LAHORE - The Lahore High Court yesterday disposed of a petition filed by Ittefaq Sugar Mills and Kashmir Sugar Mills challenging condition of 70 percent payment to the Federal Board of Revenue with directions to the tribunal concerned to decide the matter within two weeks.

The mills filed the petition through their counsel Advocate Salman Akram Raja against dismissal of their petition before the Inland Revenue Tribunal of FBR. The petitioners’ counsel argued that the tribunal had put condition on their application seeking stay against the impugned recovery of the sales tax by FBR.

They requested the court to set aside the condition of the tribunal. However, the board’s counsel told the court that the notices were issued after appropriate assessment.

Justice Shahid Karim observed that condition at this stage was not sustainable and ordered the tribunal to decide the matter within two weeks. The judge disposed of the petition and also directed the FBR not to take any coercive measures against the petitioner till the final decision of the tribunal.

The Federal Board of Revenue had issued notices to both sugar mills for the recovery of Rs407 million as sales tax. Both the mills had challenged the notices of the FBR for the recovery of the sales tax.