IHC summons FBR officials in ST suspension case

By ISLAMABAD: The Chief Justice of the Islamabad High Court (IHC) has summoned the Federal Board of Revenue (FBR) officials and Commissioner Inland Revenue (CIR) to appear in person and explain the continued inaction in cases involving the suspension of sales tax registrations. The order was passed in a constitutional petition filed by a commercial importer challenging the continued suspension of his sales tax registration despite subsequent compliance with the FBR's electronic invoicing system requirements under SRO 1852(I)/2025. The petitioner's sales tax registration was suspended on September 2, 2026 following non-integration with the FBR's electronic invoicing system. The petitioner subsequently completed the required integration and submitted documentary evidence. However, the suspension remained in force despite the subsequent compliance. READ ALSO: Integration failure: FBR starts suspending sales tax registrations Osama Shahid, Advocate, counsel for the taxpayer, argued that the tax authorities had failed to act within the statutory period of thirty days prescribed under Section 21(2A) of the Sales Tax Act, 1990, to revoke the suspension or proceed with blacklisting. The continued suspension, despite compliance, was alleged to be unlawful and to have adversely affected the petitioner's business, particularly the clearance of imported goods from the port. He further submitted that clearance of the petitioner's goods would generate customs duty, advance income tax and sales tax revenue for the State, but the suspension of the petitioner's sales tax registration had prevented the clearance of the imported goods and, consequently, the collection of these taxes by the state. The petition also highlighted that repeated representations to the tax authorities had gone unanswered, leaving the petitioner unable to resume normal business operations. Taking note of the submissions, the Court directed respondents to submit reports and parawise comments before the next hearing, fixed for October 22, 2026. The law officers present in court were directed to ensure strict compliance with the order. On the same day, another writ petition challenging the prolonged suspension of a taxpayer's tax registration was also heard before the Islamabad High Court. The increasing number of such petitions reflects a growing trend of taxpayers approaching the High Courts for relief against continued suspensions, particularly where registrations remain suspended despite compliance with the prescribed requirements. Copyright Business Recorder, 2026