| Case ID |
16907e69-5b45-4184-946e-242baff17c6f |
| Body |
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| Case Number |
WP No. 3479/2013 |
| Decision Date |
Mar 10, 2016 |
| Hearing Date |
|
| Decision |
The Lahore High Court dismissed the petitions challenging the vires of Section 8B of the Sales Tax Act, 1990. The Court found that the retention of 10% of the adjustable input tax was a legislative policy decision aimed at ensuring proper documentation and reducing misdeclarations. The Court ruled that the Petitioners failed to demonstrate that their fundamental rights were infringed, and the restriction was deemed reasonable to uphold the collection of taxes. No evidence was presented to substantiate claims of confiscation of property under Article 23 of the Constitution. |
| Summary |
In the case of Supreme Tube Industries Limited vs. Federation Of Pakistan Etc. (Pvt.), the Lahore High Court addressed the constitutional validity of Section 8B of the Sales Tax Act, 1990, which limits input tax adjustments to 90% of output tax. The Petitioners contended that this provision was unconstitutional and confiscatory, violating Article 23 of the Constitution. The Court, however, upheld the provision, stating it serves a public purpose by encouraging accurate tax declarations and preventing misdeclarations. The decision emphasized the importance of proper documentation in tax matters and underscored that the 10% retention is not an arbitrary deprivation of property but a necessary measure to ensure tax compliance. The judgment highlights the balance between taxpayer rights and the State's interest in tax collection, reaffirming the constitutionality of legislative measures aimed at improving financial integrity within the tax system. Keywords: Sales Tax Act, constitutional petition, input tax adjustment, public purpose, tax compliance, Lahore High Court, Article 23. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
AYESHA A. MALIK, J
|
| Lawyers |
Not available
|
| Petitioners |
Supreme Tube Industries Limited
|
| Respondents |
Federation Of Pakistan Etc. (Pvt.)
|
| Citations |
2016 SLD 1750 = 2016 LHC 1045
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Islamic Republic of Pakistan, 1973
|
| Sections |
8B
|