| Case ID |
2ffa8327-4778-4c61-9ccc-4d577247a1ab |
| Body |
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| Case Number |
S.T.A. No.82/IB of 2010 |
| Decision Date |
Sep 26, 2011 |
| Hearing Date |
May 11, 2011 |
| Decision |
The appeal has been filed by the appellant against Sales Tax Order-in-Appeal No.113 of 2011, dated 22-2-2011 passed by the respondent No.1. The case revolves around the imposition of special excise duty on goods and services in the hotel industry. The tribunal found that the special excise duty levied in respect of 'goods' did not extend to 'services' as defined under the Federal Excise Act. The court upheld the decision of the First Appellate Authority, emphasizing the legal lacuna in the S.R.O. No.655(I)/2007 which did not explicitly mention 'services'. Therefore, the appeal was dismissed, confirming that the special excise duty is applicable only to goods, not services provided by the hotel and restaurant sector. |
| Summary |
This case highlights the legal interpretation of the Federal Excise Act, particularly regarding the applicability of special excise duty on goods versus services in the hotel and restaurant industry. The Appellate Tribunal found that the law did not support the imposition of this duty on services, which are classified separately under the Customs Act. The tribunal's judgment reinforces the importance of precise language in legal documents, as the omission of the term 'services' in the relevant S.R.O. led to ambiguity in tax liability. This ruling is crucial for businesses in the hospitality sector, clarifying their tax obligations and protecting them from potential overreach by tax authorities. Keywords such as 'special excise duty', 'Federal Excise Act', and 'hotel services tax' are trending in discussions surrounding tax law and compliance, making this case particularly relevant for legal practitioners and business owners alike. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Federal Board of Revenue,
Messrs Hotel Margalla (Pvt.) Limited
|
| Judges |
MUNSIF KHAN MINHAS,
IKRAM ULLAH GHAURI
|
| Lawyers |
|
| Petitioners |
COMMISSIONER INLAND REVENUE, ISLAMABAD
|
| Respondents |
2 others,
COMMISSIONER INLAND REVENUE, (APPEALS-I), ISLAMABAD
|
| Citations |
2012 SLD 1135,
2012 PTD 459
|
| Other Citations |
|
| Laws Involved |
Federal Excise Act, 2005
|
| Sections |
4A,
3A
|