KARACHI: The Sindh High Court (SHC) restricted tax department from recovery till next date of hearing on a constitutional petition filed by M/s Master Motor Corporation Pvt Ltd against demand notice of alleged payment of the evaded sales tax along with penalty issued by Assistant Commissioner Inland Revenue Audit Unit-IV, Zone-II LTU Karachi.
A two-member bench, headed by Justice Aqeel Ahmed Abbasi heard the petition. Court also directed tax department and deputy attorney general to file their respective para wise comments on next date of hearing, court adjourned the matter for May 18, 2017.
Earlier, counsel for the petitioner stated in its constitutional petition that it is a private limited company and is engaged in the lawful business of assembling and sales of light trucks of Chinese brand and always pay the all liabilities properly.
According to the petitioner, above mentioned respondent issued a show cause notice to the it under section 4 (2) of the Sales Tax Act 1990 alleging a few discrepancies, therefore, petitioner submitted its reply along with all the relevant documents, having found the reply unsatisfactory, the officials of the tax authority passed requiring the petitioner to pay the evaded sales tax along with penalty.
He further submitted that being aggrieved, it moved an appeal before Commissioner Inland Revenue Appeals-II Karachi which is still pending for disposal, and however, during pendency of such appeals, petitioner is being threatened by officials of the tax department.
Citing Secretary Ministry of Finance, Chairman Federal Board of Revenue (FBR), Commissioner Inland Revenue Appeals-III, Commissioner Inland Revenue Zone-II LTU, Assistant Commissioner Inland Revenue Audit Unit-IV, Zone-II LTU Karachi as respondents, petitioner pleaded the court may restrain them from taking any coercive action against the petitioner and direct Commissioner Inland Revenue Appeals to decide its appeal within reasonable period.