KARACHI: The Sindh High Court (SHC) on Friday restrained the Federal Board of Revenue (FBR) and subordinate offices from recovering Rs 20 million sales tax from Annound Textile Mills Limited.
A two-member bench of the court comprising Justice Ahmed Ali Sheikh and Justice Aziz-ur-Rehman resumed hearing of a Constitutional Petition filed by Annound Textile Mills Limited.
The court also issued notices to FBR and Federation of Pakistan for further proceedings.
Senator Mian Raza Rabbani, counsel for the petitioner apprised the bench that the Law does not provide the shifting of the liability to pay the sales tax upon the manufactures / Textile Mills instead of registered buyers.
He said that impugned show cause notice issued by the FBR and subordinate officers under sales tax amensty scheme was illegal and un- constitutional.
He apprised the bench that the FBR cannot recover the sales tax of the period for which the Sindh High Court has already issued interim stay orders in respect of the sales tax on identical grounds.
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