| Case ID |
268450b3-3347-41e7-a6f8-4b77ed6ab987 |
| Body |
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| Case Number |
S.T.A. No. 814/LB of 2006 |
| Decision Date |
Jan 31, 2007 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal accepted the appeal and set aside the previous orders regarding the adjustment of sales tax. The Tribunal found that the adjustment of sales tax amounting to Rs.7,27,720 (including additional tax) was rightly allowed by the Sales Tax Collectorate against the verified carry-forward input tax credit. The decision emphasized that no loss of revenue was involved and that the Central Board of Revenue's directives should not supersede the substantive provisions of law. The adjustment was deemed valid despite the procedural lapse referenced in the C.B.R. letter dated 3-10-2002. |
| Summary |
This case revolves around the interpretation of the Sales Tax Act, 1990, specifically addressing the adjustment of sales tax liabilities by the appellant. The core issue was whether the adjustment against carry-forward input tax credit was valid, given the directives from the Central Board of Revenue. The Appellate Tribunal ruled that the adjustment was permissible and highlighted that the previous ruling, which sought to disallow such adjustments, was based on procedural directives rather than substantive law. The decision underscores the importance of adhering to the law while considering administrative instructions. The ruling also clarifies the rights of registered persons under the Sales Tax Act, particularly concerning input tax adjustments and the implications of procedural irregularities. This case is significant for taxpayers and legal practitioners in understanding the boundaries of tax regulations and the interpretations by appellate authorities. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
ZAFAR-UL-MAJEED
|
| Lawyers |
Not available
|
| Petitioners |
Ch. Abdul Razaq
|
| Respondents |
Ashiq Hussain Duggal
|
| Citations |
2007 SLD 301,
2007 PTD 2286,
(2007) 95 TAX 377
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
7,
10,
33(2)(cc)
|