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SHC seeks reply on petition filed by M/s Khawaja Spinning Mills

SHC seeks reply on petition filed by M/s Khawaja Spinning Mills

KARACHI: The Sindh High Court (SHC) directed customs officials to make sure filing of their comprehensive para-wise comments on a sales tax return application filed by Khawaja Spinning Mills Private Limited against impugned recovery notices of duty and taxes to the tune of Rs1,897,038.

A two-member bench heard the matter on September 07, 2018.

During the hearing, counsel for the applicant submitted that it imported a consignment of raw and ginned cotton and filed goods declaration according with law, however, show cause notice was issued to the applicant by customs officials and alleged that applicant claimed the benefits of SRO 1125(1)/2011 on the consignment and paid sales tax @ 2% and income tax @ 1%.

Counsel further argued that customs officials also alleged that it was not entitled to take the benefit of SRO 1125 (1)2011 in the light of the amending SRO 1561(1)2013. He also submitted that customs officials also claimed that applicant evaded the duty and taxes in the tune of Rs1,897,038. He argued that applicant moved petition before the appellant tribunal for alleged recovery notice; however, appellant tribunal dismissed its petition.

Citing Customs Appellant Tribunal, Additional Collector of Customs Adjudication, Collector of Customs Adjudication, Collector of Customs Adjudication-II, Collector of Customs Appraisement East, Deputy Director Group-IV, Customs Collectorate East as respondents, he pleaded the court to set aside impugned order of the appellant tribunal and suspended impugned recovery notice issued by customs officials.