| Case ID |
3b38234e-b1eb-419b-859a-827761a3261e |
| Body |
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| Case Number |
STA No. 622/LB/2014 |
| Decision Date |
Nov 14, 2016 |
| Hearing Date |
Nov 14, 2016 |
| Decision |
The appeal was disposed of after careful consideration of the arguments presented by both parties. The Appellate Tribunal found that the assessing authority had failed to serve the Show Cause Notice at the correct mailing address of the appellant, thus violating the provisions of the Sales Tax Act. The tribunal observed that the allegations of tax fraud and the reliance on fabricated evidence were unfounded. The decision emphasized the importance of due process and the need for the tax authorities to substantiate their claims with credible evidence. Consequently, the Tribunal ruled in favor of the appellant, overturning the previous decisions made by the assessing officer and the CIR (Appeals-II). The tribunal concluded that the appellant had provided sufficient justification for their claims and that the case against them was built on conjectures rather than facts. |
| Summary |
The case revolves around a sales tax appeal filed by M/S. Stahlco Motors (Pvt) Ltd. against the order of the CIR (Appeals-II), Lahore. The primary issue was the alleged inadmissible adjustment of input tax due to fake invoices. The tribunal examined the procedural flaws in the assessment process, particularly the failure to serve proper notices and provide adequate opportunities for the appellant to defend their position. The tribunal highlighted the legal obligations of both buyers and sellers under the Sales Tax Act, emphasizing that the responsibility of verifying the registration status of suppliers lies primarily with the suppliers themselves. The decision reinforces the principles of fair trial and due process in tax assessments, making it a significant reference for future cases involving sales tax disputes. The ruling also underlines the necessity for tax authorities to substantiate their claims with reliable evidence, thereby protecting taxpayers' rights. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/S. Stahlco Motors (Pvt) Ltd.,
The CIR RTO, Lahore
|
| Judges |
QAMAR UL HAQ BHATTI,
MASOOD AKHTAR SHAHEEDI
|
| Lawyers |
Chaudhry Manzoor Ahmad, Advocate,
Mr. Yasir Butt, D.R.
|
| Petitioners |
M/S. Stahlco Motors (Pvt) Ltd.
|
| Respondents |
The CIR RTO, Lahore
|
| Citations |
2017 SLD 7
|
| Other Citations |
2004 PTD 868,
2011 PTD (Trib) 866,
2007 PTD (Trib) 468,
2008 PTD (Trib) 8
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
3(3),
11(4),
23(1),
25(1),
33(13),
34
|