LAHORE: Shakarganj Mills Limited has approached the Lahore High Court (LHC) against issuance of an additional tax recovery notice during the pendency of petitioner’s matter before the respondent commissioner Inland Revenue.

The petitioner through its counsel Ijaz Ahmad Awan contended that it is the leading brand of refined sugars in the Pakistani retail market and produces pharmaceutical, beverage and commercial grades sugar.

The counsel argued that the petitioner company makes huge contribution to the national exchequer in the form of various taxes, duties, fees, etc. He said the matter relates to the filing of sales tax/ federal excise return for the tax periods March 2017 and January 2018. The Deputy Commissioner Inland Revenue had issued a show cause notice to the petitioner due to the late filing and deposit of tax returns.

During pendency of the matters, principal amount was duly deposited on April 17, 2017, February 15, 2018, and February 26, 2018, he added and said the matter is pending till date and not fixed for hearing.

The counsel said that the crushing season nears its end and the embargo clamped on the factory premises is bound to cause law and order situation besides causing irreparable loss to the poor cane growers and revenue because taxable supplies have been stopped by dint of placement of the said impugned embargo on the sugar manufacturing factory.

He said the respondent neither served any notice of embargo nor the embargo placement order on the petitioner in accordance with the provisions of Rule 77 (a) of the Sales Tax Rules, 2006.

He prayed the court to set aside the order in question till final decision of the petition and restraint respondent from taking coercive measures against the petitioner company.

Copyright Business Recorder, 2022