| Case ID |
19081aa9-773c-4bae-bb61-2a7f19ce0f97 |
| Body |
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| Case Number |
S.T.A. No. 54/KB of 2018 |
| Decision Date |
Aug 08, 2018 |
| Hearing Date |
May 15, 2018 |
| Decision |
The Appellate Tribunal Inland Revenue ruled in favor of the appellant, M/s Cosmos International, set aside the blacklisting order imposed by the Commissioner Inland Revenue. The Tribunal determined that the Commissioner failed to provide sufficient evidence to support the allegations of tax fraud and issuance of fake invoices. The Tribunal emphasized the necessity for a thorough investigation and evidence collection before such extreme actions are taken. The decision reinstated the appellant’s sales tax registration and underscored the importance of protecting the rights of taxpayers against arbitrary administrative actions. |
| Summary |
This case revolves around the blacklisting of M/s Cosmos International under the Sales Tax Act, 1990, due to allegations of tax fraud. The Appellate Tribunal found that the Commissioner Inland Revenue did not justify the drastic action of blacklisting without adequate evidence. The Tribunal highlighted that tax fraud accusations require substantial proof, and the absence of such evidence renders the administrative action illegal. The case reinforces the necessity for fair treatment of taxpayers and the requirement for regulatory bodies to adhere to due process. The decision to restore the appellant's registration emphasizes the protection of business rights and the importance of maintaining a transparent tax system. Key terms include tax fraud, sales tax registration, administrative justice, and taxpayer rights. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
THE COMMISSIONER INLAND REVENUE, ZONE-IV, RTO-II,
COSMOS INTERNATIONAL, KARACHI
|
| Judges |
MUHAMMAD JAWED ZAKARIA,
SYED AYAZ MEHMOOD
|
| Lawyers |
|
| Petitioners |
Aqeel Ahmed
|
| Respondents |
Latif Mian, D.R., R.T.O.
|
| Citations |
2019 SLD 2968,
2019 PTD 2233
|
| Other Citations |
2008 SCMR 240,
2006 SCMR 1713,
2016 PTD 485,
2004 PTD 868,
2014 PTD (Trib.) 558,
Aftab Shahban Mirani v. President of Pakistan and others 1998 SCMR 1863,
2012 PTD 337
|
| Laws Involved |
Sales Tax Act, 1990,
Qanun-e-Shahadat (10 of 1984),
General Clauses Act, 1897,
Sales Tax Rules, 2006
|
| Sections |
2(37),
11,
14,
21,
21(2),
25,
38,
46,
73,
117,
118,
24-A,
R.5,
5(7),
7,
12
|