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SHC bars tax authorities from taking any coercive action against Equity Textiles

SHC bars tax authorities from taking any coercive action against Equity Textiles

KARACHI: The Sindh High Court (SHC) restrained the tax authorities from taking any coercive action against the petitioner on an appeal filed by M/s Equity Textiles Ltd against impugned show cause notice for selection for audit without giving any opportunity of hearing.

A single-member bench, comprising Justice Nadeem Akhtar also issued notices to the tax authorities and deputy attorney general of Pakistan and directing them to file their comments on next date of hearing, court adjourned the hearing for January 12, respective 2016.

During the hearing, the counsel for the plaintiff company argued that it is aggrieved by the notice dated 27/06/2014 and show cause notice dated 08/04/2016 issued by the defendants under section 25 and section 11, 25, 33 & 34 of the sales act 1990, whereby plaintiff has been informed that it case has been selected for audit, therefore, detailed objections to this notice were filed by the plaintiff, but instead of giving any opportunity of hearing, another show cause notice dated 03/10/2016 was issued by the defendants.

Counsel further argued that the impugned action by the defendants without assigning any reason for selecting the plaintiff’s case for audit and without affording any opportunity of hearing to it, is not only arbitrary and mala fide, but is also against the well-settled principles of natural justice.

Citing Sectary Revenue Division, Chairman Federal Board of Revenue, Commissioner Inland Revenue Zone-01 RTO, Assistant Commissioner Inland Revenue Audit-3 Zone-III Large Taxpayer Unit –II and others as respondents, plaintiff pleaded the court may declare act of the respondents is illegal and mala fide.

Importer also pleaded the court may also restrain them from taking any coercive action against it and set aside impugned show cause notice issued to the plaintiff.