Private TV channel liabilities: SHC asks respondents to issue fresh notice for reconciliation

High Court of Sindh Friday disposed of a petition filed by Geo Television against Sales Tax Department directing the respondents to issue a fresh notice for reconciliation of their (Geo TV) sales tax liabilities.
The petitioner filing a constitutional petition through counsel Barrister Faroogh A Nasim challenged the freezing of accounts of M/s Independent Media Corporation (Pvt) Limited owning the Geo Television.
When the petition came up for hearing Friday before a division bench comprising Justices Mohammad Ather Saeed and Ms Qaiser Iqbal, Deputy Collector, Sales Tax, Sanaullah Abro stated that in compliance of the SHC directives, the impugned orders have been withdrawn.
Earlier, on previous date of hearing the same bench restrained the Central Board of Revenue and other respondents from recalling the CBR letter under which the Geo channel owners, M/s Independent Media Corporation (Pvt) Limited, claim to have satisfied their sales tax liability. The CBR reassessed the sales tax due by the channel at Rs 285 million and ordered freezing of its owners' bank accounts when it failed to pay off the amount.
The counsel for petitioner maintained that company had already discharged its sales tax liability in terms of a CBR letter and no amount was outstanding against it.
The counsel said the subsequent CBR order was an infringement of the freedom of expression and trade and the right to hold property guaranteed by Articles 17, 18 and 23 of the Constitution. The bench sought the respondents' comments by June 29 (today) suspending the impugned order in the meantime.
Today the bench after statement by the ST department disposed of the petition as infructuous but left it open to ST department to proceed further according to law after issuing a notice afresh to the petitioner company. Assistant Collector, Sales Tax Department and counsel for Sales Tax, advocate Mohsin Imam also appeared before the bench.