| Case ID |
428775c0-9e3e-4056-babf-753f7ecd87d5 |
| Body |
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| Case Number |
Writ Petitions Nos.29138, 30678 and 30782 of 2013 |
| Decision Date |
Jan 16, 2014 |
| Hearing Date |
Dec 05, 2013 |
| Decision |
The Lahore High Court dismissed the constitutional petitions filed by the Lahore Electric Supply Company Limited and Gujranwala Electric Power Company Limited against the notices issued under section 11-A of the Sales Tax Act, 1990 concerning short-paid amounts of sales tax. The court held that the Federal Board of Revenue (FBR) had the authority to verify information provided by the petitioners, including electricity bills, to determine tax liabilities. The court ruled that the notices were valid as they were based on the information already included in the petitioners' returns, and the petitioners had not established a legitimate dispute regarding the short-paid amounts. The court emphasized the importance of compliance with tax regulations and confirmed that the FBR's reliance on external documents for verification did not violate the provisions of the Sales Tax Act. Consequently, the petitions were dismissed, reinforcing the government's ability to recover short-paid sales tax without prior notice under section 11-A of the Act. |
| Summary |
In the case before the Lahore High Court, the Lahore Electric Supply Company Limited (LESCO) and Gujranwala Electric Power Company Limited (GEPCO) challenged notices issued by the Federal Board of Revenue (FBR) for alleged short-payment of sales tax under section 11-A of the Sales Tax Act, 1990. The key issues revolved around the validity of the notices, the verification processes employed by the FBR using electricity bills, and the interpretation of tax liability under the law. The court found that the petitioners had indeed short-paid their sales taxes, as the FBR's verification of the electricity consumption data indicated discrepancies in the reported amounts. The court clarified that the FBR's actions were lawful and that the petitioners, as collection agents for the government, were obligated to ensure accurate reporting of tax liabilities. The judgment underlined the necessity for compliance with sales tax regulations and upheld the FBR's authority to act on verified information without prior notice. This case highlights the importance of accurate tax reporting and the government's role in enforcing tax laws effectively. |
| Court |
Lahore High Court
|
| Entities Involved |
Federal Board of Revenue,
Lahore Electric Supply Company Limited,
Gujranwala Electric Power Company Limited
|
| Judges |
MRS. AYESHA A. MALIK, J
|
| Lawyers |
Not available
|
| Petitioners |
LAHORE ELECTRIC SUPPLY COMPANY LTD.,
Gujranwala Electric Power Company Limited
|
| Respondents |
FEDERAL BOARD OF REVENUE through Chairman and 2 others
|
| Citations |
2014 SLD 1483,
2014 PTD 501
|
| Other Citations |
2006 PTD 378,
2009 PTD 1894,
PLD 1997 SC 351,
2004 PLC 137,
PLD 1965 SC 269
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Pakistan, 1973
|
| Sections |
11A,
48,
199
|