretation of the facts and laws of the case.
That the current proceedings lack independent and conscious application of the mind as the same are triggered on the basis of some audit observation and may result into a serious flawed legal architecture if not dropped on the basis of following legal and factual submissions.