KARACHI: Notices were issued to the Deputy Attorney General for Pakistan and other respondents for Jan 01 by a division bench of High Court of Sindh (SHC) comprising Justice Munib Akhtar and Justice Zulfiqar Ahmed Khan here on Wednesday.
The bench earlier heard counsel for petitioner Super Star Cotton Ginning and Factory and Oil Mills, Mirpurkhas road, Hyderabad challenging a demand of rupees 6 per 40 kilograms of Phutti on supply of Cotton Seed.
The new tax was imposed under SRO 188 (1) of 2015 dated 5-3-2015 on all in-house and outside supplies. A number of petitions on identical issue are pending adjudication. The petitioners maintain that levy of extra advance tax is illegal and Inland Revenue (IR) department is violating the exemption granted to cotton mills on raw cottonseed.
The bench after hearing initial arguments ordered issuance of notices to DAG for Jan 01. The respondents include Chairman FBR who is also the Secretary Revenue division, Chief Commissioner (IR) Regional Tax Office, Hyderabad and Director General IR, Hyderabad.