| Case ID |
29e125fe-b736-4dfa-9419-06d94b2b4be4 |
| Body |
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| Case Number |
F.E.A. No. 04/LB of 2014 |
| Decision Date |
Jan 18, 2016 |
| Hearing Date |
Nov 17, 2015 |
| Decision |
The appeal was accepted, and the show-cause notice issued to the registered person was vacated. The tribunal found that the demand for Federal Excise Duty was barred by time limitation and that the department failed to establish that any services had been rendered in terms of land development during the questioned period. The tribunal emphasized that Federal Excise Duty cannot be levied without proving the provision and rendering of services related to the development of residential or commercial entities. The orders passed by the authorities below were set aside, affirming the appellant's position. |
| Summary |
In the case of F.E.A. No. 04/LB of 2014, the Appellate Tribunal Inland Revenue evaluated the appeal concerning Federal Excise Duty liability under the Federal Excise Act, 2005, and the Sales Tax Act, 1990. The tribunal held that the registered person, engaged in property development, was under a legal obligation to file monthly returns but failed to do so. The tribunal determined that the show-cause notice issued for the recovery of Federal Excise Duty was time-barred, as it was issued beyond the three-year limitation period prescribed by the law. Furthermore, the tribunal ruled that the Federal Excise Duty could not be levied without establishing that services related to land development had been rendered. The decision emphasized the importance of adhering to statutory limitations and the necessity for the department to provide evidence of service provision before levying duties. The appeal was accepted, and the previous orders were set aside, reinforcing the principles of taxation law and the rights of taxpayers. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
COMMISSIONER INLAND REVENUE, R.T.O., GUJRANWALA,
GARDEN TOWN, PHASE II, GUJRANWALA
|
| Judges |
NAZIR AHMAD, JUDICIAL MEMBER,
MASOOD AKHTER SHAHEEDI, ACCOUNTANT MEMBER
|
| Lawyers |
Abuzar Hussain,
Asghar Niazi, D.R.
|
| Petitioners |
Messrs GARDEN TOWN, PHASE II, GUJRANWALA
|
| Respondents |
COMMISSIONER INLAND REVENUE, R.T.O., GUJRANWALA
|
| Citations |
2016 SLD 1206,
2016 PTD 2362
|
| Other Citations |
2006 PTD 537,
1992 SCMR 1898
|
| Laws Involved |
Federal Excise Act, 2005,
Sales Tax Act, 1990
|
| Sections |
4,
8,
14,
19(1),
2(22),
2(23),
2(91),
2(30),
3
|