VAT claims against S Alam firms: Govt submits replies to HC rules
The government today submitted before the High Court replies to the rules which questioned the legality of its demand for unpaid VAT and the consequent fines of over Tk 7,000 crore from S Alam Vegetable Oil Ltd and S Alam Super Edible Oil Ltd.
Deputy Attorney General Nawroz MR Chowdhury placed the written replies on behalf of the authorities concerned of the government before the HC bench of Justice Zafar Ahmed and Justice Sardar Md Rashed Jahangir in compliance with its previous directive.
For all latest news, follow The Daily Star's Google News channel. The court, however, did not disclose the contents of the reply but kept those with the record of the case, court sources said.
DAG Nawroz could not be reached for his comments despite repeated attempts over phone.
Meanwhile, writ petitioners' lawyer Ahsanul Karim told The Daily Star that the HC may hold hearing on the rule next month.
Senior Advocate Ahsanul Karim refused to disclose the contents of the replies, terming those a sub judice matter.
Following two separate writ petitions filed by S Alam Vegetable Oil Ltd and S Alam Super Edible Oil Ltd, the HC bench on July 1 issued the rules questioning the legality of government's demand for unpaid VAT and the consequent fines of over Tk 7,000 crore from the petitioners.
On June 9, the Customs, VAT & Excise Commissionerate, Chattogram in its adjudication orders asked the two companies to pay Tk 3,538 crore in "evaded VAT", Tk 3,531 crore in fines, and interest on the amounts, to the state coffers within 15 work days. Customs said the value added tax was evaded in fiscal years 2019-20 and 2021-22.
The HC in two rules asked the respondents as to why the VAT determination orders -- issued by the commissioner of The Customs, Excise & VAT Commissionerate, Chattogram, without hearing the two companies -- should not be declared illegal.
The respondents -- the commissioner and deputy commissioners of the Chattogram commissionerate; and revenue officer of Customs, Excise & VAT, Karnaphuli Circle, Taltola Chowki, Patia, Chattogram -- were asked to come up with an explanation within 10 days.
The court also asked them why the commissioner of the Chattogram commissionerate should not be asked to dispose of the matter by strictly following sections 73 and 85 of the Value Added Tax and Supplementary Duty Act, 2012.
The bench also fixed July 15 to hold a hearing on the rules.
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