| Case ID |
2120fb1f-cf6d-4995-a8d8-c46952978d65 |
| Body |
View case body. Login to View |
| Case Number |
F.E. No.5/K of 2010 |
| Decision Date |
Mar 31, 2011 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal vacated the order of the First Appellate Authority and cancelled the order-in-original, thereby accepting the appeal of the taxpayer. The Tribunal determined that there was no justification for the levy of Federal Excise Duty on the services rendered by the appellant during the specified period. The Tribunal concluded that the services in question were not rendered in Pakistan and therefore did not qualify for Federal Excise Duty under the relevant provisions of the law. The Tribunal emphasized that the retrospective application of the amended laws was not applicable to the case at hand, which related to a time before the amendments were enacted. |
| Summary |
In the case of Messrs Habib Qatar International Exchange Pak (Pvt.) Ltd. vs. Collector of Customs Sales Tax and Federal Excise, the Appellate Tribunal Inland Revenue ruled on the imposition of Federal Excise Duty on foreign commissions received by the appellant. The Tribunal found that the services were not rendered in Pakistan as the transactions were completed abroad, thus exempting the appellant from the Federal Excise Duty. The decision highlights the importance of jurisdiction and the applicability of tax laws based on the location of service provision. The ruling is significant for exchange companies and similar entities engaged in international transactions, emphasizing the legal framework governing such duties. This case is crucial for understanding Federal Excise regulations and their implications for businesses operating in the financial sector. The Tribunal's decision serves as a precedent for future cases involving foreign service transactions, offering guidance on the interpretation of relevant tax laws. Key terms include Federal Excise Duty, international exchange services, and jurisdictional tax applicability. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
HABIB QATAR INTERNATIONAL EXCHANGE PAK (PVT.) LTD.,
COLLECTOR OF CUSTOMS SALES TAX and FEDERAL EXCISE (APPEAL)
|
| Judges |
JAWAID MASOOD TAHIR BHATTI, JUDICIAL MEMBER,
ZARINA N. ZAIDI, ACCOUNTANT MEMBER
|
| Lawyers |
Muhammad Aleem
|
| Petitioners |
Messrs HABIB QATAR INTERNATIONAL EXCHANGE PAK (PVT.) LTD.
|
| Respondents |
COLLECTOR OF CUSTOMS SALES TAX and FEDERAL EXCISE (APPEAL)
|
| Citations |
2012 SLD 1338,
(2012) 105 TAX 517,
2012 PTD 144
|
| Other Citations |
Not available
|
| Laws Involved |
Federal Excise Act, 2005,
Sales Tax Act, 1990,
Federal Excise Rules, 2005
|
| Sections |
4,
14,
19,
3(1)(d),
3(5)(c),
2(23),
2(17),
16,
3(1)(d),
40B,
First Schedule, S.No.9
|