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The Federal Government has sought from Supreme Court a review visit to its order rejecting the adjustment of a tax refund entitled to Redco Textile Mills against liabilities of Redco Pakistan Limited, another concern owned by the same family, in 1996.
The amount involved was over Rs 56 million which the Mills claimed was in excess of 'input' over 'output tax'. A former senator, Saifur Rahman Khan, and his family members own the Redco Group of Companies.
Saifur Rahman was head of the Ehtesab Bureau and had launched investigations against the leaders of Pakistan People Party's government during the rule of Nawaz Sharif.
A petition filed by Raja Abdul Ghafoor questions the Supreme Court judgement on the common ownership of the Redco companies and argued that the tax authorities had acted within the meaning of Section 40 and 48 of the Sale Tax of 1980. As such the Redco Group could not question the action without seeking proper remedy available under the law.
A division bench composed of Justice Mian Muhammad Ajmal (since retired) and Justice Hamid Ali Mirza had rejected the action of Collector of Sales Tax on the ground that the adjustment ordered was beyond its jurisdiction.

Copyright Business Recorder, 2004

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