SHC stays recovery of service charges by SRB in petition by NTDC

KARACHI: Sindh Revenue Board (SRB) was restrained from collecting service tax from National Transmission & Distribution Company (NTDC).

The order came from a customs appellate bench of High Court of Sindh (SHC) comprising Justice Aqeel Ahmed Abbasi and Justice Mahmood A Khan who heard Khalid Javed Khan advocate appearing for petitioner company. The counsel contended that the petitioner company was a bulk power supply company and electricity supplied is a “good” and not a service. He further contended that power or electricity supply including transmission and distribution is a federal subject. SRB can collect service charge and therefore petitioner is out of ambit of the SRB.

The bench after initial hearing adjourned further proceedings while issuing notice to the respondents including SRB while restraining it from any coercive recovery till further orders.

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