| Case ID |
1f5ca64d-e3cb-447b-9439-f71d32815b80 |
| Body |
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| Case Number |
STA No. 756/LB/2013 |
| Decision Date |
Oct 26, 2016 |
| Hearing Date |
Sep 28, 2016 |
| Decision |
The Appellate Tribunal Inland Revenue annulled the decisions made by the lower authorities due to numerous factual and legal flaws. The Tribunal observed that the lower authorities failed to adhere to the statutory timelines prescribed under the Sales Tax Act, resulting in a procedural lapse that compromised the rights of the taxpayer. The Tribunal emphasized that the appeal was filed within the allowed period, and the dismissal of the appellant's case was deemed unjust and without adequate justification. Consequently, the appeal was accepted, and the orders passed by the authorities were set aside, allowing the taxpayer to benefit from the lawful input tax adjustments claimed. |
| Summary |
This case revolves around M/S Ali Packages appealing against the Order-in-Appeal No.426 issued by the Commissioner Inland Revenue (Appeals), which dismissed their claims regarding input tax adjustments on the grounds of alleged tax fraud. The appellant was accused of having claimed inadmissible input sales tax adjustments based on fake invoices issued by their suppliers. The Tribunal found that the lower authorities had not only exceeded the prescribed time limits for decision-making but also failed to provide a clear and reasoned order, which is a fundamental requirement in tax law. The Tribunal highlighted the importance of adhering to procedural norms and the necessity for decisions to be well-reasoned and timely. Ultimately, the Tribunal ruled in favor of the appellant, allowing the input tax adjustments and setting aside the previous orders that were not in line with legal standards. This case underscores the significance of due process in tax adjudication and the protection of taxpayer rights under the Sales Tax Act, 1990. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/s Red Pex Enterprises,
M/s Umer Paper Mart
|
| Judges |
Qamar-ul-Haq Bhatti
|
| Lawyers |
Mr. Muhammad Farooq Sheikh,
Ms. Shazia Gull
|
| Petitioners |
M/S Ali Packages
|
| Respondents |
The Commissioner Inland Revenue, RTO, Lahore
|
| Citations |
2017 SLD 165
|
| Other Citations |
2010 PTD (Trib) 81,
3ST 2004 CL 71,
GST 2003 CL 562,
GST 2004 CL 79
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
3,
11,
8,
2(37),
6,
7,
22,
23,
26,
33(13),
38,
73,
11(2),
36(1),
11(5),
25,
36(3),
14,
45B,
8(A),
11(c),
34(1),
42B(2)
|