| Case ID |
3a86b151-f6ae-48a6-a27d-b661612592b2 |
| Body |
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| Case Number |
S.T.A. No. 1978/LB/2021 |
| Decision Date |
Mar 14, 2022 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal Inland Revenue has decided in favor of the taxpayer, M/S. Rachna Super Store, Faisalabad, by allowing the appeal against the penalty imposed under Section 33(25) of the Sales Tax Act, 1990. The tribunal noted that the provisions of Section 33 are meant to ensure compliance and not to generate revenue. The taxpayer had initially failed to integrate their Point of Sale Software with the FBR's online system but has since complied. The tribunal emphasized that penalty provisions should be applied judiciously, and since the taxpayer has now integrated with the FBR, the previously imposed penalty of Rs. 1,000,000 was deleted. Thus, the appeal was allowed. |
| Summary |
In the case of M/S. Rachna Super Store vs. The CIR RTO, Faisalabad, the Appellate Tribunal Inland Revenue ruled on a significant issue regarding compliance with the Sales Tax Act, 1990. The case centered around the taxpayer's failure to initially install Point of Sale Software integrated with the FBR's online system, resulting in a substantial penalty. However, the tribunal found that the taxpayer had since complied with these requirements, demonstrating a commitment to adhere to legal standards. The decision underscores the tribunal's view that penalties should promote compliance rather than serve as mere revenue-generating tools. The ruling highlights the importance of understanding the nature of compliance provisions in tax law and their implications for taxpayers. This case serves as a precedent for similar cases where compliance has been achieved. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/S. RACHNA SUPER STORE, FAISALABAD,
THE CIR RTO, FAISALABAD
|
| Judges |
MR. ZAHID SIKANDAR
|
| Lawyers |
Mr. Khubaib Ahmad,
Mr. Ali Khalid
|
| Petitioners |
M/S. RACHNA SUPER STORE, FAISALABAD
|
| Respondents |
THE CIR RTO, FAISALABAD
|
| Citations |
2022 SLD 2126,
2022 PTCL 705
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
33
|