KARACHI: A divisional bench of High Court of Sindh (SHC) comprising Chief Justice Sajjad Ali Shah and Justice Zulfiqar Ahmed Khan on Wednesday disposed of a constitution petition challenging demand raised for 17 per cent Sales Tax (ST) on imported machinery.
The bench earlier heard counsel for the petitioner who said that never in the history 17 per cent Sales Tax was levied. He said that at the most 10 per cent tax could be levied. He said that earlier ST was at 5 per cent but later enhanced to 10 per cent.
Kashif Nazeer Advocate for Pakistan Customs citing relevant rules and schedules submitted that under relevant sections, 10 per cent ST is to be paid by all importers at import stage and 7 per cent by mean of cheques. He said that demand raised by the department is as per rules and laws.
The bench agreed to the contentions by the counsel for respondent department. The bench later deciding the petition ordered that consignment of the petitioner be released if he pays 10 per cent ST to Customs and deposit cheques of 7 per cent differential amount of ST.