KARACHI: The Sindh High Court (SHC) directed parties to conclude arguments on a constitutional petition filed by M/s Hamdam Papers against a show-cause notice issued by Commissioner Inland Revenue Zone-IV, Large Taxpayers Unit-01, Karachi with the intention to get exemption certificates revoked, which were issued under section 148, 153 (1) on the basis of false and frivolous/fraudulent declaration.
On Friday, a two-member bench heard the matter. During the hearing, counsel for the parties sought time to complete arguments; therefore, the court granted time and adjourned the matter.
During the hearing, counsel for the petitioner stated in its constitutional petition that petitioner is private limited company and engaged in the business of manufacturing, cutting, converting or paper and paper products as well as manufacturing of exercise books, letterhead, writing pad etc and always fulfills all the legal formalities as per law.
He argued that on May 4, 2018, a show-cause notice was issued to the petitioner on various allegations with the intention to amend the sales tax returns e-filed by the petitioner for tax period from July 2014 to June 2017 and directed petitioner to pay illegal and unjustified sales tax liability of Rs309,679,974 and a show-cause notice has also been issued to the petitioner with the intention to retrospectively cancel and revoke exemption certificate.
Citing Secretary Ministry of Law, chairman Federal Board of Revenue, Commissioner IR Large Taxpayer Unit-I, and others as respondents, counsel for the petitioner pleaded that show-cause notice may kindly be suspended with directions to respondents to produce documentary evidence available against the petitioner on the basis of which it has alleged that exemption certificate was obtained on the basis of false and frivolous/fraudulent declaration.
He also pleaded the court may restrain them from taking any coercive action against the petitioner till final order in this petition.