| Case ID |
03574c83-b77b-4cb7-b0a9-22b5a1e9631b |
| Body |
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| Case Number |
STA No 262/IB/2022 |
| Decision Date |
Oct 03, 2023 |
| Hearing Date |
Oct 03, 2023 |
| Decision |
The appeal filed by M/S XPLOR ENTERPRISES (PVT) LTD against the order of the learned Commissioner Inland Revenue (Appeals), Islamabad, was allowed. The Appellate Tribunal found that the assessing officer's orders to charge default surcharge on receipt of advances and demanding 10% of the output tax were not sustainable and violated the provisions of the Sales Tax Act, 1990. The Tribunal emphasized that no default surcharge should be charged when no payment is due, and the non-payment of 10% output tax was deemed a procedural lapse that did not cause any revenue loss. Consequently, the Tribunal annulled both the original and appellate orders, allowing the appeal in favor of the appellant. |
| Summary |
In the case of M/S XPLOR ENTERPRISES (PVT) LTD against THE CIR, CTO, the Appellate Tribunal Inland Revenue addressed critical issues under the Sales Tax Act of 1990. The appellant faced penalties for failing to pay sales tax on advances. The Tribunal ruled that the assessing officer's imposition of default surcharge was inappropriate since no payment was due. Furthermore, the Tribunal clarified that the appellant, identified as a commercial importer, was not required to pay 10% of the output tax, as this was not applicable under the act. The decision is significant for taxpayers engaged in similar transactions, as it underscores the necessity for tax authorities to adhere strictly to the provisions of the law, ensuring that procedural lapses do not unjustly penalize compliant entities. This ruling not only benefits the appellant but also sets a precedent for future cases involving the application of sales tax regulations and the rights of taxpayers under the law. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/S XPLOR ENTERPRISES (PVT) LTD,
THE CIR, CTO
|
| Judges |
MIAN ABDUL BASTT, JUDICIAL MEMBER,
IMRAN LATIF MINHAS, ACCOUNTANT MEMBER
|
| Lawyers |
Mr. Abaid Ullah, Advocate for the Appellant,
Mr. Shehryar Akram, DR for the Respondent
|
| Petitioners |
M/S XPLOR ENTERPRISES (PVT) LTD, ISLAMABAD
|
| Respondents |
THE CIR, CTO, ISLAMABAD
|
| Citations |
2024 SLD 3476 = (2024) 130 TAX 43
|
| Other Citations |
2020 PTD 1559,
2019 SCMR 1643,
2001 PLD (SC) 340,
2008 PTD 1401,
2021 PTD 1270,
2020-PTD-2025,
2022 PTD 1781
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
3,
11,
6,
7,
22,
23,
26,
34,
8B(1),
25,
2(44),
33(1),
2(16),
88(1)
|