| Case ID |
03604448-d683-4112-b689-33b941798d9f |
| Body |
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| Case Number |
S.T.R. No. 19 of 2008 and C.M. No. 1054 of 2019 |
| Decision Date |
May 09, 2022 |
| Hearing Date |
May 09, 2022 |
| Decision |
The High Court dismissed the Sales Tax Reference filed by the department, concluding that the non-compliance with Section 73 of the Sales Tax Act, 1990, did not warrant the disallowance of input tax adjustment. The court highlighted that the respondent was not claiming input tax adjustments against fake invoices or evading tax payments. The Appellate Tribunal's decision to allow the appeal of the taxpayer was upheld, reinforcing that the penalty imposed for non-compliance did not justify disallowing the input adjustment. The court found no reason to interfere with the Appellate Tribunal's order, thus restoring the original case reference. |
| Summary |
In the case of S.T.R. No. 19 of 2008, the Islamabad High Court addressed issues surrounding the Sales Tax Act, 1990, specifically Section 73, which governs the adjustment of input tax. The case arose after the Assistant Collector disallowed an input tax adjustment claimed by the respondent, citing non-compliance with payment requirements for transactions exceeding Rs. 50,000. However, the court found that the amount involved was below this threshold and noted that the department did not assert that the respondent was involved in fraudulent activities or tax evasion. The Appellate Tribunal had already ruled in favor of the taxpayer, allowing their appeal against the department's decision. The High Court affirmed the Tribunal's ruling, emphasizing the lack of grounds for the department's challenge and the absence of a legal basis for imposing penalties in this context. The decision reinforces the importance of compliance with procedural requirements while acknowledging the taxpayer's rights. Keywords: Sales Tax Act, input tax adjustment, Islamabad High Court, compliance, legal decision. |
| Court |
Islamabad High Court
|
| Entities Involved |
Not available
|
| Judges |
MIANGUL HASSAN AURANGZEB,
ARBAB MUHAMMAD TAHIR
|
| Lawyers |
Riaz Hussain Azam Bopara,
Ibrar Hussain
|
| Petitioners |
COLLECTOR, SALES TAX AND FEDERAL EXCISE, REGIONAL TAX OFFICE, ISLAMABAD
|
| Respondents |
ANOTHER,
CUSTOMS, CENTRAL EXCISE AND SALES TAX, APPELLATE TRIBUNAL, ISLAMABAD
|
| Citations |
2024 SLD 228,
2024 PTD 275
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
73
|