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LHC restrains FBR from blacklisting taxpayers without show cause

Lahore (May 10, 2017): Lahore High Court (LHC) on Wednesday restrained Federal Board of Revenue (FBR) from blacklisting taxpayers without serving show-cause notice.

A single member bench of Justice Shams Mehmood Mirza issued the restraining order on a petition of New Matrix Distribution Company.

The petitioner has taken the plea that the Board took action against the taxpayers without issuing show cause notice. He added that the FBR was carrying out proceeding of blacklisting the company by suspending its registration.

The petitioner counsel argued that under Sales Tax Act, action against taxpayers can not be taken without issuing show cause notice.

He pleaded the court to declare the suspension of the company’s registration without serving show cause notice as void.

The court while restraining the FBR from blacklisting the taxpayers without serving show cause notice sought reply from FBR within two weeks on the petition.

The court also issued directives to club all petitions of same nature and adjourned further hearing of the petition for two weeks.

 

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