Case ID |
1ff2959b-e5fe-46d0-b01f-ec9a1fb6dccf |
Body |
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Case Number |
S.T.As. Nos.92/IB and 93/IB of 2011 |
Decision Date |
Jun 30, 2013 |
Hearing Date |
Mar 12, 2013 |
Decision |
The Tribunal remanded the case back to the Adjudicating Authority for further examination of materials as the previous investigation was deemed insufficient. The taxpayer's claims regarding the nature of their activities, whether they constituted manufacturing or merely service provision, were not adequately scrutinized by the authorities. The Tribunal emphasized the need for corroborative evidence and directed that the Adjudicating Authority should personally visit the taxpayer's premises to ascertain the nature of the activities. The decision also highlighted the importance of thorough investigation and the burden of proof lying with the revenue authorities in taxability matters. |
Summary |
This case revolves around the tax implications of services provided by M/s Dazzle Glass (PVT.) Ltd., particularly concerning whether their activities constituted manufacturing under the Sales Tax Act, 1990, or merely provided services exempt from tax. The Appellate Tribunal Inland Revenue found that earlier investigations did not adequately address the claims made by the taxpayer. The Tribunal noted that the taxpayer supplied services like glass frosting and tempering, which the department contended should be taxed as manufacturing activities. However, the Tribunal recognized that the taxpayer asserted these services should be exempt, falling under the category of services rather than manufacturing. The case was remanded for a comprehensive review, requiring the taxpayer to present all relevant records and evidence. The Tribunal's decision underscores the critical nature of proper evidentiary support in tax cases and the revenue authority's obligation to substantiate claims of taxability. This case is crucial for businesses involved in similar activities, as it sets a precedent for the classification of services versus manufacturing in tax law, emphasizing the need for clarity in tax obligations and the definitions of manufacturing activities under relevant laws. |
Court |
Appellate Tribunal Inland Revenue
|
Entities Involved |
CIR, RTO, ISLAMABAD,
MESSRS DAZZLE GLASS (PVT.) LTD.
|
Judges |
JAWAID MASOOD TAHIR BHATTI,
FAHEEM-UL-HAQ KHAN
|
Lawyers |
Ch. Naeemul Haq
|
Petitioners |
CIR, RTO, ISLAMABAD
|
Respondents |
MESSRS DAZZLE GLASS (PVT.) LTD.
|
Citations |
2013 SLD 1218,
2013 PTD 1723,
2013 PDS 1682
|
Other Citations |
Not available
|
Laws Involved |
Sales Tax Act, 1990,
Federal Excise Act, 2005
|
Sections |
2(16),
3,
6,
22,
26,
33,
34,
36(1),
3A,
4,
8,
19
|