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SHC bars customs officials to take any action against M/s Naudero Sugar Mills

SHC bars customs officials to take any action against M/s Naudero Sugar Mills

KARACHI: A division bench of the Sindh High Court (SHC) restrained customs officials from enforcement of recovery of impugned demand notice which is subject matter of appeal before the Commissioner Appeals Inland Revenue in the instant case on a constitutional petition filed by M/s Naudero Sugar Mills Pvt Ltd.

On 20 November 2020 during the hearing, Nadeem Ahmed Dawoodi appeared on behalf of the petitioner and argued that an order passed under section 161 (1) of the income tax ordinance, 2001 for the tax year 201, petitioner has filed appeal along with stay application before the Commissioner Inland Revenue Appeals –IV, Karachi, however, no order has been passed thereon, whereas, respondents have initiated recovery proceedings by adopting coercive measures.

Counsel argued that respondents may be restrained from enforcing the recovery of impugned demand till final decision of the appeal by the Commissioner Appeals in view of the earlier orders passed by this court in similar petitions.

After the hearing, the court issued pre-admission notices to respondents as well as deputy attorney general for a date to be fixed after four weeks, when comments, if any, shall be filed with advance copy to learn counsel for the petitioner.

Court observed in its order that “however, till next date, respondents shall not enforce the recovery of impugned demand, which is subject matter of appeal before the Commissioner Appeals Inland Revenue in the instant case”.

Earlier, secretary Ministry of Law, chairman FBR, CIR Enforcement-I, LTU-II/ Medium, Deputy CIR Unit-4, Range-B Enforcement-I LTU-II as respondents, petitioner pleaded the court to declare that recovery of disputed tax liability of Rs50,375,404 created unjustified and order passed under 161/205/124 of income tax ordinance 2001 dated June 30, 2020 and restrain them from taking any adverse action against the petitioner till final order in this case.