| Case ID |
000b56ce-1fd4-4449-bcd1-cc7071689eac |
| Body |
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| Case Number |
Suit No. 298 of 2020 |
| Decision Date |
Apr 18, 2022 |
| Hearing Date |
Apr 18, 2022 |
| Decision |
The Sindh High Court ruled that the notice issued by the Commissioner Inland Revenue to M/S. Dald Foods Ltd. for audit selection was unlawful due to the lack of reasons provided. The court referenced previous case law, concluding that the Commissioner is obliged to provide reasons when selecting a taxpayer for audit. Consequently, the court declared the audit notice invalid and restrained the defendants from acting upon it. The decision emphasizes transparency and the necessity of justifying audit selections under the relevant laws, ensuring taxpayer rights are protected. |
| Summary |
In the landmark case of M/S. Dald Foods Ltd. vs. Federation of Pakistan, the Sindh High Court addressed critical issues surrounding the Federal Excise Act, 2005, and Sales Tax Act, 1990. The case focused on the validity of a notice issued by the Commissioner Inland Revenue, selecting the plaintiff for an audit without providing any reasons. The court determined that such actions contravene established legal principles requiring transparency and accountability in administrative decisions. Citing precedents, the court ruled the notice unlawful, reinforcing the necessity for authorities to provide justifications for their actions. This decision is pivotal in upholding taxpayer rights and ensuring compliance with legal standards in administrative audits. The implications of this ruling resonate with businesses, legal practitioners, and policymakers, emphasizing the importance of due process in tax administration. Keywords include audit selection, Federal Excise Act, Sales Tax Act, taxpayer rights, legal precedent, Sindh High Court, administrative justice, and compliance. |
| Court |
Sindh High Court
|
| Entities Involved |
FEDERATION OF PAKISTAN,
M/S. DALDA FOODS LTD
|
| Judges |
IJAZ UL AHSAN,
SAJJAD ALI SHAH
|
| Lawyers |
Mr. Hanif Faisal Alam,
Bilal Khilji,
Muhammad Aqeel Qureshi
|
| Petitioners |
M/S. DALDA FOODS LTD
|
| Respondents |
ANOTHER,
FEDERATION OF PAKISTAN
|
| Citations |
2022 SLD 1199,
(2022) 126 TAX 502
|
| Other Citations |
Indus Motors Co. Ltd. v. Federation of Pakistan (2020 PTD 297),
Dewan Sugar Mills Ltd. v. Federation of Pakistan (Suit No. 850/2020 and others),
Wazir Ali Industries Ltd. vs. Federation of Pakistan and others (C.P. No. D-4729/2021)
|
| Laws Involved |
Federal Excise Act, 2005,
Sales Tax Act, 1990
|
| Sections |
46,
46(1),
68(1),
25,
25(1)
|