IN THE HIGH COURT OF SINDH AT KARACHI

PRESENT:

     Mr. Justice Aqeel Ahmed Abbasi

      Justice Mrs. Rashida Asad

C. P. No.D-1174 of 2021

M/s. SAMAG Corporation…….…………………………………….Petitioner

Versus

Federation of Pakistan & 2 others…………..…………………..Respondents

Petitioner                   :           Through Mr. Muhammad Yousuf, Advocate                                                       alongwith Mr. Naveed-ul-Haq, Advocate.

                                    :           Nemo for the Respondents

Date of Hearing        :           16.02.2021

Date of Short Order :           16.02.2021

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O R D E R  

            Through instant petition, the petitioner has impugned a Show Cause Notice dated 14.12.2020 issued by the Assistant Commissioner Inland Revenue, Unit – 06, Audit-I, Regional Tax Office-I, Karachi for having been issued without lawful authority. According to learned counsel for the petitioner, in the absence of any material or evidence the petitioner has been confronted with the allegation of tax fraud, and has been threatened imposition of penalty and default surcharge in respect of the transactions pertaining to the Tax Year July 2013 to June 2019. It has been prayed that impugned Show Cause Notice may be declared as illegal and unlawful.

2.         From perusal of the record and the contents of the impugned Show Cause Notice, it appears that the impugned show cause notice has been duly responded by the petitioner in writing, whereafter, further correspondences appears to have been exchanged between the petitioner and the respondent and the matter is still subjudice before the statutory forum for decision in accordance with law. Petitioner is at liberty to raise all factual and legal grounds as agitated through instant petition, whereas, any interference by this Court would amount to preempt the decision by the statutory authority in accordance with law.

3.         The practice of approaching this Court by filing Constitutional Petition under Article 199 of the Constitution, while abandoning the statutory forums provided for resolution of the dispute and redressal of the grievances by filing an Appeal before the relevant statutory forums provided under the law, has been seriously deprecated through various judgments of this Court as well as by the Hon’ble Supreme Court in large number of cases, as it amounts to frustrate the legal proceedings before the Tax Authorities, who are under legal obligations to pass appropriate order in accordance with law. Moreover, on mere issuance of Show Cause Notice, which prima facie does not suffer from any jurisdictional defect or patent illegality Constitutional Petition is not maintainable. Reliance in this context can be placed in the cases of Roche Pakistan Ltd. v. Deputy Commissioner of Income Tax and others [2001 PTD 3090]; Sitara Chemical Industries Ltd. v. Deputy Commissioner of Income Tax [2003 PTD 1285]; Pakistan Mobile Communications Ltd. v. Sindh Revenue Board and 2 others [2014 PTD 2048]; and Messrs Maritime Agency (Pvt.) Ltd. v. Assistant Commissioner-II, SRB and others [2015 PTD 160].      

4.         While confronted with hereinabove legal position, learned counsel for the petitioner could not submit any reasonable explanation, however, submitted that proposed treatment by the respondent is totally illegal and contrary to the facts of the case of the petitioner. We are of the view that instant petition is not maintainable for having been filed on mere issuance of Show Cause Notice, which prima facie does not suffer from any jurisdictional defect or patent illegality, whereas, the objections raised by the petitioner through instant petition can be agitated before the statutory forums while submitting the response/reply to the impugned Show Cause Notice, which shall be considered by the respondents, who shall pass appropriate order strictly in accordance with law. Accordingly, instant petition was dismissed in limine vide our short order dated 16.02.2021 and these are the reasons of said short order.

5.         However, it is clarified that the dismissal of instant petition in the above terms would not effect the merits of the case of petitioner, which shall be considered by the respondents, who shall pass appropriate order in accordance with law. 

           J U D G E

                   J U D G E

Farhan-PS