| Case ID |
469804f8-6a63-496d-86c9-56383a5aeede |
| Body |
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| Case Number |
S.T. 252/PB of 2003 |
| Decision Date |
Jan 26, 2009 |
| Hearing Date |
Jan 22, 2009 |
| Decision |
The appeal filed by Messrs Balana Restaurant against the order of the learned Collector was dismissed. The Tribunal found that the sales tax charged and deposited was correctly applied under the Sales Tax Act, as the supply of food to the Pakistan Tobacco Company did not qualify for exemption under the Sixth Schedule. The Tribunal ruled that the appellant, as an independently registered tax payer, was liable for sales tax on the supplies made to another registered person, which is a taxable activity. The provisions governing exemptions were strictly construed in favor of the Revenue, and therefore, the claim for refund was rejected. |
| Summary |
This case revolves around the interpretation of the Sales Tax Act (VII of 1990), particularly regarding the exemption of sales tax for food supplied to industrial canteens. The appellant, Messrs Balana Restaurant, contested the dismissal of their refund claim for sales tax paid on supplies made to Pakistan Tobacco Company. The Tribunal concluded that the supplies did not meet the exemption criteria specified in the Sixth Schedule, as both parties involved were registered tax entities. The decision emphasized the importance of adhering to tax regulations and the strict interpretation of exemption clauses, which ultimately favored the Revenue. The ruling highlights critical aspects of sales tax law, including the implications of being registered under the Sales Tax Act, the nature of taxable supplies, and the interpretation of exemptions. This case serves as a significant reference for businesses in the food supply sector regarding their tax obligations and the conditions under which refunds may be claimed. |
| Court |
Tax Tribunal
|
| Entities Involved |
Messrs Balana Restaurant,
Pakistan Tobacco Company Limited
|
| Judges |
MUHAMMAD IBRAHIM KHAN
|
| Lawyers |
Barrister Mr. Farrukh Jawad Panni,
Mr. Abdul Latif Yousafzai
|
| Petitioners |
Messrs Balana Restaurant
|
| Respondents |
Federal of Pakistan,
Pakistan Tobacco Company Limited
|
| Citations |
2010 SLD 2103,
2010 PTD 258
|
| Other Citations |
PLD 1998 SC 64,
2001 SCMR 1376,
2007 SCMR 1131
|
| Laws Involved |
Sales Tax Act (VII of 1990)
|
| Sections |
13(1),
66,
3-B
|