| Case ID |
2cae10bd-f0d2-44bf-a154-ce0b541e4de3 |
| Body |
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| Case Number |
S.T. Appeal No. 318/PB/2003 |
| Decision Date |
May 19, 2004 |
| Hearing Date |
|
| Decision |
The appeal was accepted on the grounds that the late payment of sales tax was not willful and was a result of differing interpretations of the law regarding the time of supply of goods. The Tribunal ruled that sales tax is payable on advances received by considering the date of receipt as the date of sale, rather than the date of actual supply. The imposition of additional tax and penalties was deemed unjustified, leading to the annulment of the previous orders requiring additional tax and penalties. |
| Summary |
In the case of S.T. Appeal No. 318/PB/2003, the Appellate Tribunal Inland Revenue ruled on the application of the Sales Tax Act, 1990, particularly focusing on Section 2(44) regarding the time of supply of goods. The case involved M/s. Janana De Malucho Textile Mills, which faced additional tax imposition for late payment of sales tax on advances received for the supply of yarn. The Tribunal highlighted the conflicting interpretations of the law by different High Courts, which led to confusion among taxpayers. Ultimately, the Tribunal affirmed that the sales tax must be paid at the time of receiving the advance, dismissing the additional taxes and penalties imposed on the appellants as unjustified. This decision clarifies the obligations under the Sales Tax Act and emphasizes the importance of consistent legal interpretations. Keywords include Sales Tax, Advance Payments, Legal Interpretation, Tax Compliance, Tribunal Rulings, and Sales Tax Act. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/s. Janana De Malucho Textile Mills, Kohat,
Deputy Collector of Customs, Central, Excise and Sales Tax (Adjudication), Peshawar
|
| Judges |
MR. MUHAMMAD WALI KHAN
|
| Lawyers |
|
| Petitioners |
M/s. Janana De Malucho Textile Mills, Kohat
|
| Respondents |
Deputy Collector of Customs, Central, Excise and Sales Tax (Adjudication), Peshawar,
Mr. Qurban Ali Khan, D.R.,
Mr. Shoaib Sultan, Sr. Auditor,
Mr. Muhammad Younas, Sr. Auditor
|
| Citations |
2004 SLD 334,
2004 PTCL 450
|
| Other Citations |
PTCL 2004 CL. 224,
PT CL 2000 CL. 195,
2004 SCMR 456,
PT CL 1992 CL-23,
PT CL 2001 CL 627,
GST 2002 CL 183
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
2,
2(44),
33,
34
|