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SHC directs Customs to consider request of M/s Hadi Int’l for restoration of ST registration

SHC directs Customs to consider request of M/s Hadi Int’l for restoration of ST registration

KARACHI: The Sindh High Court (SHC) directed Customs officials to consider request of the petitioner for restoration of its sales tax registration accordance with law on a constitutional petition filed by M/s Hadi International.

The company filed the petition, seeking restoration of its sales tax registration suspended by officials of the Federal Board of Revenue (FBR) due to its involvement in alleged tax evasion.

While the hearing of petition, on Thursday, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also directed them to file their respective para wise comments on next date of hearing.

During the hearing, counsel for the petitioner stated in his constitutional petition that petitioner is engaged in the lawful import of general items and various garment products and is registered with the sales tax department since 2005, and has been filing his income tax and sales tax returns and paying all duties and taxes without default.

He argued that the petitioner received a suspension order dated 6/6/2018 by the officials of FBR that by virtue of section 21 (2) of the Sales Tax Act, 1990, the sales tax profile of the petitioner suspended due to his involvement in alleged tax evasion.

He submitted that same respondents also issued show-cause notice under section 2 1(2) stating that why the sales tax profile may not be blacklisted from the date of registration.

Citing Sectary Ministry of Revenue, Chairman Federal Board of Revenue (FBR), the Commissioner Inland Revenue Zone-i, RTO-III Karachi as respondents, the petitioner pleaded the court may declare that act of the respondents as illegal, mala fide and arbitrary.

Petitioner is also pleaded the court may restore its sales tax registration and restrain them from taking any coercive action against the petitioner till final order in this petition.