| Case ID |
0bf94c6d-a027-42d3-8552-79de8148f402 |
| Body |
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| Case Number |
STA No. 54/KB/2018 |
| Decision Date |
Aug 08, 2018 |
| Hearing Date |
May 15, 2018 |
| Decision |
The Appellate Tribunal Inland Revenue, Karachi set aside the impugned order of blacklisting dated 07.02.2017 passed by the CIR, Zone-IV, RTO-II, Karachi. The Tribunal found the order to be illegal, arbitrary, and void ab initio, as the Department failed to provide adverse material or evidence establishing the issuance of fake invoices or committing tax fraud. Consequently, the Tribunal directed the immediate restoration of the Appellant's registration from the date of its initial registration on 06.06.2011, thereby allowing the Appellant to resume normal business operations without any coercive actions imposed by the Respondent. |
| Summary |
In the landmark case of M/S Cosmos International, Karachi versus The CIR, Zone-IV, RTO-II, Karachi, the Appellate Tribunal Inland Revenue, Karachi delivered a pivotal decision on August 8, 2018, addressing allegations of tax fraud and issuance of fake invoices under the Sales Tax Act, 1990. The case revolved around the suspension and subsequent blacklisting of Cosmos International's sales tax registration by the Respondent, citing discrepancies in tax filings and non-existence of the registered business premises. The Petitioner, represented by Advocate Aqeel Ahmed, challenged the validity of these actions, emphasizing the lack of concrete evidence and the failure of the Department to comply with judicial directions from the Sindh High Court. Key laws scrutinized included sections from the Sales Tax Act, Constitution of Pakistan, Qanun-e-Shahadat, and Sales Tax Rules. The Tribunal, led by judges Muhammad Jewad Zakaria and Syed Ayaz Mahmood, meticulously reviewed the procedural lapses and the absence of substantial proof required to justify blacklisting under Section 21(2). Citing multiple precedents and reinforcing the principle that allegations must be substantiated with material evidence, the Tribunal invalidated the Respondent's actions. The decision underscored the necessity for due process, adherence to legal standards, and the protection of taxpayers' rights against arbitrary administrative actions. This ruling not only reinstated Cosmos International's registration but also set a significant precedent for future tax-related disputes, ensuring that regulatory bodies uphold the principles of justice and evidence-based adjudication in the realm of tax law. |
| Court |
Appellate Tribunal Inland Revenue, Karachi
|
| Entities Involved |
M/S COSMOS INTERNATIONAL, KARACHI,
THE CIR, ZONE-IV, RTO-II, KARACHI
|
| Judges |
MUHAMMAD, JEWAD ZAKARIA,
SYED AYAZ MAHMOOD
|
| Lawyers |
Aqeel Ahmed,
Latif Mian
|
| Petitioners |
M/S COSMOS INTERNATIONAL, KARACHI
|
| Respondents |
THE CIR, ZONE-IV, RTO-II, KARACHI
|
| Citations |
2019 SLD 680,
(2019) 119 TAX 38
|
| Other Citations |
M/s Al-Hilal Motors vs. The Collector (PTCL 2004 CL. 1),
Adamjee Jute Mills Ltd. vs The Province of East Pakistan (PLD 1959 SC 272),
Gouranga Mohan Sikdar vs The Controller Import and Export and 2 others (PLD 1970 SC 158),
Muhammad Ibrahim Khan vs Secretary, Minister of Labour and Others (1984 SCMR 1014),
2008 SCMR 240,
2006 SCMR 1713,
2016 PTD 485,
2012 PTD 337,
2014 PTD (Trib) 558,
Aftab Shahban Mirani v. President of Pakistan and Others (1998 SCMR 1863)
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Pakistan, 1973,
Qanun-e-Shahadat (10 of 1984),
Sales Tax Rules, 2006
|
| Sections |
2(37),
3,
11,
12,
14,
21,
21(2),
23,
25,
38,
46,
73,
9,
10A,
18,
117,
118,
5(7),
12
|