PESHAWAR, May 29: A cosmetic manufacturing company based in Mingora (Swat) has challenged in the Peshawar High Court the refusal of its registration as importer by the sales tax authorities.

A writ petition is filed by the Export Trading Company through Advocate Abdul Rauf Rohaila, stating that they were verbally informed by the authorities that the federal government intended to extend provisions of the Sales Tax Act, 1990, to the Federally Administered Tribal Areas (Fata) and Provincially Administered Tribal Areas (Pata) due to which the company could not be registered as importer.

The petitioner claimed that they were told by the concerned officials that through the Federal Budget 2003-04 the Sales Tax Act would be extended to Fata and Pata.

According to facts of the case the petitioner had established a cosmetic processing unit in Mingora and had applied to the Sales Tax department for registration as importer. The petitioner contended that the district coordination officer (DCO) of Swat had confirmed that the unit had been established and the Swat Chamber and Trade Association had granted membership to the petitioner, therefore he was entitled for registration as an importer.

The petitioner has stated that it had to import raw material which had to be routed through Karachi and according to CBR instructions the consignment was not released to an importer unless he held registration from the sales tax department.

The petitioner claimed that he had been approaching the concerned assistant collector registration but the matter had been delayed on one pretext or the other. Finally, he claimed that they were informed that the company could not be registered due to the intended extension of Sales Tax Act to Pata and Fata.

It is added that the refusal was without lawful authority and of no legal effect as the President of Pakistan had not issued any notification under Article 247 of the Constitution for extension of the sales Tax Act to Pata. It is added that several other units as well as importers were allowed to import raw material and registration had been granted to them under the said Act.