KARACHI, June 29: The Sindh High Court disposed of as infructuous a petition moved by a television channel as the impugned order for freezing its bank accounts for non-payment of sales tax has been withdrawn.

Advocate Syed Mohsin Imam informed a bench comprising Justices Mohammad Athar Saeed and Mrs Qaiser Iqbal that the freeze order had since been withdrawn but the sales tax department reserved the right to proceed against M/s Independent Media Corporation Limited, owners of the Geo TV channel, to recover Rs237 million outstanding against them as sales tax till December 2006.

The court asked the department to raise any new demand in the light of the adjudication of the sales tax collector of appeals. A fresh notice should be issued only after hearing the company and a 30-day notice should be issued before taking any coercive measure.

The CBR letter allowing payment in installments should not be withdrawn so long as the petitioner company meets the stipulations made in the letter.

Contesting the sales tax claim, Advocate Dr Farogh Nasim earlier said the channel was not liable to pay the tax.