| Case ID |
2e477ea4-4cec-472e-8b7f-f61e67f76b03 |
| Body |
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| Case Number |
MA (AG) FEA No. 20/PB/2021, FEA No. 01/PB/2021 |
| Decision Date |
Oct 06, 2021 |
| Hearing Date |
Oct 06, 2021 |
| Decision |
The Appellate Tribunal Inland Revenue decided to vacate the orders of the lower authorities and annul the assessment order due to the lack of evidence that the petitioner had collected Federal Excise Duty (FED) in sales tax mode on the supplies made. The tribunal found that the assessing officer's reliance on personal estimates for tax liability was illegal and not supported by law. The decision emphasized the principle that sales tax cannot be recovered if it was not charged or collected from customers, as established by precedent. The tribunal ruled in favor of the appellant, highlighting the discriminatory treatment faced by the steel industry in comparison to other industries operating in the same region, particularly following the 25th Constitutional Amendment. |
| Summary |
This case revolves around the appeal filed by M/S Dargai Steel Furnace against the Federal Excise Duty (FED) imposed by the CIR, RTO, Peshawar. The tribunal examined the legal grounds on which the appeal was based, focusing on the legality of the show cause notice and the assessment order. The appeal highlighted issues of discriminatory treatment under tax law, particularly following the 25th Constitutional Amendment which affected the fiscal regime in the erstwhile FATA and PATA regions. The tribunal's decision underscores the importance of accurate data in tax assessments and the legal principle that taxes cannot be imposed based on estimates without solid evidence. The case is significant for its implications on the treatment of industries in transitional legal frameworks, particularly in relation to federal tax laws and constitutional protections. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/S DARGAI STEEL FURNANCE,
CIR, RTO, PESHAWAR
|
| Judges |
SHAHID MASOOD MANZAR,
MUHAMMAD IMTIAZ
|
| Lawyers |
Mr. Shaukat Ali Qureshi,
Mr. Ishfaq Ahmed
|
| Petitioners |
M/S DARGAI STEEL FURNANCE
|
| Respondents |
CIR, RTO, PESHAWAR
|
| Citations |
2021 SLD 1103
|
| Other Citations |
PTCL 1997 CL 260,
2004 PTD 868,
2017 SCMR 9,
1985 PTD 375,
2002 PTD 1195
|
| Laws Involved |
Federal Excise Act, 2005,
Sales Tax Act, 1990,
Constitution of Pakistan, 1973
|
| Sections |
12,
2(35),
2(46),
4,
7,
8,
13,
25
|