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SHC restrains customs officials from taking action against M/s Atlas Honda

SHC restrains customs officials from taking action against M/s Atlas Honda

KARACHI: The Sindh High Court (SHC) directed customs officials that they shall not pass any final adverse order pursuant to impugned show cause notice till next date of hearing on a constitutional petition filed by M/s Atlas Honda Limited against issuing another show cause notice dated August 20, 2020 for recovery of allegedly sales tax, income tax etc.

On 4 September 2020,  a two-member bench, headed by Justice Aqeel Ahmed Abbasi also issued pre-admission notices to the customs department and directing them to file their respective para wise comments on next date of hearing.

During the hearing, Hyder Ali Khan advocate argued on behalf of the petitioner that “the petitioner has impugned the show cause notice issued by the collector customs (adjudication-II) Karachi, whereby, according to learned counsel for the petitioner, in respect of the consignment, which was duly assessed for duty and taxes during the financial year 2008, a show cause notice has been issued requiring the petitioner to make payment of sales tax, income tax along with customs duty on the franchise services, is beyond the jurisdiction of customs authorities.

He submitted that similar show cause notice for the earlier period and earlier consignment was issued by the same which has been assailed by the petitioner by filing constitutional petition wherein, notice have been issued to the respondents, and respondents have been directed not to finalize such proceedings pursuant to such show cause notice.

Counsel stated that however, similar show cause notice has now been issued, in the same set of allegation, hence request that notice of instant petition may also be issued to the respondents as well as DAG and office may be directed to fix aforesaid petition along with instant petition and respondents may also be directed not to pass any final adverse order against the petitioner pursuant to impugned show cause notice.