| Case ID |
2e15929d-c2a5-4330-9faa-51770489e6d6 |
| Body |
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| Case Number |
STA No. 102/PB/2014 and STA No. 40/PB/2015 |
| Decision Date |
Oct 05, 2020 |
| Hearing Date |
Oct 05, 2020 |
| Decision |
The Appellate Tribunal found that the wood used by the appellant for manufacturing its goods was not exempt from sales tax under Entry No. 10 of Table-II of the 6th Schedule of the Sales Tax Act, 1990. The Tribunal ruled that the wood had already undergone a manufacturing process, thus disqualifying it from being considered agricultural produce exempt from sales tax. The orders of the lower authorities were deemed void ab initio due to lack of jurisdiction, leading to the acceptance of the appellant's appeal. |
| Summary |
This case revolves around the applicability of sales tax on timber purchased by M/S Frontier Green Wood Industries (PVT) LTD. The Appellate Tribunal Inland Revenue, Peshawar, ruled on the sales tax implications of raw wood, which the appellant claimed was agricultural produce exempt from sales tax. The Tribunal examined whether the wood had been subject to a manufacturing process, ultimately deciding that the cutting of trees into logs constituted manufacturing. Therefore, the Tribunal concluded that the wood did not qualify for tax exemption and confirmed the lower authorities' assessments. The decision underscores the interpretation of agricultural produce and the implications of tax liability on manufacturing processes, emphasizing the importance of compliance with the Sales Tax Act, 1990. |
| Court |
Appellate Tribunal Inland Revenue, Peshawar
|
| Entities Involved |
THE COMMISSIONER INLAND REVENUE,
M/S FRONTIER GREEN WOOD INDUSTRIES (PVT) LTD
|
| Judges |
M.M. AKRAM, JUDICIAL MEMBER,
MIR BADSHAH KHAN WAZIR, ACCOUNTANT MEMBER
|
| Lawyers |
Isaac Ali Qazi, Advocate,
Muhammad Younis Khan, DRs
|
| Petitioners |
M/S FRONTIER GREEN WOOD INDUSTRIES (PVT) LTD, PESHAWAR
|
| Respondents |
THE COMMISSIONER INLAND REVENUE, (WITHHOLDING ZONE), RTO, PESHAWAR
|
| Citations |
2021 SLD 825,
(2021) 123 TAX 125
|
| Other Citations |
2019 PTD 561,
Malik Shamas Din Brothers v. The Income Tax and Sales Tax Officer,
MZs Friends Sons and Partnership Concern v. The Deputy Collector Central Excise and Sales Tax, Lahore,
Muhammad Ishaq v. State,
Nagina Silk Mill, Lyallpur v. Income Tax Officer A-Ward, Lyallpur,
The State v. Muhammad Jamal,
Abdul Rehman v. Settlement Commissioner,
Adnan Afzal v. Capt. Sher Afzal,
Ch. Safdar Ali v. Malik Ikram Elahi and another,
Muhammad Abdullah v. Imdad Ali,
Bashir v Wazir Ali,
Mst. Nighat Yasmin v, National Bank of Pakistan,
Yusuf Ali Khan v. Hong, Kong and Shanghai Banking Corporation, Karachi,
Malik Gul Hasan Co, and 5 others v. Allied Bank of Pakistan,
Commissioner of Income Tax, Peshawar v. Islamic Investment Bank Ltd.,
Additional Commissioner Inland Revenue, Audit Range, Zone-I v. Eden Builders Limited,
Director General Intelligence and Investigation FBR v. Sher Andaz and 20 Others,
Director General Intelligence and IBR Vs Investigation and others v. M/s AL-Faiz Industries (Pvt.) Limited and others,
Collector, Salwar and 2 others v. Muhammad Akhtar
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
2(16),
3(3)(a),
11,
11(2),
11(4A)
|