| Case ID |
3667fd04-8876-4d3b-a33e-c79c26e86c6a |
| Body |
View case body. Login to View |
| Case Number |
S.T.A. No. 526/LB of 2019 |
| Decision Date |
May 13, 2019 |
| Hearing Date |
May 07, 2019 |
| Decision |
The Appellate Tribunal set aside the impugned show-cause notice and the consequent orders of both authorities below, deeming them illegal, unlawful, and void ab initio. The appeal was accepted based on the finding that the taxpayer was a non-registered person and therefore not liable to observe the provisions of the Sales Tax Act, 1990. The tribunal emphasized that only registered persons are required to file sales tax returns and issue tax invoices, which the taxpayer was unable to do due to their de-registration in 2004. The ruling reinforced the principle that tax cannot be imposed without proper registration and the issuance of sales tax invoices, highlighting that the department failed to register the appellant despite their liability to be registered. |
| Summary |
In the case of M/S Famous Sweets vs. The CIR(A), the Appellate Tribunal Inland Revenue addressed significant issues regarding sales tax liability and registration requirements under the Sales Tax Act, 1990 and the Sales Tax Rules, 2006. The taxpayer, M/S Famous Sweets, contested a show-cause notice issued by the tax authority asserting a sales tax liability based on discrepancies found during income tax audits. The tribunal found that the taxpayer had been deregistered in 2004 and was not required to comply with the provisions of the Sales Tax Act as an unregistered person. The decision emphasized that tax invoices could only be issued by registered persons, and the department's actions lacked legal support. The tribunal's ruling is crucial for understanding the obligations of registered versus unregistered persons in tax compliance. This case highlights the importance of proper registration and compliance with tax laws, providing clarity on the legal framework governing sales tax. Keywords: sales tax, tax compliance, registration, tax invoice, Appellate Tribunal, tax liability, legal framework. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
CH. SHAHID IQBAL DHILLON,
DR. MUHAMMAD NAEEM
|
| Lawyers |
Khubaib Ahmad,
Ashfaq Ahmad
|
| Petitioners |
M/S FAMOUS SWEETS, FAISALABAD
|
| Respondents |
THE CIR(A), RTO, FAISALABAD
|
| Citations |
2020 SLD 607,
2020 PTD 562
|
| Other Citations |
2019 PTD 1493,
2000 PTD 3765
|
| Laws Involved |
Sales Tax Act, 1990,
Sales Tax Rules, 2006
|
| Sections |
2(40),
3,
11(2),
23,
23(2),
25,
26,
33,
34,
6
|