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SHC directs officials to act as per law on petition filed by M/s Khafid Garments

SHC directs officials to act as per law on petition filed by M/s Khafid Garments

KARACHI: The Sindh High Court (SHC) directed customs officials to conduct themselves strictly in accordance with law and process consignments of the petitioner as per law on a petition filed by M/s Khafid Garments against suspension of sales tax registration and seeking consignments of finished fabrics.

On June 20, 2019, a two-member bench, headed by Justice Aqeel Ahmed was hearing the matter.

During the hearing, counsel for the petitioner argued that respondents without any notice suspended sales tax registration of the petitioner on December 21, 2018 on the vague allegation of misusing the status of the manufacture under SRO 1125(1)/2011 dated 31/12/2011.

He further argued that the petitioner was purportedly found engaged in commercial activities and that sales tax registration was managed without following due process of registration without local registration office and corporate regional tax office and as such petitioner was engaged in alleged tax fraud.

Counsel further argued that abrupt suspension of petitioner sales tax registration without proper investigation and notice as provided under section 11 (4) of the Sales Tax Act, 1990, is essentially malafide and unlawful action aimed at victimization, coercion and intimidation for achieving nefarious and illegal demand based on extraneous consideration and petitioner has been unlawfully restrained to continue his business activities to earn livelihood for his family in utter violation of Constitution of Pakistan.

Citing secretary Revenue Division, chief commissioner –IR Zone-VI, Corporate Regional Tax Officer and collector of Customs Appraisement West as respondents, court directed respondents to assess and release of the impugned consignment of finished fabrics as admissible to commercial imports of fabrics.