| Case ID |
4208f499-86e7-4cb4-abfc-36908fdaec03 |
| Body |
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| Case Number |
Writ Petitions Nos.28287, 28917, 31630, 29398, 294 |
| Decision Date |
Mar 07, 2014 |
| Hearing Date |
|
| Decision |
The Lahore High Court allowed the writ petitions, directing the Federal Board of Revenue to accept the sales tax returns filed by the petitioners, thereby permitting the adjustment of input tax claimed by the petitioners on provincial sales tax paid under provincial laws. The court concluded that the interpretation of section 2(22A) of the Sales Tax Act, 1990 by the Federal Board of Revenue was incorrect, as it unreasonably restricted the petitioners' statutory rights to input tax adjustments. The court emphasized that the provincial sales tax, as defined in the law, should be recognized for input tax adjustments without the need for prior notifications from the Federal Government. The judgment reinforced the right of taxpayers to claim adjustments based on existing provincial sales tax laws, reaffirming the legal framework established by the Sales Tax Act, 1990. |
| Summary |
In the landmark case decided by the Lahore High Court on March 7, 2014, the court addressed significant issues surrounding the interpretation of the Sales Tax Act, 1990, particularly concerning the rights of taxpayers to claim adjustments on input tax for provincial sales tax. The petitioners, including Treet Corporation Ltd., challenged the Federal Board of Revenue's stance that denied input tax adjustments based on the interpretation of section 2(22A) of the Sales Tax Act. The court found that the Federal Board's interpretation was contrary to the statutory rights afforded to registered persons under the law. The decision underscored the importance of recognizing provincial sales tax for input tax adjustments, thereby ensuring taxpayers are not unfairly deprived of their rights. This case serves as a crucial reference for future tax-related disputes, establishing a precedent for the interpretation of sales tax laws and the rights of taxpayers in Pakistan. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
MRS. AYESHA A. MALIK, J
|
| Lawyers |
Mr. Shehzad A. Elahi, Advocate,
Mr. Waseem Ahmed Malik, Advocate,
Mr. Shahzad A. Elahi, Advocate,
Mr. Muhammad Ajmal Khan, Advocate,
Mr. Sumair Saeed Ahmad, Advocate,
Mr. Mansoor Usman Awan, Advocate,
Mr. M.M. Akram, Advocate,
Mr. Naveed A. Andrabi, Advocate,
Mr. Khalil ur Rehman, Advocate,
Mr. Sajid Ijaz Hotiana, Advocate,
Mr. Akhtar Ali, Advocate,
Mr. Mustafa Kamal, Advocate,
Mr. Angbeen Atif Mirza, Advocate
|
| Petitioners |
TREET CORPORATION LTD. through Company Secretary and others
|
| Respondents |
FEDERATION OF PAKISTAN through Ministry of Finance and others
|
| Citations |
2014 SLD 1515,
2014 PTD 1285,
(2014) 109 TAX 229
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Pakistan, 1973
|
| Sections |
2(22A,
2(20)(c),
2(4),
7,
199
|