KARACHI: – The counsel for respondent Inland Revenue and petitioner Colgate Palmolive Pak Ltd were asked by a Sindh High Court bench here Thursday to assist on law point that whether the federal officers can levy Federal Excise Duty after 18 Th amendments to the Constitution of Pakistan, 1973.
The bench comprising Justice Sajjad Ali Shah and Justice Muhammad Junaid Ghaffar earlier heard counsel for petitioner who maintained that petitioner has no liability towards taxes and that show-cause issued to petitioner company by Commissioner Inland Revenue was illegal being without jurisdiction as after the 18th amendment to the Constitution of Pakistan taxes are now ‘a provincial subject’.
The bench asked the counsel for parties to address the court on law point that what would be the jurisdiction of revenue officers of the federal government after the recent amendment.
The petitioner challenged the issuance of show cause notice to the company. The petitioner maintains that they are engaged in production, manufacture and distribution of personal care products. The petitioner company maintains that it has complied with all rules and law including Federal Excise Act 2005 as well as Federal Excise Rules 2005 and hence is not guilty of any act, which attracts issuance of show-cause to them.
The petitioner prays to the court to declare the issuance of show cause notice as without jurisdiction and thus patently illegal.