ISLAMABAD: The Supreme Court ruled on Thursday that the Customs authorities have the power to recover uncollected import sales tax and advance income tax resulting from an erroneously granted exemption, if a demand is made before the statute of limitations comes into play.

This power exists even if the error is discovered after the clearance of goods, observed Chief Justice of Pakistan (CJP) Yahya Afridi in a judgement.

The ruling reinstated show-cause notices earlier issued to the respondents with a directive to adjudicate the same on merit.

The CJP headed a three-judge Supreme Court bench which had taken up a set of appeals against several decisions delivered by the Sindh High Court in 2022. Justice Muhammad Shafi Siddiqui dissented and will issue his note later.

Supreme Court verdict reinstates notices served on respondents

The respondents included Nestle Pakistan, Pakistan State Oil Company, General Food Corporation, Prime Foods, Attock Petroleum, Hascol Petroleum, Gas and Oil Pakistan,........

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