ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

C.P. No.D-1301 of 2021

___________________________________________________________________                                        Date                                      Order with signature of Judge 

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FRESH CASE:

1.     For order on CMA No.5399/2021 (Urgent).

2.     For order on CMA No.5400/2021 (Exemption).

3.     For order on CMA No.5401/2021 (Stay).

4.     For hearing of main case.

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19th February 2021

Mr. Shahab Sarki, Advocate for Petitioner alongwith Mr.Merajuddin, Advocate.

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1.         Urgency granted.

2.         Exemption granted, but subject to all just exceptions.

3&4.    Learned counsel for the petitioner submits that pursuant to an order dated 20.02.2020 passed by this Court in C.P. No.D-8294/2019 filed by the petitioner, directing the respondents to provisionally restore the Sales Tax Registration of the petitioner, the Commissioner Inland Revenue, Enforcement-I, Corporate Tax Office, Karachi vide order dated 19.01.2021 has restored the Sales Tax Registration, however, imposed a condition to the effect that the petitioner shall deposit an amount of Rs.6 Million, as determined by the Special Judge (Customs & Taxation), Karachi, within thirty (30) days of the restoration, failing which, the proceedings under section 21(2) of the Sales Tax Act, 1990, shall be initiated against the registered person as per law. Per learned counsel, the aforesaid condition placed by the Commissioner Inland Revenue is in violation of the recent judgment of this Court on the subject controversy as well as the provisions of section 21 of the Sales Tax Act, 1990, which can be invoked only if, there is a case of tax fraud and claim of input adjustment by the registered person on the basis of fake invoices. It has been prayed by the learned counsel that respondents may be restrained from taking any adverse action, including suspension of Sales Tax Registration, against the petitioner pursuant to the condition imposed on the aforesaid restoration order.   

Let pre-admission notice be issued to the respondents as well as D.A.G, to be served through first three modes, for 09.03.2021, when comments, if any, shall be filed with advance copy to the learned counsel for petitioner. However, till next date of hearing, respondents shall not take any adverse action against the petitioner pursuant to the condition imposed on the aforesaid restoration order.

 

 

      J U D G E

 

 

J U D G E

 

Farhan/PS