| Case ID |
396d6ad2-f583-44f0-9e35-0ee3ee74e19b |
| Body |
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| Case Number |
M.A. (Stay) No.116/KB and S.T.A. No.145/KB of 2011 |
| Decision Date |
Feb 17, 2012 |
| Hearing Date |
Dec 09, 2011 |
| Decision |
The Appellate Tribunal Inland Revenue ruled in favor of Messrs SHELL (PAKISTAN) LIMITED, determining that the Commissioner Inland Revenue lacked jurisdiction to challenge the clearance of goods granted by the Customs Department. The Tribunal emphasized that the zero-rated exports made under section 24 of the Customs Act were valid and could not be invalidated based on procedural technicalities. The Tribunal set aside the impugned order and affirmed that the taxpayer was entitled to the refund as claimed, highlighting the importance of adhering to established legal frameworks and past practices in tax matters. |
| Summary |
In the case of Messrs SHELL (PAKISTAN) LIMITED vs. COMMISSIONER OF SALES TAX (INLAND REVENUE SERVICES) Zone-IV, the Appellate Tribunal Inland Revenue addressed critical issues regarding the jurisdiction of the Commissioner and the legality of tax refunds related to zero-rated exports under the Sales Tax Act, 1990 and Customs Act, 1969. The Tribunal found that the Commissioner had overstepped their authority by challenging the clearance granted by Customs, emphasizing that established legal provisions must be followed. The ruling reinforces the taxpayer's rights, particularly in the context of export operations, and underscores the need for regulatory bodies to respect established practices and legal frameworks. This case is significant for entities engaged in international trade and highlights the complexities of tax regulations in Pakistan, particularly concerning the Sales Tax Act and Customs Act. The decision sets a precedent for future cases involving jurisdictional disputes between tax authorities and customs officials, making it a pivotal reference point for legal practitioners and businesses alike. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Messrs SHELL (PAKISTAN) LIMITED,
COMMISSIONER OF SALES TAX (INLAND REVENUE SERVICES) Zone-IV
|
| Judges |
SYED MUHAMMAD,
JAMIL RAZA ZAIDI,
ZARINA M ZAIDI
|
| Lawyers |
Muhammad Naseem,
Badar-ud-Din Qureshi
|
| Petitioners |
Messrs SHELL (PAKISTAN) LIMITED
|
| Respondents |
COMMISSIONER OF SALES TAX (INLAND REVENUE SERVICES) Zone-IV
|
| Citations |
2013 SLD 292,
(2013) 108 TAX 49,
2013 PTD 353
|
| Other Citations |
PLD 1972 SC 271,
PLD 1998 SC 64,
2001 PTD (Trib.) 3810,
2003 PTD (Trib.) 279,
1997 PTD 47,
2001 SCMR 1806,
1993 SCMR 1232,
1996 SCMR 856,
2005 SCMR 69,
PLD 1972 Lah. 316,
1990 PTD 974,
1984 PTD 137,
2007 SCMR 729,
2010 PTD 465,
1991 PTD 217,
1993 SCMR 662,
PLD 1995 Kar. 587,
PLD 1997 Lah. 1,
1980 PTD 406,
1989 PTD 1010,
PTCL 2004 CL 18,
2006 PTD 1644,
PLD 1952 Lah. 582,
PLD 2000 SC (AJ&K) 20,
2003 CLC 1622,
2009 SCMR 1622,
2011 PTD 886,
Crawford, the Constitution of Statutes,
PLD 1969 Dacca 451,
1991 PTD (Trib.) 226,
(1989) 176 ITR 352 Pat. HC,
(1970) 77 ITR 6 SC,
(1979) 118 ITR 585 Rajastan HC,
(1974) 96 ITR 78 Mad. HC,
(1962) 46 ITR 152 Punjab HC Delhi,
PLD 1990 SC 1034,
PLD 2001 Kar. 52,
2002 PTD 2959,
(1992) 62 Taxation 57 (SC Pak),
PLD 1964 SC 572,
1986 PLC (C.S.) 560,
1980 CLC 2007,
1986 CLC 745,
1986 CLC 1408,
1991 MLD 1243,
(1974) 94 ITR 1,
(1984) 146 ITR 40,
1986 PTD (Trib.) 119
|
| Laws Involved |
Sales Tax Act, 1990,
Customs Act, 1969
|
| Sections |
10,
3,
4(1)(b),
24,
27,
131
|