| Case ID |
01ed7519-fbdb-49b0-9015-63164da71345 |
| Body |
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| Case Number |
STA No.67/IB/2012 |
| Decision Date |
|
| Hearing Date |
Nov 07, 2012 |
| Decision |
The appeal has been partially accepted. The Appellant, OGDCL, was engaged in supplying gas and had laid down a gas pipeline. The Tribunal determined that the default surcharge demanded by the respondent was chargeable from the date of service of the Tribunal's previous order. The decision upheld earlier judgments affirming that the principal amount of sales tax had already been paid. The Tribunal found that the chargeability of default surcharge shall reckon after the Tribunal rendered its judgment, culminating in the finalization of the Tribunal's order. |
| Summary |
In the case STA No.67/IB/2012 before the Appellate Tribunal Inland Revenue, the appellant, Oil and Gas Development Company Limited (OGDCL), challenged a demand for sales tax and default surcharge related to their gas supply operations. The case hinged on the interpretation of the Sales Tax Act, 1990, specifically Section 34 and its implications for the chargeability of sales tax on various charges. The Tribunal examined the payments made under four categories: Monthly Demand Charges, Monthly Commodity Charges, Monthly Transportation Demand Charges, and Monthly Transportation Commodity Charges. The Tribunal noted that the appellant had only paid sales tax on commodity charges and not on the other three. The respondent demanded payment for the period from 1999-2000 to 2007-08. The Tribunal's previous ruling in STA No.11/IB/2011, which was upheld by the Islamabad High Court and the Supreme Court of Pakistan, established that there was no willful default by the appellant. Therefore, the default surcharge was deemed liable to be remitted. The Tribunal ultimately decided that the default surcharge would be chargeable from the date the earlier Tribunal order was served, leading to the partial acceptance of the appeal. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Oil and Gas Development Company Limited,
Uch Power Limited
|
| Judges |
MR. MUNSIF KHAN MINHAS,
MR. IKRAM ULLAH GHAURI
|
| Lawyers |
AR,
DR
|
| Petitioners |
M/s. Oil and Gas Development Company Limited
|
| Respondents |
C.I.R.(Appeals-II), RTO, Islamabad,
C.I.R., Zone-I, Islamabad,
D.C.I.R., LTU, Islamabad
|
| Citations |
2013 SLD 363 = 2013 PDS 1658
|
| Other Citations |
STA No. 11/IB/2011,
STR No. 173/2011,
CPLA No. 993/2011
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
34,
34(1)
|