| Case ID |
3d67aece-1b6a-43a7-8711-3ab3d1b92545 |
| Body |
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| Case Number |
S.T.A. No. 691/LB of 2002 |
| Decision Date |
Dec 29, 2004 |
| Hearing Date |
Oct 25, 2004 |
| Decision |
The Appellate Tribunal directed the Collectorate to recalculate the sales tax liability after accounting for a 10% allowance on the production figures of bagasse to account for wastage due to adverse environmental factors. The tribunal upheld the levy of sales tax at the value determined by the Central Board of Revenue, which was Rs. 200 per M. Ton. The appellant was instructed to pay the recalculated sales tax, while the additional tax and penalties were remitted by the tribunal. |
| Summary |
This case revolves around the interpretation and application of the Sales Tax Act, 1990, specifically concerning the taxation of bagasse produced by a sugar manufacturing entity. The Appellate Tribunal addressed issues related to the maintenance of records, the scope of sales tax chargeability, and the appropriate valuation of bagasse for tax purposes. The tribunal emphasized that sales tax is applicable on the supply of goods rather than their production, hence the need for accurate records to justify the quantities supplied. The decision highlighted the necessity of considering environmental impacts on production and allowed for a reduction in taxable quantity due to wastage. The ruling also reinforced the principle of uniformity in taxation by upholding the Central Board of Revenue's valuation of Rs. 200 per M. Ton, while allowing a minor concession for wastage. This case serves as a reference for similar disputes involving the valuation and taxation of agricultural by-products under the Sales Tax Act. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Fauji Foundation
|
| Judges |
Saeed Akhtar (Member Technical),
Pir Akhtar Hussain Bodla (Member Judicial)
|
| Lawyers |
Malik Muhammad Akram,
Muhammad Anwar,
Hamyun Sarfraz
|
| Petitioners |
Malik Muhammad Akram
|
| Respondents |
Muhammad Anwar,
Hamyun Sarfraz
|
| Citations |
2006 SLD 242,
2006 PTD 849
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
22,
23,
26,
3,
7
|