| Case ID |
2e8be3c1-916a-47cd-9df2-75cf26058769 |
| Body |
View case body. Login to View |
| Case Number |
116/LB of 2000 |
| Decision Date |
Dec 05, 2000 |
| Hearing Date |
|
| Decision |
The Tribunal found that the appellants, Messrs Arzoo Industries (Pvt.) Ltd., were entitled to claim input tax adjustment under section 7 of the Sales Tax Act, 1990. The Board's Circular which restricted such claims for voluntarily registered persons was declared to have no legal effect as it conflicted with the provisions of the Act. The Tribunal set aside both the original and appellate orders against the appellants and accepted their appeal, stating that the appellants had the same rights and liabilities as any other registered taxpayer, regardless of their voluntary registration status. The Tribunal emphasized that there was no provision in the Act that barred input tax adjustment for those opting for voluntary registration. The appellants were advised to contact the Collector of Sales Tax, Peshawar, for the adjustment or refund of the amount recovered through coercive means. |
| Summary |
In the case of Messrs Arzoo Industries (Pvt.) Ltd. vs. Collector (Appeals) Rawalpindi, the Tribunal addressed the issue of input tax adjustment for entities that opted for voluntary registration under the Sales Tax Act, 1990. The appellants had established a manufacturing unit for paper bags and sought tax exemptions, later applying for voluntary registration. The Central Board of Revenue initially allowed their registration, but later issued a circular denying input tax claims for those who voluntarily registered. The Tribunal ruled that the circular had no legal standing as it conflicted with the Act, asserting that voluntarily registered persons possess the same rights as any other registered taxpayer. This case highlights the significant legal principle that voluntary registration does not negate the right to claim input tax adjustments, ensuring fairness in tax practices. The decision underscores the importance of adhering to statutory provisions over administrative circulars, which may not align with legal statutes. This ruling is crucial for businesses seeking clarity on their tax obligations and rights within the framework of the Sales Tax Act, 1990. |
| Court |
Tribunal
|
| Entities Involved |
Central Board of Revenue,
Arzoo Industries (Pvt.) Ltd.
|
| Judges |
ABDUL MAJEED TIWANA,
FALAK SHER
|
| Lawyers |
Dr. Muhammad Shafiq
|
| Petitioners |
Messrs Arzoo Industries (Pvt.) Ltd.
|
| Respondents |
Collector (Appeals) Rawalpindi
|
| Citations |
2001 SLD 1509,
2001 PTD 2600
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act (VII of 1990)
|
| Sections |
18,
7,
59
|