SHC issues pre-admission notices for March 18 in Sales Tax case

KARACHI: Pre-admission notices were issued for March 18 to the Chairman FBR, Member (Sales Tax-Policy) and Commissioner Sales Tax in a petition filed by M/S Imperial Trading Corporation and others through law firm Franklin Law Associates.

A counsel from the firm appearing before a division bench of High Court of Sindh comprising Justice Aqeel Ahmed Abbasi and Justice Rashida Asad submitted that petitioners are retailers and suppliers of All Pakistan Tiles and Sanitary Products who make payment of  all taxes including Sales Tax at import stage. The petitioners have more than one outlet for display of tiles and sanitary products therefore it is not possible for them comply with the requirement of online computerized  integrated system with FBR as the dealer  comply with one  retailer in terms of Rules 150 ZEA and 150 ZEB of the Sales Tax Rules 2006 read with SROs 1203 (1) of 2019 and 1360 (1) 2018, submitted the counsel from Franklin Law Associates.

It was further submitted that respondent Sales Tax officers without realizing the peculiar nature of transactions of Petitioners issued Show Cause Notices to the petitioners to get themselves linked and integrated with FBR Portal and in case of default, they would pass ex-parte orders and would seal the premises of the petitioners.

The counsel informed the bench that show cause notices have been issued and duly responded and that petitioner as well as All Pakistan Tiles Association has filed representation before the Chairman FBR with the request to exclude the  petitioners from the purview of retailers and from application of aforesaid Sales Tax Rules 2006.

The counsel also prayed for restraining the respondents from passing any coercive action till decision in their representation dated 17-2-2021 pending before Member (InLand Revenue- Policy) FBR, Islamabad.

The bench after detailed hearing issued pre-admission notices to the respondents for March 18 while seeking comments with advance copy to the petitioner side. The bench also restrained the respondents from taking any coercive action against the petitioners till next date of hearing.

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