| Case ID |
22f9e154-d4cb-4786-9d89-583e8ee744ba |
| Body |
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| Case Number |
STA No. 91/LB/2012 |
| Decision Date |
Apr 25, 2016 |
| Hearing Date |
Apr 25, 2016 |
| Decision |
The appeal filed by the Revenue has been rejected due to lack of merit. The appellant had initially claimed an input tax adjustment that was found inadmissible. The adjudicating authority had issued a demand for recovery, which the CIR(A) modified by reducing the penalty to 5% based on the circumstances of the case. The final amount to be recovered was determined to be Rs. 15,792/- after considering prior payments made by the registered person. The decision maintains the integrity of the initial assessment while allowing for some leniency in penalties due to prior compliance. |
| Summary |
This case revolves around the appeal against a sales tax assessment made by the Revenue department concerning M/s Zohaib Foods (Pvt.) Limited. The main issue was the claim for input tax adjustments on invoices from blacklisted suppliers, which was deemed inadmissible under the Sales Tax Act, 1990. The tribunal's ruling emphasized the importance of adhering to tax regulations and the consequences of non-compliance. Despite the rejection of the appeal, the tribunal acknowledged the appellant's proactive steps in making substantial payments prior to the show cause notice, leading to a reduction in penalties. This case highlights the ongoing challenges faced by businesses in navigating tax laws and the implications of supplier compliance on tax claims. It serves as a reminder of the critical nature of due diligence in tax matters and the potential for penalties when legal standards are not met. |
| Court |
Appellate Tribunal Inland Revenue, Lahore
|
| Entities Involved |
CIR, Zone-I, RTO, Lahore,
M/s Zohaib Foods (Pvt.) Limited, Lahore
|
| Judges |
CH. ANWAAR UL HAQ
|
| Lawyers |
Ms. Bushra Fatima, DR.
|
| Petitioners |
CIR, Zone-I, RTO, Lahore
|
| Respondents |
M/s Zohaib Foods (Pvt.) Limited, Lahore
|
| Citations |
2016 SLD 418
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
11(2),
34,
36(1)
|