| Case ID |
33394dc0-f121-4703-b39c-382d4b8c936c |
| Body |
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| Case Number |
STA No. 1693/LB/2015 |
| Decision Date |
Feb 22, 2016 |
| Hearing Date |
Feb 18, 2016 |
| Decision |
The Appellate Tribunal Inland Revenue, Lahore, ruled that the show cause notice issued to M/s. N.S. Plastic was time-barred as it was issued after the lapse of five years, contrary to the provisions of the Sales Tax Act, 1990. The Tribunal found that the appellant had acquired a vested right after the expiration of the time limitation specified under Section 11(5). The Tribunal emphasized that the initial burden of proof lies with the department in tax fraud allegations and that the orders from lower forums were unsustainable in law due to procedural errors. The appeal of M/s. N.S. Plastic was accepted, and the order of the Adjudicating Officer was vacated. |
| Summary |
This case revolves around a tax appeal by M/s. N.S. Plastic against an order-in-appeal regarding input tax adjustments claimed on invoices issued by blacklisted suppliers. The Appellate Tribunal ruled in favor of the appellant, citing a lack of jurisdiction in the issuance of the show cause notice due to the expiration of the five-year limitation period mandated by the Sales Tax Act, 1990. The Tribunal highlighted the importance of adhering to legal timelines to protect taxpayers' rights and emphasized that allegations of tax fraud must be substantiated with evidence. The decision underscores the necessity for tax authorities to follow statutory requirements and the legal protections afforded to taxpayers. This ruling is significant for businesses involved in tax compliance and highlights the critical nature of timely actions by tax authorities. It serves as a precedent for similar cases where procedural lapses may invalidate tax recovery efforts. |
| Court |
Appellate Tribunal Inland Revenue, Lahore
|
| Entities Involved |
Not available
|
| Judges |
CH. SHAHID IQBAL DHILLON, JUDICIAL MEMBER,
MUHAMMAD RAZA BAQIE, ACCOUNTANT MEMBER
|
| Lawyers |
Malik Muhammad Arshad, Advocate,
Mr. Shafiq-ur-Rehman Siddique, D.R.
|
| Petitioners |
M/s. N.S. Plastic, Lahore
|
| Respondents |
The CIR Zone VI, RTO-II, Lahore
|
| Citations |
2016 SLD 218
|
| Other Citations |
1992 SCMR 1898,
2010 PTD 251,
2012 PTD (Trib) 1040,
2011 PTD (Trib) 677
|
| Laws Involved |
Sales Tax Act, 1990,
Finance Act, 2011
|
| Sections |
2(37),
11(2),
11(5),
21(3)
|