KARACHI: An appellate bench of High Court of Sindh (SHC) on Wednesday adjourned hearing of a Special Sales Tax Reference Application filed by Sindh Revenue Board against Karachi Port Trust.
The counsel appearing for the KPT submitted that KPT is a federal government entity under administrative control of federation and hence provincial taxes are not leviable.
The counsel appearing for the petitioner SRB said that KPT is a provincial authority. It has allotted a berth to a company which is carrying on commercial activity and therefore it can be taxed.
The counsel relied on a case law and said after Supreme Court judgment, KPT whenever entered into an agreement it made the other party responsible to pay the taxes.
The bench after a short hearing asked the respondent KPT ‘s lawyer to go through the case law and argue the case on next hearing.