| Case ID |
2e35f94f-9166-4a57-9e5c-59f52e649daa |
| Body |
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| Case Number |
S.T.As. Nos.116 to 120 of 2011 |
| Decision Date |
Oct 10, 2012 |
| Hearing Date |
Sep 27, 2012 |
| Decision |
The case revolves around the taxability of stevedoring services provided by the petitioner, FAUJI OIL TERMINAL and DISTRIBUTION COMPANY LTD., Karachi. The tribunal upheld the revenue authorities' view that the services rendered by the petitioner fell under the definition of stevedoring as per the applicable laws. The appellant's arguments, asserting that they were merely terminal operators and not stevedores, were dismissed as they failed to demonstrate a distinct separation from the defined services. The tribunal clarified that regardless of the nature of the payment (fixed throughput charges vs. value of supply), the chargeability of sales tax was based on the nature of services provided. The tribunal emphasized that the obligation to charge and pay sales tax lies with the service provider, in this case, the petitioner, and not with the Port Authority. The decision also addressed the validity of the Special Procedure Rules and confirmed that they were intra vires. Overall, the appeals were dismissed, affirming the tax liabilities imposed on the petitioner. |
| Summary |
In the case of FAUJI OIL TERMINAL and DISTRIBUTION COMPANY LTD. vs. COMMISSIONER INLAND REVENUE, the Appellate Tribunal Inland Revenue addressed the issue of sales tax applicability on stevedoring services. The tribunal analyzed the arguments presented by both parties, particularly focusing on the nature of services rendered by the petitioner. The tribunal determined that the services provided by the petitioner constituted stevedoring services, which are subject to sales tax under the Sales Tax Act, 1990 and the Sindh Sales Tax Ordinance, 2000. The petitioner's claim of being a terminal operator was insufficient to exclude them from tax liability. The tribunal upheld the revenue authorities' decisions, reinforcing the principle that the service provider is responsible for tax obligations regardless of the payment structure. The tribunal also validated the Special Procedure Rules governing the taxation of stevedoring services. This case highlights the importance of accurately categorizing services within the scope of tax law and the implications of service definitions for tax liability. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
FAUJI OIL TERMINAL and DISTRIBUTION COMPANY LTD.,
COMMISSIONER INLAND REVENUE (APPEALS)
|
| Judges |
SYED MUHAMMAD,
JAMIL RAZA ZAIDI,
ZARINA N. ZAIDI
|
| Lawyers |
Not available
|
| Petitioners |
FAUJI OIL TERMINAL and DISTRIBUTION COMPANY LTD., KARACHI
|
| Respondents |
COMMISSIONER INLAND REVENUE (APPEALS), LARGE TAXPAYERS UNIT, KARACHI
|
| Citations |
2013 SLD 2041 = 2013 PTD 214
|
| Other Citations |
Collector of Customs v. Dhan Fibre Ltd. 2010 PTD 515
|
| Laws Involved |
Sales Tax Act, 1990,
Sindh Sales Tax Ordinance (VIII of 2000),
Federal Excise Duty Rules, 2005
|
| Sections |
3,
71,
34,
3,
3(3),
R.43B
|