| Case ID |
0a3bfb06-83bd-46b4-9e7e-f4e7655d6b93 |
| Body |
View case body. Login to View |
| Case Number |
Civil Petitions Nos. 682-L to 684-L and 768-L of 2 |
| Decision Date |
Feb 18, 2022 |
| Hearing Date |
Feb 18, 2022 |
| Decision |
The Supreme Court of Pakistan dismissed the petitions for leave to appeal filed by the tax department, affirming the Lahore High Court's decision to defer action on show cause notices until the Valuation Committee determined the value of the concentrate used by the taxpayer. The Court emphasized that the High Court acted within its constitutional jurisdiction to ensure compliance with the law, which mandates the establishment of a Valuation Committee in cases where value cannot be easily ascertained. The Court reiterated that the tax department's arbitrary determination of value without consulting the Valuation Committee was unlawful, thereby preserving the interests of both parties involved. |
| Summary |
In the case concerning the Sales Tax Act, 1990, the Supreme Court of Pakistan deliberated on the legality of show cause notices issued by the tax authorities against Messrs Pepsi Cola International. The notices were challenged on the grounds that they were based on conjectural valuations of the concentrate used by the taxpayer. The Lahore High Court had previously held these notices in abeyance until the valuation by a designated committee was conducted, ensuring adherence to legal stipulations under the Sales Tax Act. The Supreme Court upheld this decision, reinforcing the necessity of a Valuation Committee in determining tax liabilities where prices are not readily ascertainable. This decision underscores the importance of legal processes in tax assessments and the protection of taxpayer rights in Pakistan, especially in complex tax matters involving significant financial implications. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
THE COMMISSIONER INLAND REVENUE, LAHORE,
MESSRS PEPSI COLA INTERNATIONAL, LAHORE
|
| Judges |
Qazi Faez Isa, Justice,
Amin-ud-Din Khan, Justice
|
| Lawyers |
Sarfraz Ahmed Cheema, Advocate Supreme Court,
Syed Fayyaz Ahmed Sherazi, Advocate-on-Record,
Rashid Anwer, Advocate Supreme Court,
Syed Rifaqat Hussain Shah, Advocate-on-Record
|
| Petitioners |
THE COMMISSIONER INLAND REVENUE, LAHORE AND OTHERS
|
| Respondents |
MESSRS PEPSI COLA INTERNATIONAL, LAHORE AND OTHERS
|
| Citations |
2022 SLD 956,
2022 SCMR 1140
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990,
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973,
Federal Excise Act, 2005
|
| Sections |
2(46)(e),
11,
122,
199,
12(1)
|