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SC seeks reply from FBR over levy of value addition tax under SRO 480 (1)/2007

SC seeks reply from FBR over levy of value addition tax under SRO 480 (1)/2007

KARACHI: The Supreme Court directed counsel for FBR to come prepare and submit final arguments on petition filed by collector Appraisement East, West, Air Freight Unit (AFU) and chairman FBR challenging SHC judgment regarding suspension of imposition levy of value addition tax @ 3% in terms of SRO 480 (1)/2007.

A two-member bench, comprising Justice Maqbool Baqar and Justice Sajjad Ali Shah was hearing the matter on April 5, 2019 in Karachi Registry.

Counsel for the petitioners argued that customs officials imposed levy of value addition tax @ 3% in terms of SRO 480 (1)/2007 on proprietor of M/s Akbar Corporation’s goods cellular mobile phones and satellite mobile phones etc , which was issued by the federal government by exercising the power under Sections 3. 7A, 71 and other provisions of the Sales Tax Act, 1990.

However, taxpayer was aggrieved and challenged said levy before the Sindh High Court (SHC) and SHC set aside impugned notification of customs department for imposition of levy of value addition tax @3%.

He argued that SHC has not considered that the Sales Tax Act, 1990 empowers the respondents for levy of tax in question, in this regard relevant SROs have been issued in adherence with the relevant provisions of the Sales Tax Act, 1990 and as stated above, for the enforcement of law of the Sales Tax Special Procedure Rules, 2007, were promulgated under the provisions of Section 71 of the Sales Tax Act, 1990.

Citing Muhammad Akbar, proprietor of M/s Akbar Corporation as respondents, applicants pleaded the court to grant the petitioners leave to appeal and set aside the impugned judgment of SHC.