High court orders restoration of sales tax registration of M/s Mohsin Plastic Works

KARACHI: The Sindh High Court has ordered Inland Revenue – Federal Board of Revenue (FBR) to provisionally restore sales tax registration of M/s Mohsin Plastic Works, Hyderabad and advised the company not to claim any input adjustment and sales tax refund till final orders are passed.

M/s Mohsin Plastic Works through their counsel Umar & Umar Law Associates approached the Court praying restoration of sales tax registration. Moreover, a proper show cause notice may be issued by the department before taking any adverse action.

Counsel for the Inland Revenue – FBR submitted that under instructions by the court, the sales tax registration of M/s Mohsin Plastic Works had been restored. However, it was suspended again in line with fresh Intelligence & Investigation reports that the company is a commercial importer and not a manufacturer.

Counsel of Umar & Umar Law Associates representing the company stated the company is available on the given address where-the manufacturing facility is available, which fact was earlier verified by the Inland Revenue Department.

It was prayed that the department may be directed to restore the sales tax registration and, before taking any adverse action, a proper Show Cause Notice may be issued and physical verification of manufacturing facility at the subject premises may be made. [the_ad id=”31605″] Counsel for the department did not oppose disposal of instant petition in the above terms. However, they requested that unless proper verification with regard to manufacturing unit is made, the company may be directed not to claim input adjustment and sales tax refund.

Accordingly, instant petition is disposed of direction to Inland Revenue to provisionally restore sales tax registration of the company and issue proper Show Cause Notice, after, physical verification of the premises. However, till final orders are passed, the company will not claim any input adjustment and sales tax refund. [the_ad id=”31605″]

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