| Case ID |
399987fc-d193-4127-bb4b-5d878f684503 |
| Body |
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| Case Number |
S.T.A. No. 121/IB/2018 |
| Decision Date |
Jul 24, 2019 |
| Hearing Date |
Jul 24, 2019 |
| Decision |
The appeal was disposed of with the conclusion that the excess input tax credit or refund shall be determined when the appellant begins to make taxable supplies under the provisions of the Sales Tax Act, 1990. The orders from the lower authorities were vacated, and the refund application is to be considered pending until the appellant starts its electricity production and supply. |
| Summary |
In the case of M/S KAROT POWER COMPANY (PVT.) LTD. vs. CIR, CORPORATE ZONE, the Appellate Tribunal Inland Revenue addressed the issue of excess input tax refund claims under the Sales Tax Act, 1990. The appellant, a power generation plant under construction, filed for a refund of input tax for multiple months but was denied due to not having any taxable supplies. The Tribunal ruled that the refund could only be assessed once the appellant commenced its taxable activities, thus ensuring compliance with tax regulations. This case highlights the importance of understanding the legal provisions surrounding input tax claims and the necessity for taxable activities before refunds can be processed. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
KAROT POWER COMPANY (PVT.) LTD.,
CIR, CORPORATE ZONE, RTO, ISLAMABAD
|
| Judges |
M. M. AKRAM,
NADIR MUMTAZ WARRAICH
|
| Lawyers |
Ms. Sadia Nazir, FCA,
Mr. Shamshad Gul, DR
|
| Petitioners |
M/S KAROT POWER COMPANY (PVT.) LTD.
|
| Respondents |
CIR, CORPORATE ZONE, RTO, ISLAMABAD
|
| Citations |
2019 SLD 2527
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
3,
10(1)
|