Sindh High Court (SHC) has ordered the Large Taxpayers Unit (LTU), Karachi to reinstate the sales tax registration of Shell Pakistan Limited (SPL) with immediate effect. This was informed by SPL in its official statement released here on Friday. The company while confirming to have received a notice from FBR to explain tax discrepancy by April 30, 2018 clarified that the relevant amount of tax had been paid in full therefore there was no shortfall in the payment of tax.
However, FBR proceeded with the suspension of SPL's GST license before the stipulated time given to the company to respond and termed it as unjustified.
Therefore, the matter has been taken into the Sindh High Court, which suspended FBR directive and ordered to reinstate the license of the company with immediate effect.
It said that SPL complied with all statutory requirements of the country and strived to conduct its business in accordance with the applicable laws of Pakistan and affirmed to work closely with the tax authorities in order to resolve the issue.
Meanwhile, LTU, Karachi stated that Sindh High Court's order for restoration of SPL's GST registration was in public interest but not on the factual position. The case has been fixed for April 30, 2018 as the SPL has been declaring suppressed sales in sales tax returns since November 2016 and evaded tax to the tune of Rs 3 billion.
Moreover, it said that FBR tried to keep close liaison with taxpayers especially large taxpayers but it didn't mean to tolerate tax evasion. "The figures of evasion have been obtained from different declarations made by taxpayer itself. Although the sales tax registration of the Shell Pakistan Limited has been restored, the proceedings of tax department will remain continued," it added.
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