Production monitoring mechanism: IHC reserves judgment on pleas of industrial units
ISLAMABAD: The Islamabad High Court (IHC) has reserved its judgment in a series of constitutional petitions challenging the Federal Board of Revenue’s (FBR) electronic production monitoring system at industrial premises. A Division Bench of the IHC, comprising Justice Khadim Hussain Soomro and Justice Umair Malik, heard petitions filed by more than 300 industrial units from across the country,…
The Islamabad High Court has postponed delivering a ruling on a series of legal challenges to the Federal Board of Revenue's electronic production monitoring system installed in industrial facilities. A Division Bench of the IHC, consisting of Justices Khadim Hussain Soomro and Umair Malik, heard arguments from over 300 industrial associations representing various sectors, including ghee and cooking oil, beverages, textiles, packaged milk, food processing, packaging and more.
The petitioners contend that the monitoring system, governed by Section 40C of the Sales Tax Act of 1990, infringes on their constitutional rights, is legally invalid, and imposes an undue financial burden. The FBR's counsel argued that Section 40C, introduced in 2013, serves to strengthen electronic monitoring, prevent tax evasion and promote transparency in industrial production and sales.
They cited relevant sections of the Sales Tax Act and Rules, which govern the installation of monitoring equipment, acquisition of tax stamps and the enforcement measures for non-compliance. The court has now reserved its judgment pending further deliberation.
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