KARACHI: The Sindh High Court (SHC) on Tuesday directed tax authorities not to take any coercive action against M/s Continental Sweets over “extra tax” at the rate of 2 percent of the value of supplies (cake, biscuits, sweets etc) of Rs 804,768.
While the hearing the application, the SHC division bench, headed by Justice Munib Akhter, also issued notices to secretary Revenue Division, chief commissioner Inland Revenue, Regional Tax Office – II, commissioner Inland Revenue, Zone – II, and deputy attorney general directing them to file their respective comments on May 5, 2016.
Earlier, the petitioner’s counsel stated that the respondents issued a show cause notice on March 31, 2016 to the petitioner, asking him to pay “extra tax” at the rate of 2 percent of the value of supplies on (all confectionery items including cake, biscuits, sweets any meats) for the tax period October 2013 to February 2016 amounting to Rs 804,768 under sale tax special producer rules 2007 as amended vide SRO 896(1)2013
In the notice, it was also intended to impose default surcharge under section 31 (5) of the sales tax Act, 1990. The counsel argued that issues, raised in this petition, are already before the court in other matters and interim relief has been granted.
The petitioner’s counsel pleaded the SHC to set aside impugned notice and restrain the respondents from taking any coercive measures against the petitioner.