| Case ID |
0389d70a-57c1-4182-a47b-f271ff94b5a7 |
| Body |
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| Case Number |
S.T.A. No.519/LB of 2012 |
| Decision Date |
Jun 18, 2012 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal ruled that the proceedings initiated by the Commissioner Inland Revenue were without lawful jurisdiction. The taxpayer's registration was suspended without providing a reasonable opportunity to be heard, which violated the principles of natural justice. The Tribunal found that the Commissioner did not properly appreciate the facts of the case and relied on an incorrect interpretation of the law. The Tribunal emphasized that jurisdiction lay with the Commissioner (IR), Zone-III, RTO Faisalabad, not Zone-II, and thus declared the impugned order as null and void. |
| Summary |
In the case of S.T.A. No.519/LB of 2012 decided by the Appellate Tribunal Inland Revenue, the taxpayer, engaged in manufacturing polypropylene bags, faced suspension of registration under the Sales Tax Act, 1990. The Commissioner Inland Revenue issued a suspension order alleging tax evasion without providing the taxpayer a fair chance to explain or defend against the allegations. The Tribunal found these actions to be unlawful, emphasizing the necessity of following due process and the correct jurisdiction for such cases. This decision highlights the importance of fair hearings and adherence to legal protocols in tax matters, ensuring that taxpayers are protected under the law. The ruling reinforces the principle that jurisdiction must align with the actual location of business operations, thus safeguarding the rights of taxpayers against arbitrary administrative actions. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Messrs Shehzadi Polypropylene Industry
|
| Judges |
MUHAMMAD NAWAZ BAJWAH, JUDICIAL MEMBER,
SOHAIL AFZAL, ACCOUNTANT MEMBER
|
| Lawyers |
M. Imran Rashid,
Farooq Ijaz, ITP for Appellants,
Mrs. Fouzia Fakhar, D.R.,
Ahmad Kamal, DCIT for Respondents
|
| Petitioners |
MUHAMMAD ASHRAF
|
| Respondents |
C.I.R., R.T.O. FAISALABAD
|
| Citations |
2013 SLD 330,
2013 PTD 807
|
| Other Citations |
M.A. (AG) No.60/LB of 2012,
S.T.A. No.669/LB of 2011,
Mahmood Barni v. I.A.C. of Income Tax Gujranwala and others 2005 PTD 165,
Pakistan through Secretary Finance, Islamabad and 5 others v. Aryan Petro Chemical Industries (Pvt.) Ltd. and others 2003 PTD 505
|
| Laws Involved |
Sales Tax Act, 1990,
Sales Tax Rules, 2006
|
| Sections |
21,
21(2),
25A,
38,
2(23),
2(5),
5(1)(c)
|