A division bench of the Peshawar High Court (PHC) issued notice to the Khyber Pakhtunkhwa (KP) government, KP finance minister and director general Khyber Pakhtunkhwa Revenue Authority (KPRA) stopping sales tax recovery from an Islamabad-based taxpayer.
It is reliably learnt that a two-member bench headed by PHC Chief Justice has issued notice in a writ petition filed by an Islamabad-based service provider company through tax lawyer Waheed Shahzad Butt, challenging the illegal acts of KPRA officials under constitutional jurisdiction of PHC.
The petitioner stated that people of Pakistan must be provided justice by all organs of State and everybody has to work honestly, fairly and justly for purpose of building national character. Mere reading of contents of order passed by KPRA official reveals that Revenue Division functionaries working in KPRA have acted beyond their lawful jurisdiction just to harass the compliant taxpayer of the country. The state of affairs sufficiently unmasks the story between the lines, the training and mindset of the public office-holders representing KPRA.
The petition further stated, "It is the duty of tax authorities including KPRA and its field formations to dispense justice and functionaries representing KPRA are supposed to uphold the dignity of law. On the other hand due to some wrong practices under the powers available under KP Finance Act, 2013, process of law is being abused badly by some KPRA officials working in the field formations. The KPRA officials are the KP state functionaries appointed for lawfully administrating and carrying out the purposes of the sales tax on services laws in KP but prima facie in some cases process of law is being abused badly, solely to meet the budgetary targets.
By misusing the powers vested under KP Finance Act, some KPRA functionaries are playing havoc with the taxing statutes under the garb of unbridled powers, which is deprecated by higher judicial forums and accountability forums including office of Ombudsman.
The petitioner requested the court that till composition of Appellate Tribunal KPRA, any attempt by KPRA official is equivalent to severe mal-administration of justice and denial of rights provided under the Constitution of Islamic Republic of Pakistan.
The petitioner further prayed before the PHC to direct KP finance minister and KPRA DG to ensure that officials, especially public office-holders responsible to recover the taxes for the province of KP, attend and successfully complete a course of compulsory training in Sales Tax on Services laws under provinces and learn about taxpayer's rights and issue instructions to the KPRA officials that senior officers in field formations must exercise regular supervisory oversight of work done by the subordinate assessing / judicial / recovery officers and take prompt cognisance of all whimsical and arbitrary actions.
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