| Case ID |
252b1c2f-9e93-4908-860b-1660f3b4a09b |
| Body |
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| Case Number |
Ex. No. 32/LB of 2009 |
| Decision Date |
Sep 06, 2012 |
| Hearing Date |
|
| Decision |
The appeal was allowed, and the orders of the authorities were annulled. The court held that the payment made through direct debit was within the time frame required by the law. It clarified that any delay in the deposit of funds by the National Bank in the FBR's account was a matter between the bank and the FBR, and the registered person could not be penalized for such delays. The court emphasized that the direct debit method effectively met the intent of the law, despite not being expressly covered in the relevant sub-rule, and therefore the actions taken against the appellant were against the spirit of the law. |
| Summary |
In the case Ex. No. 32/LB of 2009, the Appellate Tribunal Inland Revenue addressed a dispute regarding the delayed payment of excise duty by a registered taxpayer. The taxpayer, who had opted to pay electronically via direct debit, faced penalties due to the National Bank's delay in transferring the payment to the Federal Board of Revenue (FBR). The court examined the provisions of Rule 45(5) of the Federal Excise Rules, 2005, which stipulate the conditions under which payments are considered timely. The tribunal ruled that the responsibility for the delay lay with the bank, acting as FBR's agent, and not with the taxpayer. The decision reinforced the importance of electronic payment methods and their alignment with the regulatory framework. The final judgment annulled the penalties imposed, highlighting the principle that registered persons should not be penalized for actions beyond their control. This case underscores the evolving landscape of tax compliance and the critical role of electronic transactions. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
SHAHID, JAMIL KHAN, JUDICIAL MEMBER,
MUHAMMAD ZAHIR-UD-DIN, ACCOUNTANT MEMBER
|
| Lawyers |
Waseem Ahmed Malik, Advocate,
Karamatullah Ch, DR
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2013 SLD 300 = (2013) 107 TAX 223
|
| Other Citations |
Not available
|
| Laws Involved |
Federal Excise Rules, 2005
|
| Sections |
45(5)
|