| Case ID |
2bbe69d7-9803-4d5f-a2af-2054304081e7 |
| Body |
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| Case Number |
STA No. 763/LB/2015 |
| Decision Date |
Feb 19, 2016 |
| Hearing Date |
Feb 18, 2016 |
| Decision |
The Appellate Tribunal has annulled the impugned orders and allowed the appeal. The tribunal observed that the sales tax liability was improperly assigned to the appellant as he had not been registered for sales tax at the time the tax was assessed. The tribunal emphasized that the provisions of sales tax apply only to registered persons and that without proper registration, the appellant was not liable for the sales tax charges imposed by the authorities. The tribunal's decision was based on a thorough review of the law and precedents that support the taxpayer's position in similar circumstances. |
| Summary |
This case revolves around the appeal filed by Muhammad Saleem, the owner of M/s. Saleem Plastics, against the order-in-appeal issued by the CIR (Appeals-II), Lahore regarding sales tax registration and liability. The Appellate Tribunal found that the appellant had made substantial sales from 2010 to 2013 but had not registered for sales tax, leading to a show cause notice and an order for recovery of sales tax amounting to Rs. 80,80,301. The appellant's lawyer argued that the proceedings were flawed as no proper notice was served for compulsory registration. The tribunal ruled in favor of the appellant, citing that sales tax provisions only apply to registered entities and that the adjudicating officer’s actions were not in accordance with the established legal procedures. The ruling reinforces the importance of proper registration and adherence to legal mandates in sales tax cases. This decision is significant for taxpayers and legal practitioners as it clarifies the requirements for sales tax liability and registration, potentially influencing future cases involving unregistered entities and sales tax disputes. |
| Court |
Appellate Tribunal Inland Revenue, Lahore
|
| Entities Involved |
Not available
|
| Judges |
CH. SHAHID IQBAL DHILLON, JUDICIAL MEMBER,
MUHAMMAD RAZA BAQIR, ACCOUNTANT MEMBER
|
| Lawyers |
Mr. Muhammad Akram Gondal, Advocate,
Mr. Shafiq-ur-Rehman, D.R.
|
| Petitioners |
Muhammad Saleem, Owner M/s. Saleem Plastics, Lahore
|
| Respondents |
The CIR ZonEV, RTO, Lahore
|
| Citations |
2016 SLD 224
|
| Other Citations |
STA NO.1417/LB/2014 dated 04.05.2015,
ITA NO.745/LB/2015 dated 05.01.2015,
ITA No.783/LB/2015 dated 16.11.2015,
ITA No.753/LB/2015 dated 01.10.2015,
STA No.92/PB/2013 dated 01.10.2014,
STA NO.755/LB/2015 dated 25.11.2015,
STA No.542/LB/2015 dated 13.10.2015,
MA No. 647/LB/2015 dated 28.01.2016,
2006 PTD (Trib) 2673,
2008 PTD (Trib) 541,
PTCL 2014 C.L. 262
|
| Laws Involved |
Sales Tax Rules, 2006
|
| Sections |
4,
6
|