SHC stays Sales Tax recovery notice by Adjudication Collectorate Karachi

KARACHI: A customs appellate bench of High Court of Sindh (SHC) comprising Justice Aqeel Ahmed Abbasi and Justice Mahmood A Khan on Monday restrained recovery notice for collection of Sales Tax on consignments released two and a half year ago.

Atlas Honda moved the court against issuance of show cause and recovery notices issued by Collector Adjudication, Pakistan Customs Karachi. Haider Ali Khan advocate appearing for the petitioner company maintained that the petitioner provides franchise services to its clients. He contended that customs can collect Sales Tax at import stage but action now after two and a half year of release of goods, it was not the jurisdiction of the customs. The counsel also referred to an stay already granted against identical notices issued to them by Lahore Customs.

The bench after initial hearing restrained respondent collectorate from any recovery till further orders.

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