| Case ID |
0596cf9a-cedb-4dfe-9bf0-6ad377197b9b |
| Body |
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| Case Number |
Sales Tax References Nos. 6 to 11 of 2012 |
| Decision Date |
Mar 07, 2019 |
| Hearing Date |
|
| Decision |
The Islamabad High Court ruled that any procedural amendment affecting vested rights must operate prospectively. The court dismissed the tax references, confirming that amendments made in the Sales Tax Rules and the Federal Excise Act could not be applied retrospectively, particularly concerning refunds already claimed by the taxpayers. The court emphasized that the concept of apportionment under the Sales Tax Rules did not apply to the Excise Duty on services, thereby upholding the tribunal's earlier decisions in favor of the respondents. Consequently, the questions posed by the Commissioner in relation to the procedural amendments were answered in the negative, and the case references were disposed of accordingly. |
| Summary |
In this landmark case, the Islamabad High Court addressed critical issues surrounding the application of the Sales Tax Act, Federal Excise Act, and related rules concerning the apportionment of services and the refund of input tax. The court examined the principles of retrospective application of law, particularly focusing on procedural amendments that affect vested rights. The ruling clarified that amendments to the Sales Tax Rules and the Federal Excise Act, while procedural, could not adversely affect taxpayers' rights regarding refunds claimed prior to the amendments. The case involved significant legal discussions about the interpretation of statutes and the nature of procedural versus substantive rights, emphasizing the importance of protecting taxpayers against retrospective legal changes. This case sets a precedent for future tax-related disputes and interpretations of procedural laws in Pakistan. |
| Court |
Islamabad High Court
|
| Entities Involved |
MESSRS WISE COMMUNICATION SYSTEM, ISLAMABAD,
COMMISSIONER INLAND REVENUE, ZONE-II, ISLAMABAD
|
| Judges |
AAMER FAROOQ,
MOHSIN AKHTAR KAYANI
|
| Lawyers |
Hafiz Munawar Iqbal,
Barrister Afzal Hussain,
ArsIan Binyamin Bhatti
|
| Petitioners |
COMMISSIONER INLAND REVENUE, ZONE-II, ISLAMABAD
|
| Respondents |
MESSRS WISE COMMUNICATION SYSTEM, ISLAMABAD
|
| Citations |
2019 SLD 2978,
2019 PTD 2313,
(2020) 121 TAX 190
|
| Other Citations |
Sardar Sher Bahadur Khan v. Election Commission of Pakistan PLD 2018 SC 97,
WAPDA v. Irtiqa Rasool Hashmi 1987 SCMR 359,
Fazal Din & Sons (Pvt.) Ltd. v. Federal Board of Revenue 2009 SCMR 978,
Super Asia v. Federation of Pakistan 2017 PTD 1756,
Aftabuddin Qureshi and another v. Mst. Rachel Joseph and another PLD 2001 SC 482,
Messrs Bestway Cement Limited v. Additional Commissioner Inland Revenue and others (Writ Petition No.67 of 2016)
|
| Laws Involved |
Sales Tax Act, 1990,
Federal Excise Act, 2005,
Income Tax Ordinance, 2001,
Sales Tax Rules, 2006
|
| Sections |
7,
8(2),
47,
3,
7,
122(5A),
R.24,
R.25
|