| Case ID |
1005b847-1d7f-42e9-9cb1-754d236d0e7e |
| Body |
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| Case Number |
Civil Petition No. 3068-L of 2001 |
| Decision Date |
Feb 07, 2006 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the petition for leave to appeal, affirming the Lahore High Court's decision which set aside the imposition of additional sales tax and penalty against the respondent company. The court ruled that the imposition of additional tax under section 34 of the Sales Tax Act was not automatic and required a determination of whether the default in payment was wilful or mala fide. As there was no evidence of mala fide or wilful omission by the respondent company, the High Court's judgment was justified, leading to the dismissal of the petition. |
| Summary |
This case revolves around the imposition of additional sales tax and penalties under the Sales Tax Act, 1990 against Messrs ICI, Pakistan Limited. The Supreme Court of Pakistan addressed the legality of additional sales tax and penalties imposed on the company for alleged short payment of sales tax. The key legal principles established in this case include the necessity for authorities to determine whether a failure to pay taxes was due to wilful negligence or not. The court emphasized that each case must be evaluated on its own merits, ensuring that any penalties imposed are justified based on the specific circumstances. The case references various important laws and precedents relevant to tax liabilities, making it significant for understanding tax compliance and penalties in Pakistan. The ruling reinforces the need for due process in tax assessments, protecting companies from unjust penalties in cases of genuine disputes over tax liabilities. Keywords: Sales Tax Act, Additional Tax, Tax Penalty, Supreme Court of Pakistan, Tax Compliance, Tax Assessment. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Deputy Collector, Central Excise and Sales Tax, Lahore,
Messrs ICI, Pakistan Limited, Lahore
|
| Judges |
FAQIR MUHAMMAD KHOKHAR,
RAJA FAYYAZ AHMED
|
| Lawyers |
Izharul Haque, Advocate Supreme Court,
Mian Atta-ur-Rehman, Advocate Supreme Court,
Shahid Hamid, Senior Advocate Supreme Court
|
| Petitioners |
DEPUTY COLLECTOR, CENTRAL EXCISE AND SALES TAX, LAHORE
|
| Respondents |
Messrs ICI, PAKISTAN LIMITED, LAHORE
|
| Citations |
2006 SLD 248,
2006 PTD 1132,
(2006) 93 TAX 415
|
| Other Citations |
D.G. Khan Cement Company Limited and others v. Federation of Pakistan and others 2004 SCMR 456,
Shamroz Khan and another v. Muhammad Amin and others PLD 1978 SC 89,
Haji Abdul Razzak v. Pakistan through Secretary, Ministry of Finance, Islamabad and another PLD 1974 SC 5,
Muhammad Musa v. Settlement and Rehabilitation Commissioner and 2 others 1974 SCMR 352
|
| Laws Involved |
Sales Tax Act, 1990,
Central Excise and Salt Act, (I of 1944)
|
| Sections |
33,
34,
4(2)
|