| Case ID |
35f8977c-a357-4c70-920b-a05db7623762 |
| Body |
View case body. Login to View |
| Case Number |
M.A.(A.G.) No. 353/KB of 2020 & STA No.42/KB of 20 |
| Decision Date |
Nov 02, 2020 |
| Hearing Date |
Sep 30, 2020 |
| Decision |
The Appellate Tribunal allowed the appeal of the taxpayer on the grounds that the issuance of notice under section 11(2) of the Sales Tax Act without selection under section 25 for audit was unauthorized and illegal. The Tribunal emphasized that the self-assessed amount of tax due can only be altered through a fresh assessment of tax under section 11, subject to the audit process. The Tribunal found that the further tax charged under section 3(1A) was not applicable as the supplies did not meet the requirements stipulated in that section. Furthermore, the order in original was deemed time-barred as it was issued beyond the statutory period without justification. The Tribunal set aside the orders of the officers below, thereby allowing the appeal of the taxpayer. |
| Summary |
In the case of M.A.(A.G.) No. 353/KB of 2020 & STA No.42/KB of 2020, the Appellate Tribunal Inland Revenue addressed significant issues surrounding the Sales Tax Act, 1990. The case involved M/S. FINE & CO. WINE STORE challenging the Commissioner Inland Revenue's decision regarding further tax assessments. The Tribunal highlighted the necessity of following due process, particularly the requirement for an audit before tax assessments can be altered. This decision reinforces the importance of adhering to procedural laws to ensure fair treatment of taxpayers. The ruling also clarified the applicability of further tax under section 3(1A) of the Sales Tax Act, emphasizing that not all supplies to unregistered persons are subject to further tax. This case serves as a crucial reference point for future tax disputes, particularly concerning the procedural aspects of tax assessments. The Tribunal's decision is expected to influence similar cases and provides clarity on the interpretation of the Sales Tax Act, 1990. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD JAWED ZAKARIA, JUDICIAL MEMBER,
SAIFULLAH KHAN, ACCOUNTANT MEMBER
|
| Lawyers |
Iqbal Hussain Shaikh, Advocate for the Appellant,
Abid Aziz Memon, D.R., for the Respondent
|
| Petitioners |
M/S. FINE & CO. WINE STORE, LARKANA
|
| Respondents |
THE COMMISSIONER INLAND REVENUE, RTO, SUKKUR
|
| Citations |
2024 SLD 252 = (2024) 129 TAX 99
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
3(1),
3(1A),
8B(1),
11,
11(1),
11(2),
11(4),
11(5),
25,
35(5),
34,
36(3)
|