Sales tax: Official summoned for sealing beauty parlour

LAHORE:

Justice Shahid Jamil Khan of Lahore High Court (LHC) on Thursday summoned Sales Tax Department Deputy Commissioner (Enforcement) Zakaullah on a petition challenging sealing of a beauty parlour for non-payment of sales tax.

The court directed Zaka to appear with record on Friday (today). The judge observed that without assessing liability and making a tax demand, a business premises could not be sealed.

The judge said coercive measures could only be initiated after determination of tax liability.

Azhar Siddque, counsel for the petitioner, had challenged Rule 6 of the Enforcement Rules 2014 empowering the department to seal a business premises. He said the rule was ultra vires of Article 10-A of the Constitution and the Punjab Sales Act 2012. He said the department had no authority to seal a business premises saying that it amounted to closing the business.

He requested the court to declare the department’s move unconstitutional.

Published in The Express Tribune, May 8^th, 2015.