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The government submitted responses to the High Court concerning the legality of its demand for unpaid VAT and fines exceeding Tk 7,000 crore from two oil companies. The Deputy Attorney General presented the replies to the court, which retained them in the case records. The contents of the replies were not disclosed. The High Court had previously issued rules questioning the legality of the VAT and fine demands following writ petitions by the two companies. On June 9, the Customs, VAT & Excise Commissionerate in Chattogram ordered the companies to pay Tk 3,538 crore in evaded VAT and Tk 3,531 crore in fines, along with interest, for the fiscal years 2019-20 and 2021-22. The High Court’s rules asked why the VAT orders, issued without hearings, should not be declared illegal and demanded explanations from relevant customs officials within 10 days. The court also sought reasons why the commissioner should not resolve the matter per sections 73 and 85 of the VAT and Supplementary Duty Act, 2012. A hearing on the rules is expected next month.
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