SHC dismisses stay application by Shaheen Air International

KARACHI: Justice Junaid Ghaffar of High Court of Sindh on Monday dismissed a stay application filed by Shaheen Air International (SAI) seeking stay against recovery notice of Rs200 million as Sales Tax dues.

Earlier in a hearing, a counsel appearing for the plaintiff told the court that their client is unable to deposit Rs 2.2 billion, 50 per cent of disputed amount of custom duties etc as ordered by the court on previous hearing.

The bench was hearing a suit filed by the SAI challenging tax on aircrafts it took on wet lease. The plaintiff side maintains that as the aircrafts were brought in temporarily, no tax etc can be levied.
Haider A Shaikh advocate, 0counsel for defendant Pakistan Custom and others maintain that if aircrafts are held back for more than six months, taxes etc are applicable. He informed the bench that department has proceeded against plaintiff under section 202 of Sales tax Act and solicited orders for attachment of properties of the plaintiff in default.

The single judge allowing the request directed the Nazir to release bank guarantees to Pakistan Customs while ordering proceedings to attach the properties or assets of the airline.

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