| Case ID |
2ad79947-64cc-464c-8db7-196ff8c48ff6 |
| Body |
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| Case Number |
Appeal No.7(153)ST/IB/2003 and Old No.7(88)ST/IB/2 |
| Decision Date |
May 31, 2006 |
| Hearing Date |
|
| Decision |
The appeal was accepted, and the show-cause notice as well as the Order-in-Original were held to be illegal and of no consequence. The tribunal emphasized that the valid and due refunds should not be withheld on mere technical grounds, and the Department failed to provide evidence that the principal amounts of sales tax were not due to the appellants. The tribunal also highlighted the importance of following statutory provisions and the consequences of not adhering to them. |
| Summary |
This case revolves around the appeal of Messrs Kohinoor Textile Mills against the Order-in-Original issued by the Additional Collector of Customs concerning additional tax and penalties due to alleged incorrect reporting of input tax. The tribunal found that the Department had failed to provide valid legal grounds for their actions and emphasized the substantive rights of taxpayers to claim valid refunds. The Sales Tax Act, 1990, provides specific provisions regarding the refund process and the Department's obligations, which were not followed in this instance. The tribunal ruled that the show-cause notice was vague and lacked legal effect, thus reinforcing taxpayer rights against arbitrary governmental actions. This case underscores the importance of legal compliance in tax matters and the protection of taxpayer rights under the law. |
| Court |
Appellate Tribunal
|
| Entities Involved |
Central Board of Revenue,
Messrs Kohinoor Textile Mills,
DGRRA Lahore
|
| Judges |
MUHAMMAD ANWAR ALI, MEMBER (TECHNICAL)/CHAIRMAN,
SYED SULTAN AHMAD, MEMBER (JUDICIAL)
|
| Lawyers |
Mr. Farhat Nawaz Lodhi
|
| Petitioners |
Messrs Kohinoor Textile Mills
|
| Respondents |
Additional Collector of Customs, Central Excise and Sales Tax (Adjudication), Rawalpindi
|
| Citations |
2007 SLD 1674 = 2007 PTD 728
|
| Other Citations |
Messrs Pfizer Ind. v. Federation of Pakistan PLD 1998 SC 64,
Messrs Trade Link v. Collectorate of Sales Tax, Lahore 2003 PTD (Trib.) 928,
The Coca Cola Export Corp. v. The Additional Collector (Appeal S.T.A. No.748/LB of 2001; 2002 PTD (Trib.) 1455,
Messrs Blue Horizon (Pvt.) Ltd. v. Collector (Appeals) PTCL 1999 CL. 162,
The Collector v. Messrs Novartis 2002 PTD 976,
1992 SCMR 1898,
PTCL 1993 CLC 532,
1992 CLC 841,
NLR 1991 Tax 11,
1901 MLD 1459,
KLR 1991 Tax 65
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
34,
33,
36,
10(2),
72,
67,
11(2),
3(3)(a),
10(3),
10(4),
33(2)(cc),
10
|