| Case ID |
048a129d-cf44-4545-8ea3-9c28717e43e8 |
| Body |
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| Case Number |
S.T.A. No. 968/LB of 2009 |
| Decision Date |
Sep 28, 2010 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal determined that the Adjudicating Officer and Appellate Authority failed to recognize the status of the appellant's supplier as a commission agent, registered under the Sales Tax Act and Income Tax Ordinance. The Tribunal noted that the supplier was not required to add any value but to supply goods at prices set by the principal. It was established that the sales tax on the goods had already been settled by the principal. The Tribunal remanded the case back to the Adjudicating Authority for a fresh order, emphasizing that the input tax refund claimed by the appellant could not be rejected without substantiated charges against either party. This decision aligns with previous rulings establishing input tax as a legitimate right of the taxpayer. |
| Summary |
This case revolves around the interpretation of the Sales Tax Act, 1990, particularly regarding the responsibilities of commission agents and the conditions under which input tax refunds can be claimed. The Appellate Tribunal focused on the legal definitions and statuses of the parties involved, particularly the appellant's supplier's role as a commission agent. The Tribunal's decision emphasizes the importance of adhering to established legal frameworks and the rights of taxpayers to claim refunds without unjustifiable objections. The case references significant precedents that reinforce taxpayer rights and clarify the interpretation of tax obligations, which is crucial for legal practitioners and taxpayers alike. This ruling serves as a reminder of the importance of clear legal definitions in tax law and the rights of registered persons under the Sales Tax Act. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Messrs COTTON ARTS (PVT.) LTD.,
Messrs Anwar Corporation
|
| Judges |
JAWAID MASOOD TAHIR BHATTI
|
| Lawyers |
Khubaib Ahmad,
Muhammad Jamil Bhatti
|
| Petitioners |
Messrs COTTON ARTS (PVT.) LTD.
|
| Respondents |
COLLECTOR SALES TAX, FAISALABAD
|
| Citations |
2011 SLD 226,
2011 PTD 1548
|
| Other Citations |
2004 PTD 868,
2000 PTD 3765,
1993 SCMR 274,
2002 PTD 2457
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
2,
2(47),
7A,
46
|