Legal Case Summary

Case Details
Case ID 22f9e154-d4cb-4786-9d89-583e8ee744ba
Body View case body.
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)