Suit by Shaheen Air dismissed

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

As the suit came up hearing on Wednesday, Haider Shaikh advocate representing defendant Federal Boar of Revenue submitted that plaintif has failed in depositing 50 per cent of the amount in dispute. He pointed out that instead in an earlier 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 the suit filed by Shaheen Air International 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, counsel 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 in view of judgment by the Supreme Court aimed at curbing un-necessary litigation dismissed the suit filed by Shaheen Air International. [the_ad id=”31605″]

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