KARACHI: M/S Sawera Industries Cotton Ginning Pressing Factory and Oil Mills filed an application in the Sindh High Court (SHC) against SRO No 188 (1)/2015 requiring the petitioner to pay the amount of Rs 6 per 40 kilogram on all in-house and outside supply of cottonseed.
The petitioner stated that it has been running a business of ginned cotton and oil mills which is seasoned activity and manufacturing cotton lint, cottonseed, oil cake and cottonseed oil and paying all leviable taxes properly.
According to the petitioner, a dispute of payment of Rs 6 per 40kg on supply of cottonseed arose when the Revenue Division secretary issued SRO NO 188 (1)/2015 on March 5, 2015 binding the petitioner to pay the amount of Rs 6 on all in-house and outside supply w.e.f July 1, 2014 and onwards.
The counsel for petitioner stated that his client is a cotton ginner who purchases raw phutti and after manufacturing process, it obtains two products, one is cotton lint and the other is cottonseed. The sales tax is paid on electricity used in the process of manufacturing is in terms of section 7 of the Sales Tax Act, 1990. However this right has been deprived from the petitioner through issuance of said SRO, which is illegal and without any jurisdiction.
Citing Revenue Division secretary; the Hyderabad Regional Tax Office (RTO) Inland Revenue (IR) chief commissioner, and the IR Enforcement & Collecting Unit-X deputy commissioner; as the respondents, the petitioner asked the court to declare the said SRO as unconstitutional and illegal.