| Case ID |
2293d4ac-7fcf-40cc-a637-be373b5bc77f |
| Body |
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| Case Number |
S.T.A. No. 935/LB of 2009 |
| Decision Date |
Feb 18, 2011 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal ruled that the rejection of the appellant's refund claim was based on the non-submission of supporting evidence. It was determined that the agreement between the department and the Confectionery Association, which limited the refund to 20% of input tax on packing materials, was not legally binding. The Tribunal directed the department to reassess the refund claim based on actual evidence submitted by the registered person. Both lower orders were vacated, allowing the appeal to be reconsidered. |
| Summary |
This case revolves around the interpretation of the Sales Tax Act, 1990, specifically addressing the refund of input tax claims related to packing materials. The appellant, Messrs SUNRISE FOOD INDUSTRY, challenged the rejection of their refund claim based on an alleged agreement limiting refunds to 20%. The Appellate Tribunal found that such agreements lack legal enforceability unless supported by legislation. The ruling emphasizes the importance of documentary evidence in tax refund claims and clarifies that administrative agreements cannot override statutory provisions. The case highlights the ongoing complexities in tax law and the need for transparency and compliance with legal standards. The decision reaffirms the principles of accountability in tax administration, ensuring that taxpayers are treated fairly under the law. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
COLLECTOR OF SALES TAX,
SUNRISE FOOD INDUSTRY
|
| Judges |
SHAHID, JAMIL KHAN, JUDICIAL MEMBER
|
| Lawyers |
Khubaib Ahmad,
Azmat Elahi Ghumman
|
| Petitioners |
Messrs SUNRISE FOOD INDUSTRY, FAISALABAD
|
| Respondents |
COLLECTOR OF SALES TAX, FAISALABAD
|
| Citations |
2011 SLD 183 = 2011 PTD 1888
|
| Other Citations |
2011 PTD (Trib.) 22,
2007 PTD 47
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
10
|