| Case ID |
398fdfa9-0aed-4d68-85d2-acdac61961da |
| Body |
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| Case Number |
K-30 of 2001 |
| Decision Date |
May 22, 2001 |
| Hearing Date |
|
| Decision |
The appeal is allowed, and the order appealed against is set aside. The Tribunal declared the demand raised by the Department to be illegal under the circumstances presented. |
| Summary |
In the case of Appeal No. K-30 of 2001, decided on May 22, 2001, by the Appellate Tribunal Inland Revenue, the appellant, represented by Consultant Ataullah Khan, contested a decision by the Department, represented by Appraising Officer Nihar Khan. The dispute centered on the levy of sales tax on imported crude oil under the Sales Tax Act, 1990 and the Customs Act, 1969. The appellant had imported crude oil and presented bills of entry on August 7, 1999, when sales tax was exempt under the Sixth Schedule of the Sales Tax Act. However, a change in the sales tax rate was notified on August 16, 1999, through S.R.O. No. 922(1)/99, making the previously exempted crude oil subject to sales tax. The Department issued a show-cause notice over two years later, demanding payment of the additional sales tax. The appellant argued that the critical date for tax exemption was August 12, 1999, when the Import General Manifest was delivered, thus making the sales tax exemption applicable. The Tribunal found in favor of the appellant, ruling that the Department's demand was based on a misunderstanding of the applicable tax rates and the relevant legal provisions. The decision emphasized the proper application of the Sales Tax Act over conflicting Customs Act provisions and highlighted procedural lapses by the Department, such as the delayed issuance of the show-cause notice and incorrect interpretation of the legislative amendments. This case underscores the importance of timely and accurate application of tax laws and procedural compliance by tax authorities in Pakistan's regulatory framework. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Appellate Tribunal Inland Revenue,
Appellant,
Department
|
| Judges |
SAJID HUSSAIN,
ZAFAR IQBAL
|
| Lawyers |
Ataullah Khan,
Nihar Khan
|
| Petitioners |
Ataullah Khan
|
| Respondents |
Nihar Khan
|
| Citations |
2002 SLD 549,
2002 PTD 329
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990,
Customs Act, 1969
|
| Sections |
5(b),
SixthSched,
32(2),
79(2)(4)
|